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Price Increase Email Template — Communicate Changes Professionally
Handle price increases with transparency and care. Our templates help you communicate changes while preserving relationships.
Email Template
Hi [Client Name], I hope this email finds you well. I'm writing to share an important update about our pricing. **The Change:** After careful consideration, I'm updating my rates to better reflect the value and quality of service I provide, as well as to account for increased costs and market rates. **New Pricing Effective [Date]:** - **Current Rate**: $[Amount] per [month/hour/project] - **New Rate**: $[Amount] per [month/hour/project] - **Increase**: [X]% or $[Amount] increase **Why This Change:** - [Reason 1: e.g., "To maintain the high level of service and attention you've come to expect"] - [Reason 2: e.g., "Increased costs for tools, software, and resources"] - [Reason 3: e.g., "To align with current market rates for similar services"] - [Reason 4: e.g., "To invest in continued education and improved capabilities"] **What This Means for You:** - **Grandfathering Option**: As a valued existing client, I'm offering to honor your current rate of $[Amount] until [Date] (typically 30-90 days from notice). - **New Rate Effective**: After [Date], your rate will adjust to $[Amount] per [month/hour/project]. - **No Surprises**: This is the only rate change planned for [timeframe: e.g., "the next 12 months"]. **Your Options:** 1. **Continue at New Rate**: Your service will continue seamlessly at the new rate starting [Date]. 2. **Adjust Scope**: We can discuss adjusting the scope of work to better fit your budget if needed. 3. **Pause Service**: If the new rate doesn't work for your budget, we can discuss pausing or ending our arrangement. **Next Steps:** Please let me know by [Date] how you'd like to proceed. I'm happy to schedule a call to discuss this further or answer any questions. I value our partnership and want to make sure this works for both of us. Thank you for your understanding. Best regards, [Your Name] [Your Company] [Phone]
How to use: Copy the template above and replace the placeholders (like [Client Name], [Project Name], etc.) with your actual information.
When to Use This Template
Best Practices
Lead with Value, Not Price
Open by highlighting the results delivered and the improvements made to your services. "Over the past year, we have expanded our reporting capabilities, reduced turnaround times by 30%, and delivered a 120% increase in your qualified leads" sets the context that justifies the investment. The price increase should feel like a natural continuation of growing value.
Be Transparent About the Numbers
State the exact new price, the percentage increase, and the effective date clearly. Ambiguity creates anxiety and erodes trust. "Your monthly retainer will increase from $5,000 to $5,750 (a 15% adjustment) effective April 1, 2026" gives the client everything they need to make an informed decision.
Offer a Loyalty Benefit
Consider offering long-term clients a reduced increase, an extended lock-in period at the new rate, or an added service. "As a valued client of two years, we are offering you the new rate at 10% rather than the standard 15% increase" rewards loyalty and reduces pushback significantly.
Open the Door for Discussion
End with an invitation to discuss the change. Some clients may need to adjust scope to fit their budget, and being flexible about how to structure the new arrangement shows that you value the relationship beyond the invoice amount. Rigidity at this stage loses clients unnecessarily.
Pro Tips
- Give 30-90 days notice before price increases take effect
- Explain the "why" behind the increase clearly and honestly
- Offer to grandfather existing clients for a period when possible
- Be transparent—don't hide behind vague explanations
- Provide options (adjust scope, pause service) if needed
- Schedule calls for clients who have concerns or questions
What Makes This Template Effective
Advance Notice
Provides sufficient notice (typically 30-90 days) before changes take effect.
Value Justification
Explains the reasons behind the increase clearly.
Grandfathering Option
Offers to honor current rates for existing clients when appropriate.
Professional Tone
Communicates changes respectfully and transparently.
Clear Effective Date
Specifies exactly when new rates take effect.
Alternative Options
Provides options if clients need to adjust.
Frequently Asked Questions
How much notice should I give for price increases?
Give 30-90 days notice, depending on the service. For monthly retainers, 30-60 days is standard. For annual contracts, 90 days is better. More notice shows respect and gives clients time to adjust budgets.
Should I grandfather existing clients at current rates?
It depends on your situation. Grandfathering for 30-90 days is a nice gesture that shows you value existing clients. However, if your costs have increased significantly, you may need to apply increases to everyone. Consider your relationship and their value.
What if clients push back or threaten to leave?
Listen to their concerns. Understand their budget constraints. You can offer alternatives: adjust scope, reduce frequency, or phase the increase. However, don't devalue your services. If they can't afford your rates, that's okay—part ways professionally.
How often can I increase prices?
For ongoing services, annual increases of 5-10% are common and reasonable. For project-based work, increase rates for new projects. Avoid frequent small increases—they feel like death by a thousand cuts. Better to do larger increases less frequently.
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