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How to Write a Price Increase Letter: 9 Steps (with Examples)

4 min read
Sample Price Increase Letter - Google Docs, Word

Writing a price increase letter can feel daunting, but it’s a necessary communication to maintain transparency and trust with your clients or customers. Here’s a step-by-step guide to craft a professional and respectful letter that explains the change clearly and positively.

Templates

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Sample Price Increase Letter - Google Docs, Word
Sample Price Increase Letter to Customers
Sample Rent Increase Letter Due to Inflation - Google Docs, Word

Writing a Price Increase Letter

1

Begin with a polite and professional greeting –

Start your letter with a warm and respectful greeting. Address your recipient by name, if possible, to give a personal touch.

  • Avoid overly casual or abrupt openings as they may seem unprofessional.

Example:

Dear Ms. Kate Phillips,” or “Dear Valued Customer,

2

Acknowledge your relationship with the recipient –

Thank the recipient for their continued support or partnership. This reinforces the value you place on your relationship and sets a positive tone.

Example:

Thank you for being a loyal customer of our services over the past three years. Your trust means a great deal to us.

3

State the purpose of the letter –

Transition smoothly into explaining the price increase. Be upfront and concise about the main point to avoid confusion.

Example:

I am writing to inform you about an upcoming adjustment to our pricing structure, effective March 1, 2095.

4

Provide a clear explanation for the price increase –

Justify the change by explaining the reasons behind it. Focus on how the increase is necessary to maintain quality, adapt to market changes, or support operational costs. Mention reasons such as:

  • Rising costs of materials or labor
  • Expansion of services or improvements
  • Economic factors such as inflation

Example:

Over the past year, we have experienced significant increases in the costs of raw materials and production. To continue delivering the high-quality products you expect, we find it necessary to make this adjustment.

5

Provide details about the price change –

State the new prices or the percentage of the increase. Transparency is key to maintaining trust.

Example:

Starting March 1, 2095, our monthly subscription rate will increase from $50 to $60. This adjustment ensures we can continue offering the same exceptional service.

6

Emphasize the value and benefits you provide –

Reassure your customers that they are getting value for their money. Highlight any additional benefits or improvements.

Example:

This change will allow us to introduce new features, faster delivery times, and enhanced customer support to better serve you.

7

Offer a transitional solution or support –

To ease the change, consider offering a grace period, special discounts, or additional support. This demonstrates empathy and understanding.

Example:

For customers who renew their subscription before February 15, 2095, we are pleased to offer a one-time discount of 10% on the new rate.

8

Express gratitude and invite feedback –

Thank the recipient again for their support and encourage them to reach out with questions or concerns. This keeps the communication open and shows that you value their input.

Example:

We truly appreciate your understanding and continued support. If you have any questions or concerns about this change, please don’t hesitate to contact me directly at [email protected] or (555) 123-4567.

9

Close the letter professionally –

End with a professional and courteous closing to leave a positive impression.

  • “Sincerely,” or “Best regards,” followed by your name and position.

Example:

Sincerely,
Kevin Doyle
Customer Relations Manager

Sample Price Increase Letter

Subject: Upcoming Pricing Adjustment Effective March 1, 2097

Dear Ms. Kate Phillips,

Thank you for being a loyal customer and for trusting us with your business over the years. Your support means a great deal to us, and we are committed to continuing to provide you with the exceptional quality and service you’ve come to expect.

I am writing to inform you about an upcoming adjustment to our pricing structure, effective March 1, 2097. Over the past year, we have faced rising costs in production, materials, and operational expenses. To maintain the high standards of our services and introduce exciting new features, it has become necessary to implement a price increase.

Starting March 1, 2097, the monthly subscription rate will increase from $50 to $60. This adjustment allows us to continue delivering top-tier service, enhance our offerings, and ensure we can meet your evolving needs effectively.

We understand that price changes can be challenging, and we want to support you during this transition. As a token of our appreciation, customers renewing their subscription before February 15, 2097, will receive a one-time 10% discount on the new rate.

We truly value your understanding and continued partnership. If you have any questions or concerns about this change, please don’t hesitate to reach out. You can contact me directly at [email protected] or call (555) 123-4567.

Thank you again for your trust in us. We look forward to serving you in the future.

Sincerely,
Kevin Doyle
Customer Relations Manager

Tips

  • Keep the tone polite and respectful: Avoid sounding defensive or overly apologetic.
  • Focus on the value you provide: Help recipients see the benefits they receive from your service or product.
  • Personalize whenever possible: If sending to individual clients, use their names and reference their specific relationship with your company. This makes the letter feel personal and shows that you value their connection, sustaining understanding and loyalty.

Important

  • Avoid vague explanations: Customers may lose trust if they feel the reasons for the price increase are unclear.
  • Don’t delay sending the letter: Provide ample notice to give recipients time to adjust.
  • Be prepared for feedback: Have a plan to handle questions or concerns professionally.

FAQs

How much notice should I give for a price increase?

It’s standard to give at least 30 days’ notice, but this can vary based on your industry and customer agreements.

What if my customers are unhappy with the price increase?

Be empathetic and offer to discuss their concerns. Highlight the reasons for the change and any added value they’ll receive.

Should I offer a discount to ease the transition?

Yes, providing a transitional discount or phased pricing can help retain customers and soften the impact of the change.

Should I send the letter by email or physical mail?

Choose the method that best suits your audience. Email is faster and cost-effective, while physical letters may feel more personal for long-term clients.

About This Article

Sandra
Authored by:
Highfile Team Author, Life Coach
This article and its template(s) were authored by . Sandra Solis, a Richmond, Texas-based life coach, speaker, and entrepreneur, is an expert in personal growth and leadership transformation through her one-on-one coaching sessions. As a graduate of The Coaches Training Institute, Sandra has honed her skills for seven years, empowering individuals to reshape their mindsets and excel as leaders. She earned a BA in Anthropology from the University of California, Los Angeles, enriching her understanding of human behavior and cultural diversity.