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Price increase letter: creation rules & examples

article author
Marina Yunevych
 
 ・  Updated 03 August 2023

Have you feared informing your customers about price rises because of the possibility of losing their loyalty? Don't be scared! This is a normal part of business growth, and many customers are ready for the fact that the rates will not stand in one place all the time.

The main thing is to send a price increase notice with the right content, not day-to-day, and to observe some other subtleties. The correct approach to these emails gets a positive response from clients.

So how do you break the news about it in a way that keeps recipients satisfied? Here are some tips and rate increase letters to help you effectively communicate the change.

How to tell customers about the price increases?

To tell customers about price increases correctly, you need take a personalized approach. Address the customer by name, mention a couple of details that will relate specifically to them - the successes associated with your product, the benefits of new features that will be useful to this particular user, etc.

Learn more about the client - in addition to seeing the actual data in the CRM - use features with the in-depth search of persons/company info, view their professional social networks to update data, and communicate with the audience based on their interests now.

Enrich your existing list with new data
Update your customers' data with the Enrich tool to take a more personalized approach to your audience, get fresh data about them, and not lose their loyalty.

Also, you can include a completely new price list for your service/product, and be sure to include the date when the planned rate rises will occur.

Don't forget the reasoning, the fact that this change has to be reasonable. It's not like a subscription costs $50 a month to use tools/get services, and suddenly its price goes up a million times. Then you risk losing your clients forever, ruining your reputation.

What should be the perfect letter of a rate increase?

The ideal price rise letter should be short, no more than a few paragraphs. This email should be more extensive and have arguments about why this happened.

Format - no more than a few paragraphs (like in the examples below) will help the recipient quickly understand the letter's key points and take the necessary action.

Rate increase letter may include the following elements:

  • A clear subject line that indicates the email is about a rate rise.
  • A brief introduction expressing appreciation to the customer.
  • A straightforward statement of the price growth and the date.
  • An explanation of the reason for the increase.

How to raise prices without losing customers? Tips & tricks

Follow a few tips to create a price increase letter:

  • Inform in advance
  • Specify «Why»
  • Extra benefits at the old price
  • Without going overboard apologizing

Increase price notice creation: Tip #1. Inform in advance

This is simply one of the essential rules. Communicate rate increases as soon as you decide and before the new prices take effect. Give your clients the opportunity and time to adjust to the new conditions, reconsider their budget or find an alternative.

Create several types of mailings on the topic. For example, the first email will be about the upcoming changes, the second notice of price increase with new prices, and the rest several - a reminder about it, reminding them a week or a day in advance.

So what might a rate increase reminder look like? 👇

Short sample letter to inform customers of the price increase:

Subject rate increase letter to clients: Subscription prices will change in 7 days

Hi [Customer name],

This is a quick notification to remind you that prices for the tariff plans will change in a week. 

Hurry up and switch to the tariff plan that suits you at the old price.

Button: Update the plan

Questions? Just reply to this email!


Thank you,

[Company name]

Creating notice of price increase: Tip #2. Specify «Why»

Emails like these are sent to clients with clear, concise communication that outlines the reason for the rate rise and how it affects them. 

Also, make sure to reassure clients that service quality will remain high and offer them a discount or some other incentive if they choose to stick with your business. 

Omer Usanmaz, CEO and Co-Founder of Qooper: 

«We recently communicated a price hike to our customers through email, and we wanted to be sure that the message was both transparent and positive. We took time to explain why the increase was necessary, emphasizing the value clients would still get from our product or service even with the higher cost. 

We also offered them the opportunity to respond meaningfully before implementing the rise, such as offering them discounts if they committed to a longer-term contract or purchased in bulk.

Additionally, we highlighted recent customer reviews and explained why we are still a better value than competitors or offered additional services they may not have known about before. We were pleased to see that our clients responded positively and showed loyalty despite the сhanges, proving that thoughtful communication can go a long way.»

