Price increase letter template for customers (free, copy and send)

Short answer

A good price increase letter states the new price, the effective date, a short honest reason, and what does not change — and gives customers enough notice to plan. It must not change prices already agreed in a signed contract or quote unless that contract allows it.

Customers rarely leave over a fair, well-explained increase. They leave over surprises: a higher invoice with no notice, or a vague reason that sounds made up.

This template is written for contractors, trades, service companies and small businesses. It is also useful from the other side: if you received a price increase, the checklist below shows what a fair notice should contain.

The template

Edit right in the box — replace anything in [brackets] — then copy, email or print.

Subject: Update to our pricing effective [effective date]

Hi [Customer name],

Thank you for choosing [Business name]. I'm writing to let you know that starting [effective date], our [service / hourly rate / service-call fee] will change from $[current price] to $[new price].

Why: over the past [period], our costs for [materials / insurance / wages / fuel] have increased. We've held our prices as long as we could while keeping the same standard of work.

What does not change:
- Any quote or contract you've already signed with us stays at the agreed price.
- Our [warranty / workmanship guarantee / response time] stays the same.

If you'd like to book [service] at the current price, please schedule before [date].

If you have any questions, reply to this email or call me at [phone]. We appreciate your business.

Kind regards,
[Your name]
[Business name] | [Licence # if applicable] | [Phone] | [Email]

Educational template from whatsnormal.app — not legal, financial or tax advice. Adapt to your local law.

How to fill it in

1
Check your contracts first
Prices in signed quotes, fixed-price contracts or subscriptions may be locked. Review the terms and honour existing agreements unless they allow changes.
2
Pick the effective date and give notice
Give customers enough time to plan or book at the current rate. Your contract or local consumer rules may require a specific notice period.
3
Give one honest, specific reason
Name the actual driver — materials, insurance, wages, fuel — without inventing figures.
4
Say what stays the same
Warranties, response times, service quality: reassurance reduces the 'what else is changing?' worry.
5
Offer a way to ask questions
Include a name, phone or email. Optionally let customers book at current rates before the effective date.

Received a price increase? A fair notice should include

The old and new price, and exactly which services it applies to.
A clear effective date with reasonable notice.
Confirmation that your already-signed quote or contract is honoured.
A specific reason and a contact for questions.
If the increase appears on an invoice for work already agreed, ask for the signed change order that authorised it.

Got a quote or bill to check?

Upload a photo or PDF and get a plain-English read on whether the price looks normal and what to ask next.

Check your bill or quote

Common questions

How much notice should I give before a price increase?

There is no single legal notice period for every business. QuickBooks recommends giving enough advance notice for customers to adjust budgets; check your contracts and any local consumer or subscription rules that apply.

Can I raise the price on a job that is already quoted?

Generally not without agreement if the customer accepted a written fixed price. Honour the quote or agree a written change order. The rules depend on your contract and your state or province.

Should I explain why prices are going up?

Yes. The US Chamber of Commerce recommends being transparent about rising costs. Keep the reason short and true; don't quote numbers you can't support.

Is it better to raise prices once a year?

Many businesses use a regular, predictable schedule, which the US Chamber notes customers often perceive as standard policy rather than a surprise.

Keep reading

How do electricians calculate labour rates?

Separate the hourly rate from minimums, crew time, diagnosis and the complete installed price.

How do plumbers price jobs? Hourly vs. flat-rate pricing

Hourly, flat-rate or time and materials: understand what determines the final plumbing bill.

How to handle price objections when a customer says your quote is too high

Itemize, offer scope options instead of discounts, and make your price easy to verify.

Sources

US Chamber of Commerce (CO—): How to communicate a price increase to customers — Structuring increases, regular schedules, and transparent communication about rising costs.
QuickBooks Canada: How to announce a price increase — Advance notice, multiple channels and FAQ for customers (Canadian small-business context).
FreshBooks: How to tell your clients about a price increase — Telling your team first and giving customers direct advance notice.

Last reviewed October 2026.