How do I write a price increase letter to customers?
A good price increase letter thanks the customer, states the new price, gives the date it starts and offers one plain reason, all in a few short sentences. Send it at least 30 days before the change, sign it with your own name, and tell your best customers personally before it arrives.
How to write the letter in seven steps
Open with thanks, by name. “Hi Maria, thank you for trusting us with your home.” Not “Dear valued customer.”
State the change plainly. Give the old price and the new price, or the new price per visit or per month. Do not make them do math.
Give the start date. One exact date, at least 30 days out.
Give one reason. One sentence. Rising costs for labor, fuel or supplies is enough.
Say what stays the same. The same crew, the same schedule, the same guarantee. This is what they are paying for.
Tell them what to do next. Usually nothing. Give them a direct number in case they have questions.
Sign it yourself. Your name and your phone number, not a company inbox.
Send it the way you normally talk to that customer, usually email, with a printed copy or a note on the next invoice. If you have not settled on the amount yet, start with our guide to raising prices without losing customers.
What should a price increase letter say?
It should say what is changing, when it starts, why, and what stays the same. It should thank the customer. Everything else can be cut.
Short letters read as confident. Long letters read as nervous, and a nervous letter invites pushback. Leave out long apologies, the word “unfortunately,” a list of every cost that went up, and any comparison to other companies. Keep it under 200 words. If a customer wants more detail, they will call, and that call is a chance to talk with them directly.
How much notice should I give?
Thirty days is a common standard for most service businesses, and 60 days is kinder for annual contracts or large commercial accounts. If you have a signed service agreement, check what it says about price changes and follow it.
Time the letter so the new price starts on a clean line: the first of a month, the start of a season or the first visit of the new year. Avoid sending it the same week as a missed appointment or a complaint. Fix the problem first, then send the letter.
Should I explain why prices are going up?
Yes, in one sentence. A clear reason makes the change easier to understand, and one honest sentence is enough.
“Our costs for fuel, equipment and labor have gone up” is a complete reason. You do not need to prove it with numbers or explain your profit margin. What helps more is the next sentence: what the customer keeps, like the same crew or the same day of the week.
Should I offer something to soften the increase?
You can, but you do not have to. The best offer is one that helps you too, like keeping the current price for customers who prepay for the season or sign an annual plan before the new price starts.
That turns the letter from bad news into a choice. Customers who take the offer lock in with you for longer, and you get paid up front or on a set schedule. Give the offer a firm deadline, the same date the new price begins.
What does a good price increase letter look like?
A good letter is short, warm and specific to the service. Here are four you can copy. Replace everything in [brackets].
Hi [Customer name],
Thank you for trusting [Business name] with your lawn. We have enjoyed taking care of your yard [this season / for the past [number] years].
Starting [date], the price of your [weekly mowing / lawn care plan] will change from [old price] to [new price] per [visit / month]. Our costs for fuel, equipment and labor have gone up, and this change lets us keep the same crew and the same schedule you are used to.
You do not need to do anything. Your service will continue as usual. If you have any questions, call or text me directly at [phone number].
Thank you for being a customer. We look forward to another great season.
[Your name]
[Business name]
Hi [Customer name],
Thank you for having [Business name] in your home. It means a lot that you trust our team with your space.
Starting [date], the price of your [weekly / every-other-week / monthly] cleaning will change from [old price] to [new price] per visit. The cost of supplies and of paying our cleaners a fair wage has gone up, and this change lets us keep [cleaner's name / the same team] on your home every visit.
Your cleaning day and checklist stay the same. If you would like to talk about your schedule or what is included, call or text me at [phone number].
Thank you for being part of our [Business name] family.
[Your name]
[Business name]
Hi [Customer name],
Thank you for choosing [Business name] to take care of your heating and cooling. We are grateful to be your [HVAC company / maintenance plan provider].
Starting [date], our [maintenance plan / service call fee] will change from [old price] to [new price] per [year / month / visit]. The cost of parts, equipment and trained technicians has gone up, and this change lets us keep the same level of service you count on.
Your plan still includes [two tune-ups a year / priority scheduling / [number]% off repairs]. If you renew before [date], you can keep your current rate for one more year.
If you have any questions, call me directly at [phone number].
[Your name]
[Business name]
Hi [Customer name],
Thank you for trusting [Business name] with your pool. We have enjoyed keeping it clean and ready for you [this season / for the past [number] years].
Starting [date], the price of your [weekly pool service] will change from [old price] to [new price] per [visit / month]. The cost of chemicals, fuel and labor has gone up, and this change lets us keep the same technician and the same service day you are used to.
Nothing changes on your end. If you have questions or would like to talk about your service, call or text me at [phone number].
Thank you for being a customer. We look forward to another great swim season.
[Your name]
[Business name]