Price increase letter for customers

Your costs went up. Here's how to tell your customers plainly, early, and without losing the good ones.

3 min read

The short answer

A good price increase letter thanks the customer, says in one sentence what's going up and when, gives one honest reason, says what stays the same, and ends with a name and number to call. Send it at least a month ahead, and tell your regulars first. Below is one to copy.

On this page

Price increase notice: what to send and when
Sample letter for a price increase
Price increase letter to customers
Price increase letter to clients on a service plan
Price increase email and text versions
Telling your regulars first

Price increase notice: what to send and when

Give as much notice as you can, and at least a month. Customers on a service plan should hear before anyone else, and ideally from you, not a mass email.

Who hears first. Service plan customers and regulars, with a personal note.
How much notice. A month or more before the new rates start.
What reason to give. One honest sentence: parts, fuel, insurance or wages.
Where else it shows. The same wording on your quotes and invoices from that date.

Sample letter for a price increase

One short page. No long apology, no talk of "adjusting our pricing structure." Say it the way you'd say it at the door.

New rates from [start date]

Dear: [Customer name]
Thank you: Thanks for trusting [shop] with your [home or business] over the years.
What's changing: Starting [start date], our [service or hourly] rate goes to [new rate].
Why: Parts and [fuel, insurance or wages] cost more than they did, and we want to keep the same crew and the same quick callbacks.
What stays the same: [Your warranty, your service plan visits, the people who show up].
Questions: Call or text [your name] at [phone]. Happy to talk it through.

[Your name], [shop]

Price increase letter to customers

For customers who call you once or twice a year, the letter can be short, and it doesn't need to go out on its own. Send it with their next reminder or put it on their next quote, so the new rate isn't a surprise when the bill comes.

Price increase letter to clients on a service plan

Plan customers pay ahead, so they get the most notice and a personal note. Tell them when the new plan fee starts, usually at renewal, and remind them what each visit includes.

To a plan customer

Hi [name], it's [your name] at [shop]. A heads-up before your plan renews on [date]: the plan fee goes to [new fee] this year, because parts and fuel cost more. Your two visits and priority booking stay the same. Any questions, call me.

Price increase email and text versions

Some customers will read a text and never open the letter. Keep it to the facts, and point them to you.

By text

Hi [name], it's [your name] at [shop]. Our rates go up on [start date] to cover higher parts costs. Anything booked before then stays at today's price. Call me if you have questions.

When a customer asks why

Fair question. Parts and insurance went up a lot this year, and I'd rather raise rates a little than cut corners or send a crew you don't know. Anything booked before [date] stays at the old rate.

Telling your regulars first

The customers who keep a small shop going deserve a personal note before the general letter. Writing one for each of them by hand is the part that never gets done, so the letter goes out to everyone at once instead.

By hand5 steps

Pull up your list of regulars
Remember what you did for each one
Write each note so it doesn't sound like a form
Look up their numbers
Send them one by one

For every regular, before the letter goes out.

Set up onceWaiting on you

Mrs. Alvarez has been with you six years. Here's a personal note about the new rates. Send it?

Hi Mrs. Alvarez, it's Rosa. Before our new rates start on [date], I wanted you to hear it from me. Your plan and your Tuesday slot stay the same. Thanks for six good years.

A personal note drafted for each regular. A person sends it.

See the repeat customers job →

NextPast customers, back on the scheduleSee how the repeat customers job drafts a check-in when someone's due.

Questions about price increase letters

Something else on your mind? Ask us on the fit call. No pitch, and we'll say if it isn't a fit.

Book a fit call

Tell them before it happens, in writing and in plain words. Say what is changing, when it starts and why, thank them for their business and give them a way to ask questions. Give as much notice as you can. Customers on a service plan should hear first, ideally from you directly.

Open with thanks, then state the change in one sentence: what is going up and the date it starts. Give one honest reason, like higher material or labor costs. Say what stays the same. Close with a name and number to call. Keep it to one short page and skip the long apology.

Give the real reason, briefly: parts, fuel, insurance or wages cost more than they did. Point to what they still get, like quick callbacks or the same crew every time. Don't over-explain or apologize at length. Customers mostly want to know the change is fair and that you'll keep showing up.

Common wordings are "rate change," "price update," "new rates" and "updated service rates." Plain is better than clever. "Our rates go up on March 1" is clearer than "we're adjusting our pricing structure," and customers tend to trust the clear version. Use the same wording on the letter and the invoice.

Yes, if you can. Repeat and service plan customers keep a small shop going, so a personal note before the general notice shows respect. In a Commonhouse setup, AI drafts a personal note for each long-time customer, and a person on your team reads and sends every one.