Price increase letter templates
Announce a price increase in writing at least 30 days before it takes effect, or earlier if your contract says so. Give the new price, the effective date, one or two sentences of concrete reasoning and what stays the same, without apologizing repeatedly. For subscriptions, tell customers how to cancel if they don't accept the change.
By Alvyn Detavernier, founder · published
When to use it
- An annual pricing review at the start of the year or fiscal year.
- A lasting rise in your costs: materials, fuel, labor, insurance, subcontractors.
- An upgraded offer that justifies a new price.
- The end of introductory pricing or a time-limited discount.
- A long-time client still billed at a rate that no longer covers your costs.
The templates, ready to copy.
Replace the parts in brackets with your details, proofread, send.
Template 1
Standard (B2B clients)
Subject: Updated pricing effective [date]
Hi [First name], I'm writing to let you know that starting [date], our pricing will change as follows: - [Service 1]: $[old price] to $[new price] - [Service 2]: $[old price] to $[new price] This is our first increase since [year], and it reflects [concrete reason, for example: a 12% rise in our labor and insurance costs over two years]. What isn't changing: [turnaround times, your account manager, payment terms, service levels]. Any orders placed before [date] will be billed at current rates. I'm happy to talk it through. Best regards, [Full name] [Title], [Company name]Template 2
Subscription (with cancellation instructions)
Subject: Your [Plan name] price is changing on [date]
Hi [First name], Starting [date], your [Plan name] subscription will go from $[old price] to $[new price] per month. Why: [one sentence, for example: we're adding free shipping and Saturday support]. You don't need to do anything to keep your plan. If the new price doesn't work for you, you can cancel anytime before [date] in your account: [link], or by emailing [email]. Thanks for being with us, The [Company name] teamTemplate 3
Long-time client (personal, phased)
Subject: Our [year] pricing and what it means for you
Hi [First name], We've worked together for [number] years, so I wanted to tell you directly: our rates are going up. Your rate hasn't changed since [year], while [concrete reason]. To give you time to plan, I'd like to phase it in: - $[amount] starting [date], - $[amount] starting [date]. I'll give you a call next week to talk it over. Best, [Full name]Template 4
End of introductory pricing
Subject: Your intro rate ends on [date]
Hi [First name], You were one of the first customers of [Plan name], and you've had our introductory rate of $[amount] since [date]. As noted when you signed up, it ends on [date]. The standard rate of $[amount] will apply starting with your next billing date. As a thank-you for joining early, you can [concrete perk, for example: lock in your current rate for 12 months by switching to annual billing] before [date]: [link]. Thanks for believing in us early, [First name], [Company name]
Tips to make it work.
- Show old and new prices in dollars, not only a percentage. Customers do the math anyway, and they trust it more when you've done it for them.
- One concrete reason is enough: "first increase since 2023" or "insurance premiums up 18%" persuades more than a paragraph about inflation.
- Give price-sensitive customers an option: lock in the current rate with an annual commitment, a lighter plan, or a phased increase.
- Check your contracts before you write. B2B agreements often set a notice period or an escalation clause that overrides your timeline.
- For automatic renewal subscriptions sold to California consumers, state law requires a clear notice of a price change 7 to 30 days before it takes effect, with instructions on how to cancel. Several other states have their own automatic renewal laws.
- Brief your team with answers to the three most likely objections, so nobody improvises discounts on the phone.
Mistakes to avoid.
- Letting customers discover the increase on their invoice.
- Raising a price locked by a current contract without an escalation clause or the client's agreement.
- Apologizing over and over, which suggests the increase isn't justified.
- Announcing it the same week as a service outage or a late delivery.
- Sending your biggest accounts the same form email as everyone else instead of calling them.
Frequently asked questions.
How much notice should you give for a price increase?
Can I raise prices in the middle of a contract?
How do you justify a price increase to customers?
How do you tell a loyal customer about a price increase?
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