How To Write A Price Increase Letter (Samples)

A letter for a price increase is a document sent by a seller notifying customers about a rise in prices. This might have been brought about by a change in the industry where the raw materials needed, or the services offered to produce your product became costly.

Free Templates

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    How to Justify Price Increase

    The price increase can be a sensitive topic for clients. Some, if not all, of your clients will have different opinions and complaints concerning the change. They will need sensible reasons and even feel betrayed but at the end of the day, the main goal in business is to increase profits rather than maintain customer satisfaction. you as an entrepreneur.

    Communication is vital in such a situation. You can sync your sales department and customer service teams to provide customers with consistent information. This information would consist of valid reasons, like that the change was due to the possibility of the rapid growth of population in the area; therefore, there was more demand for the product, which led to the price rise.

    Perhaps if the company had to buy imports at a higher price, the clients would be affected by having to pay more for the products. It could also be a possibility of the inadequacy of industrial production, particularly concerning basic consumer goods or agricultural inputs, to match the rising demand this would also cause a rise in price levels on the supply side. It may be, to avoid deficit spending.

    Deficit spending means spending to the point of exceeding revenue over a period, which results in an increased level of prices.

    All these would be among many reasons justifying the price increase and they should be well communicated to your team. This is because the customers might want to siphon information from people in the sales department and, at the same time, inquire from people in the service department. Generally, the best way you can deal with this situation is to assure your clients that this change will improve product and service quality.

    How to Write a Price Increase Letter

    These are formal documents. As a professional businessman or woman, you want to send your clients these letters, ensuring that by the end of the day, you have made the changes and they are still willing to work with you. You need to be keen on the details you want to cover in your letter.

    Start with an appreciation

    In business, client appreciation is salient. Show appreciation for customers by stressing the value they delivered. Mention how they have impacted your business.


    In the Tank industry,

    “First and foremost, we would like to thank you for your partnership over the years and for allowing us to serve your needs. Thanks to your big purchase in 2020, we got five more clients who increased sales by 16% that month. Your satisfaction is very important to us, and we hope that we have been successful in providing you with excellent customer service and products.”

    Write a confident statement

    If you want your business to be successful, you need to get comfortable with raising your rates. Being direct makes your expectations very clear, and as a result, you are more likely to get what you want.


    in a Lubricant company,

    “Please be advised that [name of company] will generally increase prices up to 4% on all passenger car, motorcycle, Commercial, and ancillary products effective, Monday, June 18th, 20XX.”

    Excite through an extension

    Build relationships with your customers. In this letter, giving a customer an extension of the current rate is one of the easiest ways to gain their loyalty.


    You could say,

    “My rates will range from $300 to $500 on April 24th. However, since you are one of my most valued clients, I’m offering you a complimentary extension of current rates until May 23rd.”

    Have an open discussion

    Give customers a way to contact you. Make them comfortable by having a dialogue; this is done by sanctioning them to express their ideas regarding your service or product and offering to answer their questions. This will emphasize your dedication.


    “What do you think of this new rate?”

    Conclude with a future-focused statement

    End your letter with an encouraging message of high expectations for working with them on future projects.

    This can be written as:


    “As we start the year, I’m more than happy to continue working with you in business for a better future!”

    Price Increase Letter Template 

    [Your Company Letterhead]


    [Customer’s Name]

    [Customer’s Address]

    [City, State, Zip Code]

    Dear [Customer’s Name],

    I hope this letter finds you well. We would like to express our sincere gratitude for your continued support and trust in [Your Company Name] as your provider of [type of products/services]. It has always been our pleasure to serve you, and we look forward to continuing to meet your [specific service/product] needs.

    We are writing to inform you of an upcoming adjustment to our pricing structure. Effective [Effective Date of Price Increase], the price of [specific product/service] will increase by [percentage or dollar amount]. This adjustment is reflected in the following way:

    • [Old Price] will now be [New Price]
    • [If applicable, list other specific products/services affected by the price increase]

    This decision was not made lightly. Over the past [time period], we have absorbed significant increases in the costs of [mention specific reasons for the increase, such as raw materials, labor, and operational costs] in an effort to avoid passing these costs onto our customers. Despite our best efforts to contain these costs through efficiency improvements and cost-saving measures, we find it necessary to adjust our pricing to ensure the continued quality and sustainability of our products/services.

    We understand that any price increase is never welcome, and we want to assure you that we are committed to keeping our prices as competitive as possible while ensuring the quality and value you expect from us.

    Please note that all orders placed before [Effective Date of Price Increase] will be honored at the current pricing. We encourage you to take advantage of this notice period to make any purchases or place orders under the current pricing structure.

    We are here to answer any questions you may have about this price adjustment or how it may affect your future purchases. Your satisfaction and continued patronage are very important to us, and we hope to navigate this necessary transition as smoothly as possible together.

    Thank you for your understanding and continued support. We value your business and look forward to serving you with the same dedication and quality you have come to expect from us.


