Price Increase Letter (Template & Samples)

A Price Increase Letter is a professional document in which a price increase for goods or services is announced to customers. Writing a letter informing your loyal customers, you must increase the prices of the products or services they purchase is never easy. Although most customers understand that prices cannot stay static over long periods of time, price increases can create problems for them. A well-written price increase letter can soften the inevitable blow.

The most important part of raising prices is to make sure everyone in your company who works with customers is informed about the specifics of the increase. The best way to do this is to circulate the price increase letter to sales and customer service employees, as well as executives. This should be done before customers are informed so that everyone involved has the information they need to help customers understand the increase.

Important: The primary purpose of a price increase letter is to notify all parties concerned about a price increase and to explain the reason behind the increase. It is essential to let your customers know that the increase cannot be avoided if you are to maintain the quality of the products you provide.

Write in a professional tone and print the letter on the company letterhead. Give a detailed explanation of the increase so there can be no misunderstanding. For example, if the prices of an entire product line is to be increased by 6%, make this clear. Any exceptions to the rule should be noted.

Be clear, concise, and explain if possible. Here is what to include:

  • Basic reason for the price increase
  • Date the increase will take effect
  • Final date to purchase the products at the lower price
  • Specific increase amount
  • Specific products affected
  • Any exceptions to the rule
  • A show of appreciation to the customer
  • An invitation to reach out with questions or concerns

Note: Make sure every customer who will be affected by the price increase is notified with a price increase letter one or if possible two weeks in advance. Make sure to mention the date when the new price will be applied.

Price Increase Letter Format

Here is a basic format for a price increase letter.

{your name}

{your address}

{date}

{recipient name}

{recipient company}

{recipient address}

Dear {recipient name}:

Please be advised that {Company name} will be increasing the prices of {products or product lines} by {percentage} effective {date}. This increase is necessary due to {reason}. Be assured we have enacted the smallest increase possible while continuing to ensure the quality of all our products.

Any orders placed before {date of increase} will be honored at the current price. We hope you will take advantage of this opportunity and place your orders soon.

{Company name} appreciates your continued business as we go through this period of change and growth. If you have any questions or concerns about the increase, please feel free to contact us. Our sales and customer service teams are happy to discuss this situation with you.

Best regards,

{your signature}

{your name}

Sample Price Increase Letter

Here is a sample letter based on the above format.

Renee Cooper

Anderson Metal Fabrication

10028 East Meridian

Sherwood, MI 48776

November 14, 2039

Nathan Brooks

Pace Aircraft Repair

400 West Alliance Street

Sherwood, MI 48767

Dear Nathan:

Please be advised that Anderson Metal Fabrication will be increasing the prices of all Stainless and Titanium fabricated parts by 6% effective January 1, 2040. This increase is necessary due to increased raw material prices. Be assured we have enacted the smallest increase possible while continuing to ensure the quality of all our products.

Any orders placed before December 31, 2039will be honored at the current price. We hope you will take advantage of this opportunity and place your orders soon.

Anderson Metal Fabrication appreciates your continued business as we go through this period of change and growth. If you have any questions or concerns about the increase, please feel free to contact us. Our sales and customer service teams are happy to discuss this situation with you.

Best regards,

Renee Cooper

Renee Cooper

Price Increase Letter Examples and Templates

Being required to notify your customers of a price increase is uncomfortable. Having a basic format for this situation can make the job a bit easier. We have provided a sample letter based on the above basic format to help you understand how the format can be used to create a considerate and explanatory price increase letter.

Price Increase Letter to Client

A Price Increase Letter to Client is a professional document informing a client of an increase in price for goods or services. This letter should be clear and explanatory, while maintaining a considerate attitude. Let your client know why you must increase your prices.
Details
File Format
  • MS Word

Price Increase Announcement Letter

A Price Increase Announcement Letter is a professional document informing a client that you must increase the price of the products or services they purchase from you. This is an important letter that can make the price increase a bit easier to take. Let your customers know that you are attempting to keep their prices as low as possible while maintaining quality.
Details
File Format
  • MS Word

Price Increase Notice Template

A Price Increase Notice Template is a basic format, or template, for a price increase notification letter. We have provided such a template above, in the basic format section of this article. This template can be used to create an effective and considerate price increase notice.
Details
File Format
  • MS Word

Complaint Letter for Price Increase

A Complaint Letter for Price Increase is a letter written by a client or customer to complain about a price increase. These letters should be forwarded to the sales and customer service departments in your company. These employees are able to explain the price increase and discuss it with the customer or client.
Details
File Format
  • MS Word

Conclusion

Every company must, at some point, require an increase in the price of the goods or services they provide. This difficult time of change can be met more efficiently if everyone is informed about the price increase in advance. Price increase letters should be circulated within a company before customers receive the letter. Sales and customer service employees will then have the answers at hand when customers reach out with questions and concerns about the increase.