Price Increase Email

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

Important Update: Pricing Changes Effective [Date]
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

Price increases are necessary for agency sustainability — costs rise, team capabilities improve, and the value you deliver grows over time. Yet many agencies delay necessary price increases out of fear of client backlash, ultimately undermining their own profitability and ability to deliver quality work. Use this template when you need to increase rates for existing clients. Give at least 60-90 days advance notice before the new pricing takes effect. This allows clients to budget accordingly and demonstrates respect for their planning processes. Surprise price increases damage trust and increase churn significantly. The most important aspect of a price increase email is framing. Clients accept price increases when they understand the value they are receiving in return. Leading with enhanced capabilities, improved results, or expanded service offerings before presenting the new pricing makes the increase feel earned rather than arbitrary.

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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