Creating price increase emails: Tip #3. Extra benefits at the old price

Use this news as a chance to boost profits by offering customers incentives, such as a deadline to switch to a yearly plan at the previous price, before implementing new prices.

You can create a sense of urgency and drive sales by providing clients with a limited time window to purchase an annual plan at the previous rate before new prices get effective.

Additionally, this approach can help foster client loyalty by offering them a benefit for their continued use of your product/services. 

Creating letters to increase prices: Tip #4. Without going overboard apologizing

Raising prices is a common practice for each company, but apologizing for it diminishes the perceived value of the product in the eyes of customers. (You need to apologize by increasing the rate when you tell them about price changes that day.)

A company can maintain its trust and satisfaction by communicating the reasons and the continued value clients will receive. Just saying «I'm sorry» doesn't help in this case.

How to announce a price increase to clients? Top 10 templates

These templates of price increase letters will show you how to address your clients and not lose their loyalty. You can even use these with your AI writing tools.  Just copy, paste and edit to suit your company and the reason for the rate rise.

Price increase notice template #1. With an expression of gratitude 

Subject of price increase notice: New pricing structure for our  [Products/services]

Dear [Customer Name],

We would like to express our gratitude for being a valued and regular customer of [Company name] over the years. Your satisfaction has always been of great importance to us, and we hope that we have been able to provide you with excellent client service and products.

We wanted to inform you that due to [reason/s], we will be adjusting the price of [Product/service]. Starting [Date], the rate will change from [Amount] to [Amount] per month.

Please note that this change will allow us to continue providing better service to you and our future customers. 

If you have any questions or concerns, please do not hesitate to contact us. Our team will be more than happy to assist you.

 

Thank you again for your continued support, we truly appreciate it.

[Name and Job Position]

[Company name with link]

Sample letter of price increase #2. Focus on new features & benefits

Subject of increased price notice: Making changes for a better experience

Dear [Customer Name],

Thank you for choosing our [Product name] and for placing your trust in [Company name]. I am writing to inform you that we will soon make some changes to our pricing strategy.

Due to [Reason], we have had to review our pricing strategy to ensure that [Product name] continues to provide the best value and experience for our customers. We are introducing new features such as  [New features 1/2/3] .

It's all to make the [Product name] even more useful and efficient for our customers.

As a result, we will be increasing the subscription fee by 10%. However, this increase will also come with additional benefits such as [benefit 1], [benefit 2], and [benefit 3].

You have the right to consider if you would like to switch to a new plan, and you have the option to do so. For the next [Time period], you can continue using [Product name] at the standard price. The new plans will be launched on [Date].

Please don’t hesitate to contact us if you have any questions or concerns.

 

Thanks,

[Name and Job Position]

[Company name with link]

Increase price notice #3. Add about customer successes

Subject of increased price notice: A message about the changes in pricing 

Hi [Customer Name],

We are thrilled to hear that you have [Achieved specific results] with [Name of product/service]. Your success is our success, and we are glad to have played a role in helping you reach your goals.

We will change our pricing and subscription plans to continue providing great results for customers like you. The changes will take effect from [Date] and are being made to reflect the services our clients need most. You can view the updated plans and pricing here: link

As a valued customer, we would like to extend our current rates to you until [Date].

If you have any questions or concerns about the changes, please do not hesitate to contact us. Our support team is available via [Email address] or chat and will be happy to assist you.


Thanks,

[Name and Job Position]

[Company name with link]

Price increase sample letter to customers #4. Advance notice

Subject of price increase notice: Price increase: An update on our [Products/services]

Hi [Client name],

We are excited to share our plans for 2023 with you. Next month, we will introduce 5 new integrations and a highly requested feature, [Feature]. To continue offering the best services, we will increase our prices by at least 10%.

On [Which day], we will email you the new pricing and a special offer for your current plan. 

As always, we appreciate your feedback, so please let us know if you have any questions or suggestions.

 

Thank you for being a valued customer.

