Many service businesses announce a price increase with a single email sent 30 days before the change, opening with rising costs. Clients read it as a problem being passed on to them, and the conversation starts on the defensive even when the increase is reasonable.
This guide covers the process I use with clients: two messages instead of one, each tied to what the client gets. It includes three letter templates you can adapt, a real example of a price change handled well and one handled badly, and a checklist to run before you send anything.
The two-step process: 60 days, then 30 days
Send two messages. The first goes out around 60 days before the change and tells the client a review is under way and pricing for the coming year will follow. It contains no numbers. Its job is to let the client expect a change before they see one.
The second goes out around 30 days before the change. It gives the new price, the date it applies from, and the specific improvements the client will see. By the time the figure arrives, the client has had a month to get used to the idea, and the number comes with reasons attached.
A web design agency I worked with used this approach after hiring two new team members. Their 30-day notice explained that the additions would shorten project delivery times while keeping the same quality checks. Clients could see what the increase paid for, and renewals held up after the change.
If you are still deciding how much to raise prices by, start with how to raise prices without losing clients, then come back here to write the messages.
Price increase letter templates
Copy these and replace everything in square brackets. The more specific the details you put in, the better they work. A client will respond to “we resolved 212 of your support tickets this year” far more readily than to “we continue to invest in quality”.
Template 1: the 60-day heads-up email
Subject: Our plans for [year] and a note on pricing
Hi [first name],
Each year we review how we work with clients and where we will invest next. We are doing that now, and I wanted to give you early notice.
Over the past year we have [one or two specific things you delivered for this client]. Next year we are planning to [the main improvement you are making].
I will write again on [date] with the full details, including our pricing for [year], which will apply from [effective date]. If you would like to talk it through before then, reply to this email and we will find a time.
Thanks for working with us,
[Your name]
Template 2: the 30-day price increase notice
Subject: Your [service] from [effective date]: what is changing
Hi [first name],
As mentioned in my note on [date of first email], here are the details of what changes from [effective date].
What we are adding:
[Improvement 1, and what it means for the client day to day]
[Improvement 2, and what it means for the client day to day]Your new fee: from [effective date], your [monthly / annual / project] fee will be £[new amount]. It is currently £[current amount].
What you need to do: nothing. