How to Write a Price Increase Notification Without Losing Clients

Talking to customers about raising your prices? Yeah, it’s awkward. 

No one loves that conversation. But at some point, it’s gotta happen. Everything’s getting more expensive—materials, software, even just keeping the lights on. You’ve held off as long as you can, but keeping prices the same just doesn’t make business sense anymore.

The challenge is figuring out how to communicate the change without upsetting your customers or driving them away. A well-crafted price increase notification can help you deliver the message clearly and professionally, reducing pushback while maintaining trust.

In this article, we’ll show you the best ways to tell your customers about a price increase—plus, we’ll share some price increase letter templates you can tweak and send out right away.

First of all, what is a price increase letter?

A price increase letter is a formal message that informs your customers about upcoming changes to your business rates. It clearly states what’s changing, when the new prices take effect, and, if necessary, why the adjustment is happening.

You can send a price increase notification via email or as a printed letter, but no matter how you deliver it, it should give your customers enough notice whether that’s 30 days, 60 days, or another reasonable timeframe based on your industry and customer agreements.

Raising business rates is quite a delicate thing. You want to follow the best practices to do it the right way.

Here are some helpful tips to ensure your message is clear, professional, and well-received. 👇

Be clear and concise

When it comes to raising your prices, don’t beat around the bush. Customers will always appreciate honesty, and a confusing or overly apologetic message only raises more questions.

Your price increase should come from a position of confidence. It’s not something you need to justify at length—adjusting prices is a normal part of running a business. There’s no need to over-explain or frame it as a tough, reluctant choice.

Saying things like “We’ve gone back and forth on this, and unfortunately, we have no choice” makes it seem like you’re uncertain or looking for approval. But you’re not! You made a strategic decision that keeps your business sustainable and allows you to continue delivering value.

Explain the reason

While you certainly don’t have to write four paragraphs explaining why your rates are going up, giving a reason is a good practice. It helps customers understand the change and makes the adjustment feel more logical rather than arbitrary. People are far more accepting of a price increase when they know it’s tied to rising costs, improved services, or industry changes.

That said, your reason should be clear, concise, and relevant to your customers—not a drawn-out justification. If materials, software, or operational costs have gone up, say so. If you’re expanding features or improving service quality, make that the focus.

Recently, my accountant announced a price increase. Here’s what they wrote in their email:

They gave two main reasons for the change: rising operational demands and the need to maintain high-quality service. At the same time, they’re also expanding their services—now covering more types of tax filings and increasing the number of invoices they’ll process for clients. So while the price is going up, they’re also offering more support to match the new rate.

Give customers enough notice

Nobody likes getting hit with a surprise price hike. If you’re raising your rates, give your customers a heads-up so they have time to adjust. The sweet spot? 30 to 60 days' notice, depending on your business model.

If you bill monthly, let them know at least one full cycle in advance. If you’re on long-term contracts, give them even more time. 

People might not love a price increase, but they’ll appreciate a heads-up. And if they decide to stop working with you, the least you can do is give them enough notice to find a replacement.

Offer a way to lock in the old pricing

If you’re worried that some clients might walk away after the price increase, you can offer them a way to lock in the old pricing as a temporary middle ground. This gives them time to adjust while also making them feel like they’re getting a good deal.

The Entrepreneur's Playbook: A Guide to Scaling Sales for Your Small Business

A simple way to do this is to let them prepay for a set period at the current rate before the new pricing kicks in. For example, if your rates are going up in 60 days, you could say:

💬 “My new pricing takes effect on [date], but if you renew or prepay for the next six months before then, you can keep the current rate.”

However, don’t overuse this tactic.

If you offer it to everyone, you might end up stuck in a cycle where you’re constantly delaying price increases and never actually moving forward.

Instead, save it for important clients—the ones you’d really hate to lose or those who make up a significant portion of your revenue.

So, how do you break the news? There are a few ways to do it, and we’ll go through them one by one.

One important thing to keep in mind—even if you mention the price increase during a call, always follow up with a formal price increase notification in writing. You simply want to avoid any “I didn’t know” or “I forgot” moments. And you also want to keep a paper trail in case there’s any confusion later.

