Free Price Increase Letter Template

Price Increase Letter Example

Brightside explains its new wholesale coffee price and when it applies to orders. Below, you can adapt separate wording for business clients and consumers, with guidance for different pricing arrangements.

What Is a Price Increase Letter?

A price increase letter tells a customer that a product or service will cost more and explains when the new price applies. It gives them a written record they can use to budget, place their next order, or discuss the change with you.

A useful letter answers three questions quickly: What is changing? When does it change? What should I do next? If you are proposing a new price for an existing agreement, make that clear and ask for the response you need.

Price Increase Letter Wording for Business Clients

Use this template for a business customer. Replace every [placeholder], add a useful account or order reference, and explain which orders or agreement the new price covers.

Delete the reference or enclosure line if it is not useful. If you do not need a reply, replace the request and deadline with a simple invitation to contact you. For a proposed renewal, use: “For the renewal term beginning [Date], we propose a rate of [Amount] per [Period].” Ask the customer to confirm before proceeding.

Price Increase Letter Wording for Consumers

Use the product or service name your customer knows, followed by the new price and start date. This version is for future purchases. Check the terms before adapting it for an ongoing service or renewal.

Only offer options you can provide. For a renewal, name the renewal date, price, and available choices instead of treating it as a new purchase. Remove the response deadline when no action is needed.

A Complete Wholesale Price Increase Letter

In this fictional example, Brightside Coffee Roasters is changing the price of future wholesale orders. The product stays the same, and orders placed through October 31 keep the current price. The dates illustrate this scenario, not a standard notice period.

The old and new amounts make the change clear. The increase is USD 6 per bag. If a percentage is useful, USD 6 ÷ USD 68 × 100 is approximately 8.8%. Keep the new amount visible even when you also include a percentage.

How to Write a Price Increase Letter

Have your current price, new price, and agreed terms beside you. Follow the six parts of the letter, keeping the price change easy to find.

Before You Send Your Price Increase Letter

Read the finished letter beside the current agreement or price list. Check the details a customer will use to plan their next purchase:

• The old and new prices use the same currency, quantity, and billing basis.
• The effective date matches the orders, service dates, or renewal term described.
• The change and timing have been checked against agreed terms and applicable requirements.
• Existing orders, quotes, and any temporary rate hold are explained accurately.
• The reason is truthful, the contact details are correct, and any requested reply has a clear date.
• All [placeholders] are replaced and every stated enclosure is included.

Mention the product or service and the effective date in your follow-up. Keep any agreed changes with your records, and update the next quote accordingly. An opened letter does not show that the customer has agreed to a new price.

Decide When the New Price Starts

Start with the pricing and notice terms you have already agreed. Check any requirements that apply to your business before choosing a date. A letter can explain a change or propose one, but sending it does not by itself replace an agreed price.

Next, think about how your customer buys. A business client may need time to update a purchase order or budget. A household customer may need to decide before booking the next visit. Write out the effective date and tie it to a specific event, such as a new order or the start of a renewal term.

Keep Existing Customers on Their Current Price

If existing customers can keep their current price, say who qualifies and for how long. “Your price stays the same” is too vague when you mean only until the end of the current term.

For example: “Your current rate of [Amount] per [Period] will remain in place through [Date]. For the renewal term beginning [Date], we propose a rate of [New Amount] per [Period]. Please let us know by [Response Date] whether you would like to renew.”

Use a Reason You Can Stand Behind

Explain the real reason in a sentence or two. Name the cost that increased or the extra work now included. If the service is changing too, describe the change so the customer can compare the old and new price.

For example: “Our cleaning supplies and laundry costs have increased, so our price per visit will change from [Old Price] to [New Price].” If you are adding work, try: “The new monthly fee includes [Additional Service], alongside [Existing Services].” Use either explanation only if it matches your business.

Adapt the Letter to the Way You Charge

Show what the price covers, such as one delivery, an hour of work, or a month of service. Then explain when the new rate applies:

Products Sold to Another Business

Name the product and unit, then say whether the price is based on the order date or delivery date. If several products are affected, include a readable price list and identify it in the letter.

