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Price increase letter format
April 15, 2019 Anniversary Wishes 4 comments

Let me begin by thanking you for your business over the past year. We have tried our best to provide the service that you deserve, while.

Letter - Notice of Price Increase

Welcome, you've arrived at an RP Emery & Associates Free Legal Document Page.

Writing well, just like speaking well is a valuable communication skill especially when it comes to business matters.

Business letters tend to be more formal and are often sent to people we don’t know. They need to convey the right tone - whether it be authority, disagreement, satisfaction or gratitude.

Whenever you write to a prospect, customer, supplier or an employee it is vital to present aprofessional document so you can make the right impression.

To get you started, we've prepared a list of standard business letter templates. You can use them freely for your own use with our compliments.

You are not permitted to reproduce these letters on any medium for public display or re-sale.

********** Document Starts Here ************


Dear ____________:

Due to the increase in raw material costs, we must unfortunately raise the cost of our merchandise to you.

We have avoided raising our prices for as long as possible, but we can no longer prolong the inevitable. We have enclosed our new price list for your review which goes into effect on [date] Any orders placed between now and [date of increase] will be honored at the lower prices.

We wish to thank you for your valued account and know that you will understand the necessity for this price increase.


********** Document Ends Here ************


Price increase letter sample: Raise your freelance rates with this letter

price increase letter format

Sample Notice letter to Clients for Price Increase

[These are Sample letter for rates revision format for business clients, customers, companies, hospitals etc. This letter is issued from a courier company for revising rates because of an increase in expenses. You can modify these formats as your requirement.]


Client Name…

Job Designation…

Company/Institute name…

Office Address…

Sub: Notice for Price Increase

Dear Sir,

With reference to the Telephonic/Email discussion with you over the price escalation I hereby requesting you to approve the rates that are submitted to your kind office bearing our letter dated (date). With the increasing price of construction machinery and material, it is necessary for us to work on the present condition of the market. As it is stated in the current contract agreement that the Client will be liable for paying the escalation cost to the contractor at a yearly basis. So it is advised to look the matter immediately and release the escalation amount so that further work to be carried out in time.

Your name…

Project Manager,



Another format,


Client Name…

Job Designation…

Company/Institute name…

Office Address…

Sub: Notice for Price Increase

Dear Client,

We proud to be achieving such great results for our clients. In order to ensure we can continue to provide exceptional service, we’ll be increasing the rates on all our packages effective (Date). Some of our packages will also be tweaked to reflect the services our clients most need.

You can see the new packages and pricing here [link]. We’ll be rolling this out to new clients from (Date), however, we wanted to give you the first month on your new package at the current rate [offer for longstanding clients] as a thank you for being such an amazing client!

This increase will enable us to continue to provide the quality and breadth of service you love. If you have any questions about the price increase or our new packages, don’t hesitate to let me know.

Yours Sincerely,

Your name…

Contact no…

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The price increase letter: how to tell clients you're raising your rates

price increase letter format

It can be nerve-wracking to send a price increase letter to your current clients. However, you're unlikely to lose many customers over a modest rate increase. To increase your rates without causing clients to reassess whether to do business with you, be straightforward and focus on adding value rather than justifying the increase. If you have a particularly valuable customer, consider issuing him a temporary extension of current rates.

Keep it Direct and Simple

Be direct and keep the letter simple. Your client's time is valuable, so don't beat around the bush. A short salutation, a statement that you will be increasing your prices by a certain amount on a specific date, and a note thanking your client for his business is really all you need. Don't apologize for the rate increase or ask for client input on the matter. If your client senses that you're tentative or unsure about the increase, he's more likely to push back and ask to keep his current rates.

Justify the Increase

You don't need to spend much time, if any at all, justifying your reason for the rate increase. The truth is that your customers aren't interested in the fact that you haven't increased rates in many years, that you're behind on bills, or that you're working extra hours to make ends meet. If you do want to justify the increase, stick to a simple phrase like, "Due to the rising cost of doing business, I'll be increasing my rates" or "To keep my prices level with the market, I'm increasing my rates."

Add Value

Rather than justifying the rate increase, consider adding value to your services to soften the blow of the rate increase. If you're increasing your prices because your products have improved in quality, explain how additional product features will benefit the client. If you've learned a new skill or can provide an extra service that doesn't take much time, include that in your letter. For example, a bookkeeper might say something like, "Since I've obtained enrolled agent status, I can now file your tax return on an annual basis for no extra charge."

Provide Lots of price Increase Notice

Give your clients a good amount of notice before sending the rate increase letter. Your client has probably experienced rate increases from other suppliers and vendors, but some departments need time to request a higher budget or need an approval from management to pay higher rates. Ideally, give your client at least a few months notice before raising rates. If the customer is particularly valuable or you do a lot of work for him, offer him an extension on the rate increase. For example, you could say, "My rates will from x amount to y amount on January 1st. However, since you're only of my most valued clients, I'm offering you a complimentary extension of current rates until March 1st."

This is in regards to the contract by us, Bates and Mates Cleaners Limited with your organization effective from 5th of May I would like to.

Announcement of Price Increase Template

price increase letter format

Sample application letter to company for refusing the increase in the bill, monthly bill, annual bill etc.

Refuse Price Increase Letter

Mr. Danny
Cable operator

Dear Sir,

I am using your services for one year and thank you for always getting good service. I always paid the monthly cable bill regularly, and never delayed it. But, yesterday I received the bill and was surprised to see increase in monthly fee. I wasn’t informed about this increase and I feel that I should have been informed a month before about this change.  If you make any uninformed changes in billing it would create inconvenience for everybody, as sometime we lack cash. So, I request you to charge same previous amount and start new rates from next month. Looking forward to your positive response in this regard.

Best Regards,


Refuse the Bill Rate Increase Email

Business Development Manager
TCS (Private) Limited
Gulberg III,

Respected Madam,

With reference to your Rates Revision Letter #328805 for 20% increase of courier service charges, I am requesting you to please don’t apply any increment against account of RSE.

As you know RSE is a charitable organization and this is not possible for us to revise rates at this time.  Furthermore previously the rates were revised on your letter but this time we are not ready for any revision. You may notice that we are also increasing our monthly shipments and this will be enough to compensate your increment.

Please withdraw this letter and don’t implement any price increase to our existing rates. We will be thankful to you.

Warm Regards,

Muhammad Samiullah
Manager Resource Development

Refusal Letter for Price Increase

Mr. Mark Andy, National traders

Respected sir,

We have come to know about your request of increasing the price of flex wire as they are in great demand now a days but we are sorry to inform you that we cannot consider your request because of the company’s policies. We cannot increase the price of goods just because it is high in demand and also we cannot change the price within 2 years as per the company’s policy of pricing. We respect your concerns but for now we are sorry to say this. Hope you understand our concerns. Thanks


M K Wirings


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Write this type of letter to complain to a company about a price increase that has taken place on their products and/or services. Include any pertinent details in.

price increase letter format
Written by Mikam
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