    [Your Signature]

    [Your Name]

    [Your Title]

    [Your Company Name]

    [Contact Information]

    Professional Price Increase Letter Samples

    General Price Increase Letter Sample

    Dear Valued Customer,

    I hope this letter finds you and your team in good health and high spirits. At Acme Supplies Co., we have always valued the trust and loyalty you place in us for your supply needs. It is our ongoing commitment to provide you with high-quality products and exceptional service.

    We are writing to inform you of an upcoming adjustment to our pricing structure that will affect our range of products. Effective May 1, 20XX, there will be an average price increase of 5% across all our product lines. This decision comes after careful consideration and is necessitated by the rising costs of raw materials, labor, and increased operational expenses that we have absorbed in recent years.

    We understand that any change in pricing can impact your budgeting and planning. Please see below for a summary of the changes:

    • Office Supplies: Increase of 5%
    • Industrial Tools: Increase of 5%
    • Technology Accessories: Increase of 5%

    This price adjustment ensures that we can continue to offer the quality and reliability you expect from our products while investing in the innovation and service improvements that add value to your business.

    We assure you that we have taken every possible measure to minimize the impact of these increases on our customers. All orders placed before May 1, 20XX, will be honored at current prices, and we encourage you to take advantage of this notice period for any immediate or bulk purchase needs.

    We deeply appreciate your understanding and continued partnership. Our team is here to discuss any questions or concerns you may have regarding this price adjustment. We remain committed to supporting your business needs and ensuring that our partnership continues to thrive.

    Thank you for your ongoing support and trust in Acme Supplies Co. We look forward to serving you with the same dedication and quality as always.

    Warm regards,


    James Lin

    CEO, Acme Supplies Co.

    (555) 987-6543

    Increase in Material Cost Letter Sample

    Subject: Upcoming Price Adjustment for Our Premium Coffee Line

    Dear Coffee Lovers,

    First and foremost, we want to extend our deepest gratitude for your unwavering support and passion for BeanCrafters Coffee Co. Your enthusiasm for our premium coffee selections fuels our commitment to sourcing and roasting the finest beans for your enjoyment.

    We’re reaching out today to share some important news regarding our beloved premium coffee line. Due to a significant increase in the cost of specialty beans and sustainable packaging materials, we find it necessary to adjust our prices to reflect these changes. Starting July 1, 20XX, our premium coffee line will see a price increase of approximately 8%.

    This decision was not made lightly. Over the past year, we’ve absorbed as much of the cost increases as possible to avoid impacting our valued customers. However, to continue offering the exceptional quality and ethical sourcing you expect from us, this adjustment has become unavoidable.

    We understand that this news may be disappointing. As a token of our appreciation for your continued support, we’re offering a 10% discount on all premium coffee purchases made before the price adjustment takes effect. It’s a small way for us to say thank you and to help ease this transition.

    We’re here to answer any questions you may have about this change. Feel free to reach out to us at or call us directly at (555) 123-4567. Your satisfaction and enjoyment of our coffee are what matter most, and we’re committed to ensuring that continues.

    Thank you for your understanding and for being such an important part of the BeanCrafters Coffee Co. family. We look forward to sharing many more cups of coffee with you.

    Warmest regards,

    The BeanCrafters Coffee Co. Team

    Increase in Operating Costs Letter Sample

    Subject: Important Update Regarding Our Cleaning Service Pricing

    Dear Valued Clients,

    I hope this message finds you well. As the owner of SparkleClean Services, I’ve had the privilege of ensuring your homes and offices not only look their best but provide a safe and clean environment for you, your families, and your colleagues. Your trust in our team to maintain your spaces is something we value deeply.

    Today, I write to you with an update that we’ve worked hard to avoid but find necessary to implement. Effective September 1, 20XX, our cleaning service rates will increase by 5%. This adjustment is a direct result of rising costs in cleaning supplies, equipment maintenance, and the need to provide fair wages to our dedicated staff who are the backbone of SparkleClean Services.

    We’ve always prided ourselves on transparent pricing and exceptional service, and it’s important to us that we communicate changes like these as early as possible. Our goal remains to offer you the highest quality cleaning services without compromise, and this price adjustment will ensure we can continue to do so.

    Understanding that changes in pricing can affect your budgeting, we’re introducing a new loyalty discount program for our regular clients, which we hope will offer additional value to your continued patronage. Details of this program will be shared in the coming weeks.

    Should you have any questions or wish to discuss how this change affects your service package, please don’t hesitate to reach out. You can contact us at or call our customer service team at (555) 987-6543.

    Thank you for your understanding and continued support. We look forward to serving you with the same dedication and attention to detail you’ve come to expect from us.


