You know it’s time to raise your prices, but you aren’t sure how to write a price increase notice without losing customers. With rising costs, you need to adjust prices to stay in business, but you don’t want to upset your loyal customer base.
This guide is here to help. We’ll cover the best time to write price increase emails, price increase letter templates, and tips for how to inform customers of the increase while maintaining positive customer service. With sample emails and scripts for social media, get strategies for sending a price increase notice that keeps your customers supporting your business.
When to send a price increase notice
The best time to implement a price increase is when your costs have risen significantly and are eating into your profits. If operating costs like rent, supplies, and employee wages have increased by 10% or more over the last year, it may be time for a price adjustment to maintain your profit margins.
Before raising your prices, make sure your customer base can handle the increase. Have they received wage increases or economic boosts recently? Are they loyal customers who value your product or service? If so, they will likely understand the need for the price increase, especially if you clearly communicate how it will allow you to continue providing great service.
Now that you’ve made the decision to raise your prices, you need to decide when to inform your customers. The ideal time to announce a price increase is 60 to 90 days before the increase takes effect, to give them time to adjust to the news.
How to announce a price increase to your customers
While losing some customers is inevitable with a price increase, being proactive in communicating the good reasons behind it can help minimize customer loss. Here are some best practices for sending a price increase notice.
Address customers personally
Ideally, a price increase should be announced in a personal email or letter to your customers, sent separately from your regular marketing emails and newsletters. Be transparent about why prices are going up, like increased costs for high-quality materials or fair employee wages, and thank your customers for their continued support and business.
Let your customers know in advance
Announcing a price increase is never easy, but giving your loyal customers advance notice is key. Send an email at least 30 days, and preferably 60-90 days, before the increase goes into effect. Let them know you value their business and want to give them time to take advantage of the current pricing.
Provide price increase letter templates
Include downloadable price increase letter templates in your email that customers can use to inform their own clients. This helpful resource makes it easy for them to announce your price adjustment to the end users of your product or service. It’s a courtesy that will be much appreciated.
Explain the benefits
While increasing prices is rarely exciting for your customers, focus on the benefits. For example, the additional revenue will allow you to invest in new features, provide faster customer service response times, or extend service hours. Frame the increase in a positive way by emphasizing the added value.
Offer incentives
Giving your customers an incentive to stick with you, even after a price hike, is a smart strategy. You might offer a discount on their current subscription, a free trial of a premium feature, or extra months at the current rate if they renew before the increase goes into effect. Be sure to highlight that the increase only impacts new or renewing services/subscriptions.
Price increase letter templates and examples
Announcing a price increase letter to customers can be tricky without losing loyal customers. The key is to be transparent about your costs increase, provide advance notice, and continue offering great customer service.
Here are some price increase letter templates and examples to get you started:
Price increase letter template
“Dear [Customer],
I wanted to let you know that effective [date], I will be adjusting my rates for [product/service] to [new price]. My operating costs have increased over the past year, and this adjustment will allow me to continue providing you the high level of service you have come to expect.
You have been a loyal customer, and I value our working relationship. Please let me know if you have any questions or concerns about this change. I appreciate your understanding and continued business.
Sincerely, [Your name]”
Price increase email template
Craft a clear, concise subject line like “Important notice regarding pricing” or “Announcing an increase to [product/service] pricing” to convey the message without confusion. The body of the email should hold details about the increase, when it takes effect, and which products, services, or subscriptions are affected.
Dear [Customer],
I’m writing to inform you of an upcoming increase in rates for [product or service] effective [date]. After holding our prices steady for the past two years, operating costs have increased to the point where a price adjustment is needed.
Please note this increase notice only applies to new or renewing [product or service] after [date]. Your existing rates and service will remain unchanged until your current subscription renews. We value your continued business and partnership. Let me know if you have any questions or concerns.
Sincerely,
[Your name] [Your title]
Social media price increase template
You can also announce a price increase through social media posts to your customer base. Explain the increase in price in an understanding yet matter-of-fact tone. For example:
We will be raising our prices by 5-10% starting next month. Our costs have gone up, and price adjustments are necessary to continue offering the quality and service you expect. We appreciate your understanding and continued support. Let us know if you have any questions!
Communicating the price increase across channels
In today’s digital age, it’s a good idea to share information about changes to your prices on multiple channels, not just email or a written letter. Here are some tips for cross-channel communication about a price increase.
Compose your announcement letters
Write a carefully worded letter or email for your customers explaining your price increase. Keep it brief but transparent, outlining the factors driving your costs up and your commitment to continued great service.
Spread the word on social media
In addition to direct emails, announce your price increase on your business social media profiles. Keep these posts upbeat and focus on the improvements you’re making to continue serving customers well.
Maintain consistency across channels
Use consistent messaging about your price increase across emails, letters, social media posts, and in-person conversations. Provide the key details, explain the reasons clearly, and express appreciation for your customers in each communication. This approach, along with advance notice, will minimize frustration and the risk of losing customers when you raise your prices.
Maintaining customer loyalty after a price increase
After informing your customers of an increase in price for your product or service, the next challenge is keeping them on board. Loyal customers are the lifeblood of any small business, so making sure they feel valued even with higher costs is key.
Make contact personally
Once you’ve sent your price increase announcement, reach out to your customers personally by phone or email. Be open about the factors driving your costs increase, like inflation or increased operating costs, and thank them for their continued support. Most understanding customers will see a reasonable price increase as a normal part of doing business.
Offer a sweetener to loyal customers
It can help to offer discounts for long-time or high-volume customers. For example, you might give a 10% discount for customers who have been with you for over 2 years or who spend over a certain amount annually. This shows them you value their loyalty and business. You can also grandfather in existing customers at their current rate for a limited time.
Keep customer service high
Boost your customer service to reassure clients. Respond to calls and emails even faster, and survey customers to address any concerns. Strong customer service is the best way to retain customers after a price hike.
Emphasize the value you deliver
Use your emails and social media posts to highlight the value your customers still get. Share testimonials from happy clients, and stories of how your product or service has helped them. Educate them on any new features or innovations that add more value, to remind them why they started buying from you in the first place.
Raise your prices and keep your customers too
While you may lose some customers after raising your prices, focusing on the ones who stay can help offset the loss. With transparent communication and a commitment to high-quality service, you can raise your prices without losing the goodwill of your customer base. With time, your remaining customer base will adjust to the new rates, and your business will continue to thrive. By providing great service and value, you’ll come out the other side with a stronger, more committed group of customers.
