How to tell customers about a price increase (letter, email and text you can copy)

A price increase letter tells a customer three things: the new price, the date it starts, and one honest reason. Put the price and the date in the first two sentences, say what stays the same, thank them, and say how to reach you. Send it in writing before the change, and never let the invoice be the first place they see it.

This is general guidance, not legal advice. If you have a written service agreement, check what it says about price changes and notice. Rules vary by state, so check yours.

The short answer

• The new price and the old price.
• The date it starts.
• One honest reason.
• What stays the same.
• How to reach you.

Send it in writing before the change.

What to put in a price increase letter

The new price, the date it starts, and one honest reason, in the first few lines.

• Price: the old price and the new one, per visit, month or season, the way you bill it now.
• Date: the first visit or billing period the new price applies to.
• Reason: one sentence in your own words, such as your costs, your time, or a better product. No apology, no figures, and no blaming the customer.
• What stays the same: the schedule, the day, and what's included.
• How to reach you: reply, call, or text, and thank them.

Whether you call it a letter or a price increase notice, these five parts are what the customer needs.

When to send it

Before the next billing period starts, and at least as early as your agreement with the customer says. Tie the date to something the customer already knows: the start of the season, the new year, or a plan renewal. Rules vary by state, so check yours.

For new customers and new jobs, there's nothing to announce: just use the new price on the estimate. Start from the free estimate template or, for seasonal work, the lawn care estimate template.

Letters you can copy

Copy any letter below, fill in the [brackets], and send it as a letter, an email or a text, or say it in person. Use the Copy button if your browser shows one.

Any recurring service

Letter or email: recurring service (any trade)Subject: Your [service] price from [date] Hi [name], Thank you for having [business] look after your [service]. Starting [date], your price will go from $[old price] to $[new price] per [visit / month / season]. [One honest reason, for example: my costs for fuel and materials have gone up.] Your schedule and everything included in your service stay the same. If you have questions, reply here or call me at [phone]. Thank you, [your name], [business]

Lawn care: new season

For the season's estimate and bills, see the lawn care estimate template and the lawn care invoice template.

Lawn care: new seasonHi [name], thank you for a good season. For [year], weekly mowing will be $[new price] per visit (it was $[old price]), starting with the first cut on [date]. Everything else in your service stays the same. If you'd like to change anything, let me know by [date]. [your name], [business], [phone]

House cleaning: per-visit rate

Setting up the new rate on paper? See the house cleaning estimate template.

House cleaning: per-visit rateHi [name], I wanted to let you know ahead of time that from [date], your [weekly / every-other-week] cleaning will be $[new price] per visit instead of $[old price]. Your day, time and checklist stay the same. Thank you for trusting me with your home. Questions anytime at [phone]. [your name]

A plan billed by period

For window, pest, pool or snow plans. Billing by period? See the pest control invoice template and the window cleaning invoice template.

Plan billed by period (window, pest, pool, snow)Hi [name], your [service] plan renews on [date]. The new price will be $[new price] per [month / quarter / season] (it was $[old price]). Visits and what's included stay the same. If you'd like to talk about it or change your plan, reply by [date]. [your name], [business]

If your plan renews automatically, some states have rules on renewal and price-change notices, so check yours before the renewal date.

Email, text, or in person

Send the letter or email for the record, and use a short text or a word in person as a heads-up to point to it. For an email, use a plain subject line that says what it's about, like "Your [service] price from [date]".

Short text heads-up (existing customers only)Hi [name], it's [your name] with [business]. Heads-up that I've emailed you about your [service] price from [date]. Happy to answer any questions here.

Send this only to existing customers who gave you their number for their service, one at a time, about their account. Don't send it as a bulk or automated message without checking the rules that apply to you, and stop if they ask you to.

In person: say it, then send the letter so it's in writing.

Updating your estimates and invoices

Use the new price on invoices only from the start date in your letter, and don't change a price in the middle of a billing period, especially one the customer has prepaid, unless your agreement allows it. For seasonal customers, a renewal estimate with the new price and a valid-until date gives them something to say yes to; see invoice payment terms for putting your terms on the estimate first, and how to write a contractor estimate. Questions about sales tax on the new price? Ask your state's tax agency or a tax preparer.

When a customer pushes back or cancels

If the price is the sticking point, offer a change to the job rather than the rate, like the options in what to say when a customer says your estimate is too high.

Reply when a customer pushes backI understand, and thank you for telling me. The new price reflects what the job costs me now. If it helps, I can [change the visit schedule / leave out (item)] to bring it closer to your budget.

Reply when a customer cancelsThank you for letting me know, and for having me look after your [service]. Your last visit will be [date], and your final invoice will be at the current price. [Any amount you prepaid for visits after that will be refunded.] If anything changes, I'd be glad to have you back.

Bill the final visit at the current price. If it goes unpaid, see how to follow up on an unpaid invoice.

Frequently asked questions

How do you write a price increase letter?

Put the new and old price, the start date and one honest reason up front. Then say what stays the same, thank them, and say how to reach you. The letters above are ready to copy.

How much notice should I give before raising prices?

Give it before the next billing period starts, and at least what your agreement with the customer says. Rules vary by state, so check yours.

Should I explain why my prices are going up?

One honest reason in a sentence is enough. Don't over-explain or apologize.

Can I text customers about a price increase?

A short heads-up text to an existing customer who gave you their number for their service is a way to point them to the letter; keep the details in writing. Send it one at a time, about their account, and stop if they ask. Don't send bulk or automated texts without checking the rules that apply to you.

Do I have to raise prices for existing customers too?

It's your decision. If you have a written agreement, follow what it says about price changes. You can keep a current customer's price until renewal or apply the new one to everyone; say which clearly.

What if a customer asks me to keep the old price?

Thank them, keep the reason short, and offer a change to the job instead of the rate, such as fewer visits or a smaller scope. See what to say when a customer says your estimate is too high.

Templates

For recurring work: the lawn care estimate template, house cleaning estimate template, pest control invoice template and window cleaning invoice template. For everything else, see the free estimate template, the estimate templates by trade and the invoice templates by trade.