How much notice should I give before raising prices?

Check your contract or terms first, as they may set a notice period. If they don't, 30 days is a common courtesy for ongoing clients, and longer for big increases or annual contracts.

Do I have to explain why I'm raising prices?

No, but one honest sentence helps, such as rising costs or more work going into each job. Keep it short and don't apologise at length.

Price increase letter templates

Three polite ways to tell customers your prices are going up: a friendly note, a formal letter and a short email. Fill in your details once and copy. Free, no sign-up, nothing leaves your browser.

Customer's nameYour nameBusiness nameCurrent priceNew priceDate it starts

Reason, one sentence (optional)

Friendly notice

For regular clients you know well

Subject: A small update to my prices from 1 November

Hi Sam,

Thank you for working with me. I wanted to let you know in good time that from 1 November my price will go from £300 a day to £350 a day. My costs have gone up over the past year, and this lets me keep giving you the same level of service.

Everything else stays the same, and any work booked before 1 November will be charged at the current price.

If you have any questions, just reply. I really appreciate your business.

Best wishes,
Alex

Formal letter

For companies, contracts and accounts teams

Subject: Notice of price change from 1 November

Dear Sam,

I am writing to give you notice that Alex Design will be updating its prices with effect from 1 November.

From that date, the price will change from £300 a day to £350 a day. My costs have gone up over the past year, and this lets me keep giving you the same level of service.

Orders and work confirmed before 1 November will be invoiced at the current price. Please update any purchase orders or budgets accordingly.

Thank you for your continued custom. If you would like to discuss this, please get in touch.

Yours sincerely,
Alex
Alex Design

Short email

For many customers at once

Subject: Our prices from 1 November

Hi Sam,

A quick heads-up: from 1 November, our price changes from £300 a day to £350 a day. My costs have gone up over the past year, and this lets me keep giving you the same level of service.

Thanks for being a customer.

Alex, Alex Design

Tips for raising prices without losing customers

Give plenty of notice, say the new price and the date plainly, and keep the reason to one honest sentence. Honour work already booked at the old price. Most customers expect prices to rise from time to time; what upsets them is a surprise on the invoice.

Work out your new price

See what you need to charge to hit your income, or what margin a new price gives you.

Hourly rate calculator Profit margin calculator All free tools