With the increase in the price of products or services, the companies announce the action through a price/rate increase letter. It is the obligation of the company to inform the customers, the company, and the client about the hike in prices due to some valid reason. Due to the fluctuations in the price of raw materials, overhead expenses, tax, and rent, the change in the actual price of the product is expected. But there exists a strong possibility to alarm the client and customer. The client and the consumers are aware of your product quality, and who has been a consistent customer of yours, would understand the reason and might continue to be the one. But the company is equally responsible to announce the price or rate increase of product through the price or rate increase letter.
A well-crafted rate increase letter is a convenient way to circulate the news among the customers and the clients. But before the news reaches them, the company, especially the sales, and the customer service department needs to be aware of the intricate details concerning it. So when the customers or the client contact the company and wishes to know about the price increase, they have the proper statement and reason to speak about it.
Table of Contents
What is a Price / Rate Increase Letter?
A price rate increase letter is a document issued by the company to announce the increase in the price of the product or services to its clients or customers. Through this letter, the company opens up about their decision that is believed to have any effect on customer count.
It is more of public notice than just a letter utilized to explain to the client and the customers about the unexpected decision. Describe the possible reasons and the relatable changes in the pricing system. It would be better to include in the percentage of price increase, name of products or services, date from which the changes will be on, and terms and conditions.
During such a price increase, the company announces a new change limited to certain products and services. So if your company is planning to have such obligations or offers for the customers, it must be included in the letter so the announcements remain in a balance. For example, the new price decided on applies to certain products only. In addition, the customers to place an order before the particular date would pay the previous price. It is a nice way to balance the news so the customers or the client is not shocked.
Price / Rate Increase Letters
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Price Increase Notice Template
Pricing Effective Increase Letter Template |
Price increase letter examples |
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How Do You Announce Price Increase in a Letter?
An announcement of the price increase is done through an effective letter. The client or the person you are targeting to inform must receive the information in a professional way. The element that harmonizes the price/ rate increase letter must be adequate to inform each client of the effect of the price increase. Just as the company has the freedom to raise the price, likewise, the loyal customers and the client must know about it.
1. Letter objective.
With an objective, your company decides to invest time and effort in the price/ rate increase letter and publish it in the public domain. Therefore, it must come up with a proper objective. You might call it a letter subject as well. It usually appears in the introductory part of the letter. The information of price raise of product or services of the company is written as the letter objective.
2. Reason for the price increase.
With the equal initiative, communicate the reasons for the increase in the price as well. It could be due to the increase in the price of other raw materials that you use for manufacture, the increase in rent, the modification in taxation policy, the increase in labor service, etc. Whatever is the cause must be stated well in the price increase letter so, the reason for the change is clear to the client or customer.
3. Date of effect.
Mention the date from which the increase will have an actual effect. It could be the first day of a month or the first day of the year. Include the date your company and the higher-level management have picked since which the increase of the price will have an actual effect.
In correlation with the statement, incorporate the last date till which the customer can purchase at the earlier price. If you previously notify the customers of the last day to purchase on past value, to avoid the price change, they would purchase before it, to avoid the effect.
4. Rate of a price increase.
Introduce the change in the price either in the order of price or in percentage. Suppose, the previous selling price of the product was Rs.2400. The new selling price is determined at Rs.2760. You could mention the direct raise in the price of Rs.360, or state the percentage of 15%. Based on your advertisement technique, you could catch the price format.
5. Product specification.
Your company must have a range of products. If the increase in price rate applies to each product in the range, then the understanding specification is essential. But if it is limited to certain products, then specify the same. Write the name of the products that will be affected by the increase in price and the rest will be the same, or else it is bound to create blurring among the clients. Hence it is better to be cleared of it.
6. Provisions or conditions.
Due to the sudden hike in price, companies choose to distribute some offers for their customers or clients who will be purchasing the product after the change. If a certain policy is in the plan, make sure to incorporate it in the letter.
For example, as an appreciation, the company is offering a 5% discount on the purchase of the product after the date of the action. This is similar to compensation or the premium policy that could adjust the blow.
7. Statement of appreciation.
Your loyal customers would be pleased to perceive the appreciation post along with the price change. Inclusion of some statement of appreciation would be a nice balance.
8. Open to questions.
Inform your client or the customer regarding the availability of the customer service department. If they need information about the rise in price for having an inquiry concerning it, they could easily mail or call on the given number. Your company should be always present when the customers reach out a questionnaire.
