7 Ultimate Tips to Write Price Increase Letter

What is a Price Increase Letter?

What is a Price Increase Letter?

The price increase letter is a customer service tool used by merchants to inform customers of a price change in goods or services. It is sent in order to allow customers an opportunity to purchase the product at the current lower price before the higher price takes effect.

It’s traditional for retailers and other service providers that provide long-term contracts for specific prices, such as cell phone providers and oil suppliers. To announce any future changes in prices several months in advance so their customers will have time to budget accordingly. Doing so also reduces customer complaints about any future increases because they were given. Advanced warning and had plenty of time to adjust their spending plans.

The price increase letter may be sent to several types of customers. Including individual consumers, business owners, and corporate buyers. Retailers use these letters not only to announce an impending price change. But also as a marketing tool to let customers know what new products they’ll be offering in the future.

Price Increase Letters Commonly Include the Following Elements:

1. Summary of Current Prices

The letter should include current prices and remind customers that they saved money when they purchased at those prices. For example, a library might point out that the subscription fee was $20 before and is increasing to $21 per year after Sept. 1st.

2. Expiration Date

The letter often informs customers that if they don’t purchase the product before the expiration date. They’ll have to pay the new price, which could be as much as 50% higher than the current price. For example, a customer who stopped paying for a subscription to an annual magazine. Now wants to resume might be informed that his subscription fees will rise from $20 per year to $34 each year after Jan. 1st, 2012.

3. Messaging of Increased PEYrice

The letter often includes other information about the increased cost or change in policies or services ahead of time. So that customers won’t be surprised by an immediate increase in their bill when it arrives at their home or place of business.

Price increase letters have been criticized as a customer-unfriendly practice, used as an outgrowth of the “push” model of customer service. The letter is often seen as an unfair surprise tactic by customers who were previously well advised by their merchant in the form of other marketing tools. Some customers find them to be rude and aggressive. While others feel they are reasonable given the fact that the merchant has no control over rising prices.

Why you Might need a Price Increase Letter?

A price increase letter is a letter that informs clients or customers of changes to the prices they are paying for goods or services.

It might also be referred to as a price change letter, for example in a US context. The letter needs to clearly state what the change is and how it impacts the customer. For example, if an item has gone up to $2, this means it will now cost $10 instead of $8 so your customer won’t be surprised when they open their bill.

Here are some Price Letter Benefits:

1. It is Aimed towards whoever it is Necessary

A price increase letter explains the points that are being changed, including the new prices, who they are aimed at, and why they are necessary.
This helps you to ensure that your customer understands why there will be a change. It also allows you to highlight benefits and savings for customers, such as lower prices or a better value from self-service kiosks.

2. It Saves the Customers Time and Effort as well

A price that includes a letter can save your customers time and effort by allowing them to find out about any changes prior to their bill date rather than after as is required in some countries for old-style invoicing. As a result, you have greater control over when your customers receive the notification.

3. It Makes it Easier for your Business

A price include letter allows you to provide your customers with a simple and clear explanation of price changes, which also makes it easier for you as the business owner. This means that you have to spend less time preparing difficult and lengthy explanations. On why prices are changing or why certain items are going up or down in price. While most countries do not legally require a price include letter. These letters can be considered a best practice example of good customer service.


7 Essential Tips To Keep in Mind While Writing A Price Increase Letter

While you may be tempted to take some shortcuts in order to create a compelling and memorable pricing letter. You should keep these essential notes in mind before you start typing away. By doing so, your customers will get the best possible experience. It is by avoiding the common mistakes that envelop most pricing letters. Keep these tips in mind while writing your own pricing letter and then try not to cut any corners (or center-outs).

A renowned corporate attorney recently said that writing an effective price increase letter is one of the most important tactical tasks. A well-written and strategically positioned price increase letter can go a long way. It is toward improving your company’s economics.


Tips to Write an Incredible Price Increase Letter:

1. Be Relatable While Asking For A Price Change

Tips to Write an Incredible Price Increase Letter

In a nutshell, your goal should be to make your letter relatable and understandable to the customer. There are different ways to do this, but one of the most effective is by writing in a conversational tone. Most customers are more likely to read each and every word of your letter compared to a terse letter that makes them feel as though they are being spoken at instead of written.

2. Always Tend To Ask For the Best Approach

The best approach is actually one that will elicit enthusiasm (and yes; you can show emotion on occasion) and which requires the customer to respond positively. Showing your own enthusiasm is an added bonus.

3. Use Language that Makes Sense and Is Concise

If you find yourself writing a long price increase letter, consider breaking it into smaller segments – two or three pages are ideal. This will make the customer feel as though their concerns are being addressed right away and will help ensure that the customer keeps reading. This can reduce fear and hesitancy on their part.

4. Always Ask For Something in Return

This can be anything from a discount to a free service. It’s important for your letter to ask for something in return so customers don’t feel as though you’ve “robbed them blind” (thereby making them uneasy).

4. Keep the Tone Balanced

One of the most important things to remember about price increase letters is that you cannot just state a price and expect your customers to be on board. You must make your customers feel like they are treated fairly and not taken advantage of in any way. You do this by delving into key facts, as opposed to making them up, or implying something that doesn’t exist (you can’t change prices on a whim; it has to be based on certain factors).

5. Always Add A Time Frame

This can be as long or short as you like. The idea here is to provide a time frame (before and after the change) so that customers can transition seamlessly into the new price structure. Your customers will be more likely to accept the new prices if they are informed of the changes beforehand.

6. Proofread Several Times Over

It’s not enough to proofread once or twice over your letter, especially if you take shortcuts or abbreviate commonly used phrases and terms. You don’t want to confuse your customers. Proofreading several times over is essential because even a small typo can cost you sales later. On in the future when customers come across it.

7. Include A Personal Touch

Include A Personal Touch

While you may have a template, there is always room for that extra personal touch. For example, you can include a note or an add-on sentence asking the customer to contact you. Contacting you directly with questions, if they have any. You should also consider sending the customer a thank-you note after the customer. It has made their choice on how best to proceed with the letter.

This can be as simple as a handwritten note thanking them for their business. Over the years and asking them to please feel free to contact you. With any questions that they may have before making any choices. You want customers to feel as though you care about your relationship and want nothing but the best for them.


While you may be tempted to take some shortcuts in order to create a compelling and memorable pricing letter. You should keep these essential notes in mind before you start typing away. By doing so, your customers will get the best possible experience by avoiding the common mistakes that envelop most pricing letters.

There are many more tips to writing an effective price increase letter, but these are good starting points for any non-lawyer who wishes to write one. We do hope this information was helpful! Please leave your comments below!


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