Sample Price Increase Letter

It’s never easy to implement price rises, but they are a fact of life and your customers won’t desert you if you put up your prices. Sometimes they have to be raised due to the cost of raw materials, sometimes because the costs of running your business in general have risen. Better to increase prices than to lose your business.

Of course from a customer’s point of view, price rises are never welcome but if you acknowledge that fact in your letter and briefly explain why you’ve had no choice but to implement a price rise, then you will continue a good relationship of honesty and openness with them into the future.


Announcement of price increase letter – sample 1:

[Contact Name]


Dear [Name of Customer],

We would like to inform you that we are unfortunately planning to increase the price of certain goods due to the sudden increase in the cost of the raw materials we use in our production process. Since we still have a limited stock of those raw materials, the price increase will not be made until [Target Date].


We have tried to prevent this price increase for as long as possible because of course we want to provide our products at a  competitive price. However, the recent increase in the price of the raw materials is now too great for us to absorb, and we regrettably have no choice other than to implement a slight increase on the items listed below.

[list items here]

If you have any questions please don’t hesitate to call [person’s name] on [phone number]

Thank you for your understanding.

Yours Sincerely,

[Name of Company]


Announcement of price increase -sample 2:



Dear [Name of Contact],

We regret to tell you that we will be conducting a price increase on some of our products due to [Specify Reason].

Below is the list of products that will be affected by the price increase:

[List of Products]

We have of course tried everything we can to avoid a price increase, but unfortunately not to do so would directly affect our ability to trade. We would like to apologise in advance for any problems that the price increase may cause.

We hope that you will understand our situation and will continue to support our products.


[Phone Number]
[Company Email]


Informal announcement of price increase – email sample:

Hi [Name],

You might have seen in the news that [news headline about raw materials price rise] this year because [reason]. We wanted to reassure you that we don’t need to increase our prices yet as we buy our [product] 3 months in advance.

We told you in [month] that we might have to increase our prices again if wholesale costs remained high and unfortunately, they’ve gone up by 5% since then. This means we’ll have to increase them in [month].

We understand that price increases are never welcome and of course you can leave us at any time, but of course we hope that you will stay with us as a valued customer.

[optional sentence – We’ve written a blog post with more information if you’d like to find out more. (link here)]

Best Wishes

The team at [company name]