Ceilings Price Increase Notice Template |
Product Price Increase Notice Template |
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Sample price increase letter due to covid-19 |
Price Rise Notice Template |
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What to Write in a Price Increase Letter?
Send your existing customers the correctly formatted and written rate price increase letter. Follow formal letter format while writing the letter. The format would be easy to follow, but the style of writing and the content is a major thing to focus on. Check the contents discussed above, and presently let’s get into the process.
Justifying the raise would not help you get your customers back, but focusing on the value-added and its relatable reason can surely do. Hence learn how you can write a price increase letter template and convince your clients.
1. Company information.
Put your information at the start of the price increase letter. It is the general format of formal letter style that you may need to mention here as well. The first line would be your company name followed by its address and contact details.
2. Specify the date.
Leave a line and write the date on which you are writing the letter.
3. Client information.
After the date, leave a line once again and then put the client information just as you did in company information.
4. Subject of the letter.
The subject of the letter is the one-line statement that reveals the purpose of the letter. You might underline the statement as well to highlight it.
For example, a Rise in the product price.
5. Salutation.
Being a formal letter, it is not viable to use the “Dear” before the name. Simply put the recipient’s name after the subject.
6. The first paragraph/ introduction.
The first stanza of the letter must hold the purpose of the letter and its effective date. Include the subject, the percentage of the rising price, the effective date, and a brief reason in the introduction.
7. The second paragraph/ body.
The second paragraph of the letter would consist of the reasons in detail and the new offer. If your company is holding the past price till the date of effect, state it in the letter, so they could grab the opportunity and make their purchase to avoid the sudden price increase.
8. Third paragraph or conclusion.
Conclude the letter by showing some appreciation towards your client and customers. The client who is in collaboration with your company for enough years is a right holder of appreciation. Therefore you must show affection and gratitude towards their collaborative nature and trust.
Do not forget to include the notice that your company is open to any questions or concerns. State the availability of the customer service department and the sales department, and they would be happy to receive your call and discuss any issue.
9. Lastly, put your name, signature, and designation.
Follow this formatting style to craft the price/ rate increase letter.
Price Increase Notice Template For All Regions |
Price Increase Customizable Letter Template |
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Guidelines to write the price increase letter.
Some factors must be considered while opening down the sentences in the price/ rate increase letter template two customers due to exchange rate. Correctly formatting the letter is the first factor that we have already discussed, but the way you present the letter is also a form. The statement to write, if direct and specific, is more comprehensible to people. Hence the style of writing is the second factor that would make a huge impact on the customers and the client. So while you write the letter, be conscious of the following things.
1. Clear and concise.
The rate increase letter template must be clear and concise. The letter must get finished within a page, if it goes beyond a single sheet, it requires modification and some direct sentences. The use of more indirect sentences is probably going to make you lengthy, so avoid using any uncertain terms and keep it direct and specific.
2. Specific reason.
Do not move around with the single reason in the letter. Use a direct sentence to write the reason and stop the topic there. The more you stretch the reason, the more you will be putting out the increase in the price in front of the customer and client. Finish the reason in a sentence or more. Most importantly while you put up the sentences it must not have any negative vibe.
3. Proper justification.
Support the reasons with valid points. If you have any statistical data to show, then put the percentage as and the increasing curve. It is just that your reason must have a strong case of justification. The customer should understand your deliberation.
4. Express gratitude.
It could be less to talk about the significance of appreciation. Your company is already hiking the price, balance it off by expressing some gratitude. Just a normal calculation, that the sudden price increase might cost loss in customer count, but by expressing some gratitude and putting up some gestures could hold on to them. The customers who have been loyal towards your company and the client who is with you for few years would continue to be with your company and be in hand.
5. Propose help.
It is usual for the customers and the client to have queries about your sudden increase in price and other details of it. Your company must be ready to answer those possible questions and the queries the client comes up with. It might be regarding the product range to which the price increase is applicable or about the date of effectivity. Therefore it is recommended to inform your customer service department and the sales department of the price rise beforehand so they could handle the customers and the clients.
Write the letter at least two weeks before the date of effect. A sudden price increase would be taken as a good indication neither by the customers nor by the client. Information or announcement at least two weeks before notice would come them down and might be successful to avoid the strict effect.
Rate increase letter template word |
Hourly rate increase letter |
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Short Form Price Increase Letter Template |
Sample Price Increase on the Daily Mail Template |
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Rate Increase Letter |
Sample Rate Increase Letter |
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