Recurring Services for Households

State the new price per visit and the first service date it affects. Explain the treatment of visits already booked or paid for, and give a contact for questions about the schedule.

Hourly Work and Monthly Retainers

Separate the hourly rate from a fixed project fee. For a retainer, show the period and services covered by the new fee. Make the proposed renewal and required reply clear before starting work on changed terms.

Membership or Subscription Renewals

Name the renewal date, new price, and options available under the arrangement. Explain how the customer can contact you or make their choice. Do not add automatic renewal or cancellation wording that does not match your actual process.

Keep the Letter Easy to Read

For a US business letter, use US Letter paper, readable 11- or 12-point type, and clear paragraph spacing. Write the month out in dates, use a suitable greeting and closing, and leave room for a signature above your typed name.

Docelf uses a slightly modified block format. The date and reference sit to the right, while the recipient details and body start on the left. The business letter format guide explains the layout, and the greetings and closings guide helps you choose an opening and sign-off.

Common Price Increase Letter Mistakes

• Giving only a percentage: State the new amount and what it buys so the customer can use it.
• Saying “next month”: Use a full date and explain which orders or services it affects.
• Leaving old commitments unclear: Address accepted orders, valid quotes, prepaid work, and current agreements where relevant.
• Overexplaining the reason: A brief, honest explanation is easier to follow than several paragraphs of justification.
• Offering an option you cannot provide: Check discounts, alternative plans, or rate holds before mentioning them.
• Hiding the next step: Say whether you need a reply, a revised order, or simply want to invite questions.

Price Increase Letter Formats and Resources

Use the copy icon above your chosen letter to copy its wording into a Word or Google Docs template. You can also write your letter online, then print it or download a PDF.

• Business Letter Template Formats
• Word Business Letter Templates
• Google Docs Business Letter Templates
• Sample Business Letters

Related Letters and Quotes

A price increase letter explains future pricing. For a specific new order, use a quote template to show the offer and price. If the customer owes money for past work, the amount due belongs in a separate payment letter.

• Collection Letter: Follow Up on an Unpaid Bill
• Demand Letter: State a Payment Request
• Quote Templates for the Next Order
• All Business Letter Templates

Price Increase Letter FAQs

• How do I tell customers about a price increase?

  Put the new price and effective date near the start. Explain the reason in a short, truthful sentence, say how existing orders or agreements are treated, and give the customer a contact or next step. Thank them without burying the change in a long introduction.

• How much notice should I give for a price increase?

  Start with the notice and pricing terms in your agreement and check any requirements that apply to your business. Then allow time for the customer’s budgeting or ordering process. A sample date is not a standard notice period, and sending a letter does not by itself change a price you have already agreed.

• Should I include the old price and the percentage increase?

  Show the current and new price on the same basis, such as USD per hour or per five-pound bag. A percentage can be useful, but include the actual new amount too. Calculate the percentage as the increase divided by the current price, multiplied by 100.

• How can I keep existing customers on their current price?

  Name the customers or orders covered by the rate hold and give its end date or clear conditions. Say what happens afterward. Avoid promising a permanent price if you only intend to hold it through the current contract or renewal term.

• What if a customer does not reply?

  If you asked for a response, follow up after that date and ask whether they have questions. Check the agreed next step before changing the work or price. A delivered or opened letter is not confirmation that the customer accepts the increase.

• Can I use this letter for both business clients and consumers?

  Yes. Use the business version when an account, order, or agreement reference helps the recipient. For consumers, use familiar product or service names and explain the next purchase or renewal clearly. Both versions should state the new price and when it applies.

• Can I print or download my price increase letter?

  Yes. Write your letter in Docelf, then print it or download it as a PDF. Use the copy icon above the letter wording to copy it, then paste it into a Word or Google Docs template.

Ready to Write Your Price Increase Letter?