1. Update your website

If you have a pricing page, update it before the new rates take effect. Customers who visit your site should see the latest pricing right away, and if you offer packages or tiers, make sure all those details reflect the changes.

2. Send an email to your client base

Email is the most direct and professional way to announce a price increase. It ensures your customers get the message, gives them time to process the change, and allows them to reach out if they have questions.

When writing your email, keep it short, clear, and to the point—no one wants to read a long-winded explanation. Start with a friendly greeting, acknowledge the value your service provides, and state the price change upfront. If necessary, add a brief reason, but don’t over-explain or apologize too much.

Once you’ve sent the email, your clients might want to jump on a quick call to discuss the price change, especially if they have questions or need to adjust their plan.

Including a calendar booking link in your email makes it easy for them to book time with you. With YouCanBookMe, you can set up a dedicated booking page for client calls, allowing them to schedule a call at their convenience.

Make it easy for clients to ask about pricing changes with YouCanBookMe

Some clients may have questions—give them a simple way to schedule time with you and talk it through.

3. Update your booking page

If customers book appointments with you, make sure your scheduling page reflects your new pricing. The last thing you want is for someone to see one price on your website, book a session, and then get charged something different. That’s an easy way to create confusion (or worse, lose trust).

Price increase letter examples

Many business owners struggle with wording a price increase notice to customers. We’ve put together several price increase letter templates based on common reasons businesses raise their rates.

Don’t want to delve too much into the details? This simple price increase letter is perfect for when you don’t want to over-explain.

If you're enhancing your services by adding new features or improving the customer experience, frame your price increase as an investment in a better experience for the customer.

When inflation affects the cost of doing business—whether it’s rent, wages, or general expenses—this letter communicates the increase in a way that customers can relate to.

When inflation affects the cost of doing business—whether it’s rent, wages, or general expenses—this letter communicates the increase in a way that customers can relate to.

If demand for your services has increased and you need to adjust pricing to reflect your time and resources, this letter explains the change while reinforcing the value of your work.

The bottom line

Telling your customers about a price increase isn’t exactly fun, but it’s part of running a business. And how you communicate it makes all the difference. Don’t stress too much—just give enough notice and be prepared to answer questions if they come up.

The best way to do that? Set up a booking page with YouCanBookMe so customers can easily schedule time with you to discuss pricing changes.

Get started today at no cost!

FAQ

What is a reasonable price increase percentage?

There’s no one-size-fits-all answer, but a 5-10% increase per year is generally considered reasonable to keep up with inflation and rising costs. If you’ve improved your services, added new features, or upgraded materials, a 10-20% increase can make sense—just make sure your customers understand the added value.

The best approach? Raise prices gradually. If you wait too long, you might have to increase rates more drastically all at once, which can shock customers and lead to pushback.

When should you increase your prices?

You should consider raising your prices when operational costs rise, demand exceeds supply, or you’ve improved the quality of your offering. Other signs include consistent profitability issues, underpricing compared to competitors, or clients not valuing your service enough. Regular, smaller price adjustments (annually or semi-annually) are easier for customers to accept than sudden, large increases.

Is a 20% price increase too much?

A 20% price increase can feel steep, but it depends on how you position it and whether customers see the added value. A sudden, unexplained jump in pricing can lead to frustration, but if you communicate the reason clearly, give enough notice, and reinforce the benefits of your service, customers are more likely to accept it.

One way to soften the impact is through framing—instead of comparing the new price to the old one, compare it to market trends, rising costs, or the added value you’re providing. If competitors are increasing their prices by 25% and yours is only 20%, that context makes your increase more reasonable.

Also, consider testing different price points in small segments of your customer base to help gauge price tolerance before rolling out the increase fully.

Should you always announce a price increase to clients?

Yes—not telling your clients about a price increase would be a bit sly and could damage trust. Imagine receiving an invoice that’s suddenly higher without warning—that’s a guaranteed way to annoy your customers. Even if your price increase is small, always communicate it upfront with a price increase notification.