[Name and Job Position]

[Company name with link]

Letter to customers about price increase #5. Extra special offer

Subject of price increase notice: Changes in pricing plans

Hey [Customer Name],

Hope you are having a productive day/week.

We are making some important changes to our company and product offerings. Starting next month, we will increase our prices by 10% from [Date].

You can see the future prices of our pricing plans in the insert.

As our valued customer, I would like to make you a special offer. If you upgrade to an annual subscription before the end of the month, you can get it at the old price plus a 10% discount. 

Take advantage of this opportunity to save money. 

Button: Upgrade now.

If you have any questions, please contact us via reply or chat. 


Thanks,

[Company name] team

Price increase email template #6. For free users 

Subject of price increase notice: New prices - new opportunities! Don't miss out

Greetings [Client name],

Just so you know, as of [Date], we are introducing new plans that will better reflect the needs of our customers, as well as allow us to continue to improve [Product Name] and introduce new features.

As a free plan user, you will not be affected by these changes, but I thought you might be interested to know that if you purchase any paid plan before [Date], you can keep the current prices forever (as long as you cooperate with us).

Button: Upgrade tariff plan.

If you have any questions –  click the «Reply» button, and I'll do my best to help!


Best regards,

[Company name] team

Price increase sample letter to customers #7. Explanation of need 

Subject of price increase notice: Upcoming Service Price Increase

Greetings [Name],

We wanted to inform you that as of [Month, Day, Year], we will be adjusting our prices by [Percentage]. 

This change is necessary due to

  • [Reason 1]
  • [Reason 2]
  • [Reason 3]
  • [Reason 4]

At [Company Name], our goal is to provide you with the highest quality [industry] services and this price rise will allow us to continue meeting these standards.

If you have any questions or concerns, don't hesitate to reach us at [Email Address], [Phone Number], or [Website].


Best regards,

[Company Name]

Sample price increase letter to customers #8. With all advantages

Subject of price increase notice: New prices - new features! 

Dear [Customer name],

I'm contacting you because the pricing for using our products will change in a month. You can see the future prices in the insert of this email. 

New prices - new features! 

So what will be included in the upgraded package of each plan?

  • [Advantage 1]
  • [Advantage 2]
  • [Advantage 3]
  • [Advantage 4]

If you have any objections or comments on future product enhancements, just email us at support by clicking here.


All the best,

[Your Company]

Sample email about price changes to plans #9. Polite price increase notice

Subject  price increase notice: An increase in our subscription prices will [Date]

Dear [Customer name],

Hope you are having a productive week. 🥰

I'm reaching out to you because the pricing for using our products will change in a month. You can see the future prices in the insert of this email. 

I'm letting you know ahead of time so that you can transition smoothly to the new pricing category by understanding how to use the new advantages in your business. Speaking of which.

  • [Benefit 1]
  • [Benefit 2]

I'm sure you're making the most of these new opportunities. I saw your results on LinkedIn in the new post and was impressed. I'm excited about your progress and wish you new heights!

If you have any questions –  click the «Reply» button, and I'll do my best to help!


Have a great day,

[Your Company]

Note. Don't forget to check the validity of the addresses before sending so that your price change notifications reach the customers. If users don't have time to change their email to a valid one and they miss this email, an unpleasant situation will arise for both parties.

Bulk email verification
Check all customer emails at once for relevancy in seconds and send out only actual email addresses. This will save the reputation of your domain, increase the opening rate, and of course, the response rate.

Summary: How to write a price increase notice right

  • To tell customers about price increases correctly, you need to take a personalized approach. Address the client by name, mention a couple of details that will relate specifically to them - the successes associated with your product, the benefits of new features that will be useful to this particular user, etc.
  • The ideal rate rise letter should be no more than a few paragraphs. 
  • To raise prices without losing clients, you need to send an email explaining why the price growth occurred, with a statement of your product’s value, to provide perhaps some bonuses.