Cost Increase Letter

A cost increase letter is a formal communication or notice sent by businesses to inform customers, suppliers, or clients about an upcoming price adjustment. Companies typically issue this letter when external factors, such as rising material costs, inflation, supply chain disruptions, or increased operational expenses, necessitate a change in pricing. The letter usually includes a clear explanation of the reason for the price adjustment, the effective date, and any provisions for existing customers to lock in current rates before the new pricing takes effect. Maintaining transparency and professionalism in such communications strengthens customer trust and reduces potential concerns.