Free Price Increase Letter Generator

With the defaults (a 6% increase on a $189 annual maintenance plan) the letter tells the customer the plan goes from $189 to $200.34. Switch to a dollar increase of $15 and it becomes $204. The text version is 146 characters, one SMS: "Hi Dana, heads-up from Sample Plumbing: our prices go up 6% on January 1, 2027. Jobs booked before then keep today's price. Questions? Just reply."

What should a price increase letter include?

A price increase letter should include the amount of the increase, the date it takes effect, the reason, what it means for the customer's current work or plan, and how to ask questions. That's it. Customers mostly want to know whether their next bill changes and by how much.

Here's the full default letter: "Dear Dana, Thank you for trusting Sample Plumbing with your plumbing work. I'm writing to let you know that starting January 1, 2027, our prices will go up by 6%. Your annual maintenance plan will go from $189 to $200.34. We don't take this lightly. Over the past year our costs for materials, labor, fuel and insurance have all gone up, and we'd rather adjust our prices than cut corners on the work or the people doing it. Any work booked or estimates approved before January 1, 2027 stay at the current price. If you have questions, reply or give us a call anytime. Thank you for being a customer. Mike Sample Plumbing"

Percent or dollar increase: which should you use?

• Percent fits an across-the-board increase on many services ("our rates go up 6%"). It's honest about scale without listing every price.
• Dollar amount fits recurring visits and plans where the customer knows their price. "Your weekly mow goes from $45 to $50" is clearer than "11.1%".
• Both for maintenance plans: the percentage for context and the new plan price, so there's no math for the customer to do.

Before you pick a number, run it through the markup and margin calculator. A price increase that only covers last year's cost increase doesn't improve your margin; it just holds it. The how to price jobs guide covers setting prices from your real costs.

How much notice should you give?

Give recurring customers at least 30 days' notice, and give maintenance-plan members notice before their renewal date. One-time customers only need to see the new price on their next estimate. If a signed contract or service agreement sets the price for a term, the new price applies at renewal unless the contract says otherwise, so read your agreement before you send anything.

• Weekly or monthly route customers (lawn care, cleaning, pool, pest): 30 days, by email or letter, then a text a week before.
• Maintenance plan members (HVAC, plumbing): before the renewal notice goes out, with the new plan price. See maintenance agreements.
• Commercial accounts and property managers: 60–90 days if they budget annually, and a letter on letterhead.
• Open estimates: honor them until they expire. Put an expiration date on every estimate going forward.

What reason should you give?

Give the real one, in one sentence. Materials, wages, fuel, insurance and vehicles are reasons customers understand. If you want to cite inflation, use a real number from the Bureau of Labor Statistics (the Consumer Price Index for consumer prices, or the Producer Price Index for materials) with the month it covers, not a number you heard somewhere. You don't need a reason that justifies every dollar, and you shouldn't apologize at length: a confident, brief notice signals a business that's staying around.

Price increase letter examples by trade

Sending the notice by email or text

A price notice to existing customers is about the service they already buy, so keep it about that. If you mix in promotions, the email may count as commercial under the FTC's CAN-SPAM guide, which then requires an accurate subject line, your physical postal address and a working opt-out. Texts sent through software need consent under FCC rules, and anyone who asks you to stop texting should be switched to email or mail. Use the text only as a short reminder that points to the full notice.

Common price increase mistakes

1. Hiding it. A new price that shows up on an invoice with no notice is how you lose a ten-year customer.
2. Waiting too long, then jumping. Small yearly increases go down easier than one big jump every five years.
3. Over-explaining. A three-paragraph apology invites negotiation. One reason, one sentence.
4. Raising prices on booked work. Honor what customers already agreed to.
5. Forgetting to update everything. Price book, estimate templates, website, maintenance-plan page and invoicing software should all change on the same date.

After the increase, watch your close rate and average ticket for a couple of months. If close rate barely moves and ticket goes up, the increase worked. Following up on open estimates at the new price? Use the estimate follow-up generator.