    Jake Williamson

    Owner, SparkleClean Services

    (555) 987-6543


    The sample letters effectively communicate price increases to customers, balancing transparency with maintaining positive relationships. Each begins with a friendly greeting and clearly states the reason for the price adjustment, such as rising costs or maintaining service quality, fostering trust through openness. Detailed information about the increase, including its amount and effective date, allows customers to plan accordingly. To mitigate potential negative impacts, the letters offer incentives like discounts, loyalty programs, or the opportunity to purchase at current prices before the change takes effect. This consideration demonstrates the business’s empathy towards its customers and its desire to minimize inconvenience.

    Moreover, inviting customers to reach out with any questions underscores a commitment to open communication, reinforcing customer service values. Concluding with gratitude, the letters emphasize the appreciation for customers’ understanding and continued patronage, underlining the importance of the relationship even in the face of necessary price adjustments. The structured approach, offering a clear rationale, specific details, mitigating actions, and an open channel for dialogue, combined with expressions of appreciation, exemplifies how to maintain customer goodwill while addressing the need for price changes.

    Tips to Disclose Price Increase

    Here are some great tips that you should consider when disclosing price increases to your customers:

    • Recall what your goals are- Getting intentional with your goals means creating a clear connection between you and customer satisfaction. Remember the results the customers expected when they chose your products or services and write down what you have achieved.
      An example would be,


    Since February 2020, we have achieved;

    • More customers in need of Azithromycin
    • One more staff in the dispensing department
    • Demand for Gentamycin rose by 10%
    • 3 more clients from the United Kingdom
    • Follow-up A regular follow-up gives customers a chance to engage with you effectively. It is therefore advisable to send a follow-up email.

    “Greetings Harriet,
    What do you think of our new prices?
    Please get back to us if you have any questions. Thank you!”

    • Know when to move on- Not every client will be pleased by the changes in prices, which is why you need to try and justify reasonably. If you and the client still contradict each other, the best way to deal with the situation is to drop them and find better clients.
    • Directly communicate with customers- As an entrepreneur, it would be advisable to reach out to every customer and let them know about the change. Acknowledging your customers is a powerful way to show them that you have them in mind while making the decision. It would be unfair to your customers if you didn’t communicate directly with them about the price increase. They might drop you and opt for other sellers.
    • Tell customers in advance- Telling your customers in advance gives them time to process and weigh out their options. Ensure you give them at least 1-2 months‘ notice for your new rate to commence.


    During a pandemic, things get tough, and jobs are lost. A landlord might want to increase rent due to a rise in the expense of utilities; giving your tenants a heads up a month or two before may save them the agony of having to end up on the streets.

    • Ensure quality will also upgrade with prices rising- A customer who has been purchasing a certain product for years at a specific price will be confused when they hear about a sudden rise in the price of the product. Remember, higher prices attract better quality products and services to clients. You will have to convince the customer that with an increase in price, there is an improvement in the quality of the product.
    • Inform the organization before the customer- The customer might want to consult with one of the frontline workers about the changes in the company. It would be a serious case if your employees were not made aware of the price increase and ended up charging the clients the original price of the product. Your sales will be different from what you expected, and your next step will be to accuse your employees. Therefore, to avoid being in such a situation, it would be advisable for them to learn and contribute to the reasoning and logistics behind the changes in price.
    • Be available for customer queries- An entrepreneur looks forward to providing the best relationship with his/her customers. Let your customers know that they can communicate with you or anyone in your company at any point in time about any concerns regarding the price increase.

    Frequently Asked Questions

    Which ways to opt for informing the customer about price increase without losing them?

    The best way to let your customers know about an increase in price is by sending an email to their respective addresses. It is also advisable for you to remember that you need to get comfortable with raising your rates if you want a successful business.

    What is the purpose of the price increase letter?

    It informs your clients about a price increase for a commodity or service. It is considered a kind gesture towards your clients to keep them informed of the changes happening in your company.


    Telling your loyal customers about a price rise can be delicate. You will be worried about how they might react or even reject it and drop you as a seller. All in all, you must remember that by the end of the day, you will need to run a profit-making business. You must handle the issue of price increase authentically to ensure that the customers understand the situation and are willing to cohere to it.

    About This Article

    Ryan Powell
    Authored by:
    Professional Business Management, Quality Assurance, Human Resources, Supplier Management
    With over 15 years in professional business management and an additional 4 years in e-commerce, Ryan Powell has distinguished himself as a strategic leader, steering sites to generate revenues exceeding $100 million. His approach emphasizes proactive problem-solving and profit optimization. Personal attributes such as strong organization, time management, and team collaboration bolster his professional portfolio. Ryan's experience spans leadership roles from Supervisor to General Manager, with notable contributions in Tier 1 Aerospace sectors, partnering with industry leaders like Boeing and Raytheon. He's adept at quality assurance, aligning with AS/ISO 9001 standards, lean methodology, financial management, including P&L oversight, and human resource strategies that prioritize employee retention. Ryan's comprehensive skill set positions him as an invaluable asset to growth-focused organizations.

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