How the Price Increase Letter Writer works
Pick a tone, fill in your business, service, prices and start date, and the letter writes itself below. Copy it into an email or print it.
The friendly letter thanks the customer and explains why. The firm letter is shorter and to the point. The text message version fits on one phone screen.
Customers you could lose works from your profit margin. Each customer who stays brings in the increase as extra profit, so fewer customers at the new price can make the same profit as all of them at the old one.
It's an estimate that assumes your costs stay the same per visit. Most owners lose far fewer customers than this, but it's good to know how much room you have.
Tips from the trade
- Give at least two to four weeks' notice, and send the letter at a calm time of year, not in the middle of a busy week.
- Don't apologize too much. A short, honest reason and a thank-you is enough.
- Raise prices a little every year instead of a lot every few years. Small, regular increases cause less pushback.
A worked example
Here's the example that's already filled in above, so you can see how the Price Increase Letter Writer works before you enter your own numbers.
- Your business nameGreen Street Lawn Care
- Your nameSam
- Your serviceweekly mowing
- Old price$45
- New price$50
- Price is pervisit
- New price startsMarch 1
- ToneFriendly
- Customers on this price40
- Your profit margin now20%
With those details, it writes:
Hi, Thank you for trusting Green Street Lawn Care with your weekly mowing. We really enjoy working with you. Like a lot of small businesses, our costs for fuel, supplies, equipment and insurance have gone up. To keep doing the careful work you expect, we're adjusting our prices. Starting March 1, your weekly mowing will be $50 per visit (it's $45 now). Nothing else changes: same people, same schedule, same care. If you have any questions, just reply or give us a call. Thank you for your support. We truly appreciate it. Sam Green Street Lawn Care
With a 11% increase, you could lose up to 14 of your 40 customers and still make about the same profit. Your letter is ready below.
Related free tools
- Am I Undercharging? Price Check: what you really earn per hour on a job after costs and taxes, and the price that pays you what you need.
- Good, Better, Best Quote Builder: turn one price into three package options, basic, standard and premium, to raise your average sale.
- Customer Lifetime Value Calculator: what one regular customer is really worth over the years, and what it's fair to spend to win one.
When you need more than the free Price Increase Letter Writer
This tool writes one document. Running a business means doing it on every job, with your own rates saved and a quote you can send.
Price Increase Letter Writer questions
How do I tell customers about a price increase?
Keep it short, polite and specific: thank them, give a simple reason, say the new price and the date it starts, and invite questions. This tool writes the letter for you.
How much notice should I give?
Two to four weeks is common for service businesses. Regular customers on a contract may need the notice their agreement says.
How many customers will I lose if I raise prices?
Usually far fewer than owners fear, especially with a fair reason and good notice. The tool shows how many you could lose and still make the same profit, so you know your safety margin.
Should I raise prices for existing customers?
Yes, if your costs have gone up. Many owners raise new customers first, then move existing customers up with a letter like this one.