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Price Increase Letter Generator
Tell customers about a price change clearly and respectfully. Enter your old and new prices, the effective date and the reason, choose a warm, professional or brief tone, and get a ready-to-send email or letter with the percentage change worked out for you.
Last updated:
Format
Tone
Business & customer
Leave blank for "Dear valued customer".
New pricing
Used in the letter, e.g. "monthly cleaning service".
Blank = 30 days after the letter date.
Reason & extras
e.g. 2023 or "we opened"
e.g. fuel and equipment costs have risen sharply
e.g. renewing your annual plan
Enter your values to see the result.
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How to use the Price Increase Letter Generator
- Choose email or letter and the tone that fits your customers.
- Enter your business and customer details; the customer name is optional.
- List the prices, one per line as name, current price, new price, and set the effective date.
- Pick a reason and extras, such as a lock-in offer or a contact for questions.
- Review the letter, press Generate letter again for different wording, then copy, print or download it.
Structure of a good price increase notice
| Part | What to write |
|---|---|
| Opening | Thank the customer and state the purpose in the first two sentences |
| Effective date | A specific date, not "soon" or "next month" |
| Reason | One or two honest sentences about costs or improvements |
| New pricing | Current and new prices side by side so nothing is hidden |
| Options | Lock-in offers, plan changes or how to cancel if relevant |
| Contact | A named person, phone or email for questions |
The percentage formula
% increase = (new price − current price) ÷ current price × 100. The overall figure uses the sum of all current prices and the sum of all new prices, which weights each item by its price.
Tips
- Send the notice from a real person and keep the subject line plain: "Pricing update for … effective …".
- Check subscription terms, contracts and any local rules about notice before you send.
- Tell your team first so they can answer questions consistently.
- Consider grandfathering long-time customers for a few months; it is often cheaper than losing them.
- Follow up a week before the effective date with a short reminder.
Frequently asked questions
How much notice should I give for a price increase?
30 days is a common minimum for consumers, and 60–90 days is typical for business customers and annual contracts. Always check your contracts and terms of service: some require a specific notice period or written notice before prices can change.
What should a price increase letter include?
The new price and the current price, the date the change takes effect, a short honest reason, what (if anything) the customer can do, such as locking in the old rate, and how to contact you with questions. Thanking customers for their business helps the message land well.
Should I explain why prices are going up?
Usually yes. A brief, honest reason, such as higher material costs or investment in better service, helps customers understand. Keep it short and avoid over-apologizing. You can choose not to give a reason, but the letter may then feel more abrupt.
How do I calculate the percentage price increase?
Percentage increase = (new price − old price) ÷ old price × 100. A change from $45 to $49 is a 8.9% increase. For several items the calculator also shows the overall change based on the totals.
How can I reduce customer churn when raising prices?
Give plenty of notice, explain the value customers receive, offer a way to lock in the current price (prepaying or an annual plan), and make it easy to ask questions. Raising prices in modest, predictable steps is usually received better than rare large jumps.
Is my information sent anywhere?
No. The letter is generated in your browser and nothing you type is uploaded.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.
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