Announce a Price Increase • Example Letters, Guides and Samples


This letter delivers unwelcome news, so you should soften the blow by showing how the change is justified and that you appreciate the customer's understanding. This is a good time to express how important customer satisfaction is to you.

How to write this announcement letter:

  1. Announce the price increase, but try to soften the blow to the customer.
  2. Express good will and appreciation.

Example Letter #1


We regret that rapidly rising costs for raw materials necessitate our raising the price of all footwear 10%, effective September 1. We have made every attempt to avoid the increase, but we refuse to compromise on quality. This is our only recourse. We think you will agree that the quality of Doe shoes should not be sacrificed. We look forward to another year of association with you.

Example Letter #2


The price of cars imported from Japan will rise approximately $600 this fall. The higher cost of steel has forced this increase. Still, excellent workmanship and retained value over a number of years make these vehicles good investments. We appreciate your past patronage and look forward to serving your future transportation needs.

Example Letter #3


Beginning November 1, we will enact an across-the-board four percent price increase. Our efforts to compete with our high volume competitors have eroded our profits considerably.

We hope to continue our excellent relationship with our clients, and assure you our quality of service will reflect a similar increase.

Example Letter #4


For the last three years, I have charged the same hourly rate for my services in spite of rising office expenses and salary increases. As much as I would like to maintain my rates for another year, I find that I must increase them to provide quality legal services to my many valued clients. Effective November 1, 2019, my new hourly rate will be $150.

I value you as a client and want to continue serving you. If you have questions or concerns about this increase, please give me a call.

Example Letter #5


For several years Doe has worked hard to bring you and your family very reasonable prices on quality footwear. We realize that in today's world it is sometimes hard to make ends meet. We do everything we can to bring you great values and stretch your hard-earned dollars.

We will continue to make this effort. But due to several large price increases, we need to increase our boot prices fifteen percent. We hope you feel this is still a great value, and we appreciate your patronage.

Example Letter #6


I would like to thank you for your patience and understanding during my recovery. I understand that you may have experienced some frustration with my inability to return phone calls.

With this in mind, I am restructuring my practice to accommodate your needs. To this end, I am bringing in additional staff. Beginning September 5, we will be joined by John Doe, a CPA from Springfield, Kansas. He has been working under Jane Doe, my former employer, and will add several years' experience to the staff. I know you will find him confident and very helpful.

With John's help, I look forward to being more accessible to you in the future.

Example Letter #7


Please accept this letter as notification of a slight rate adjustment, effective March 1. The adjustment is a result of Consumer Price Index changes and increased transportation costs over the last twelve months.

Fortunately, investments in efficient equipment and improved technology will enable us to keep rate increases at a minimum, today and in the future. A summary of rate changes is located at the bottom of this letter. We anticipate no additional rate adjustments for the next full year.

Should you have any questions regarding our services, please contact our office at 555-5555. Customer service or your Doe sales representative will be happy to help you. Thank you for understanding that this price increase means that we can continue to maintain the superior standard of our products and services for the coming year.

Example Letter #8


For years Doe has worked hard to bring you and your family very reasonable prices on quality pens. We do everything we can to bring you great values and stretch your office dollars.

We will continue to make this effort, but due to several large price increases, we will need to change our pen price to 59 cents. We hope you feel this is still a great value and we appreciate your support.

Write Your Letter Step-by-Step

1 Announce the price increase, but try to soften the blow to the customer.

Sample Sentences for Step 1
  • In our continuing attempts to provide the best service possible, we have installed a high-speed multicolor press. This new capability is forcing us to increase prices by 5%, effective June 15. I have enclosed an updated price list. Orders received before that date will be filled at current prices.
  • As you know, we have made every effort to avoid price increases, even though the price of raw materials has gone up. With this last increase, however, we must raise the price of prefabricated sheds by 10%. This increase will affect all newly constructed sheds beginning June 15. Present inventory will be sold at current prices.
  • As a consequence of escalating oil prices, we must raise the price of all plastic plumbing products 8% at the beginning of the new year. We regret having to take this action and hope to be able to return to earlier prices when oil costs stabilize.
  • Effective June 15, the price of all Doe soft drinks will increase five cents per unit. We have tried to avoid the increase, but the rising cost of sweeteners forces us to do so now.
  • The harsh weather in California has produced severe shortages of green vegetables, causing our prices to go up 20%. We trust that this is a temporary condition and that we can return to lower prices with the next harvest.
Sample Phrases for Step 1
  • a modest rate increase
  • a price increase on
  • additional operating expenses
  • advance notice
  • along with the increased price of
  • are always reluctant to raise prices
  • effective immediately
  • has forced us to
  • have enclosed an updated price list
  • have found it necessary to adjust
  • hourly rate increase of
  • in order to continue to
  • increase will affect
  • increased prices from our suppliers
  • increased price of raw materials
  • is only fair to warn you
  • is forcing us to
  • keep prices as low as possible
  • keep our prices competitive
  • may be more increases in near future
  • offering the highest quality
  • our continuing attempts to
  • price increases from almost every supplier
  • prices will increase
  • prices on the following items
  • proposed changes in fee structure
  • rapid rise in labor and operating costs
  • the good news is
  • this price adjustment
  • to put this increase in perspective,
  • to keep the price as low as possible
  • to provide the best service possible
  • to produce a high-quality product
  • to increase our prices by
  • will be filled at current prices
  • will discuss the proposed increase
  • will guarantee shipment at the old prices

2 Express good will and appreciation.

Sample Sentences for Step 2
  • We appreciate your understanding and are confident that you will find the enhanced quality of our printing to be worth the increase.
  • We value you as a customer and hope to meet your needs for years to come.
  • Thank you for your understanding patronage during this market fluctuation. We will inform you immediately of any future changes.
  • Thank you for buying Doe drinks. We trust you agree that these beverages are still a wonderful bargain.
  • We will do our best to work with growers who can produce high quality produce at reasonable prices.
Sample Phrases for Step 2
  • appreciate your understanding
  • appreciate your continuing patronage
  • appreciate the opportunity to
  • are confident that you will find
  • are still a wonderful bargain
  • cater to the discriminating customer
  • continue to enjoy our volume discounts
  • finest quality available
  • have been a loyal customer
  • hope to continue to
  • is a pleasure to serve you
  • keep our service impeccable
  • thank you for
  • this market fluctuation
  • to keep prices reasonable
  • trust you will agree that
  • value your business
  • value you as a customer
  • well worth the increase
  • will do our best to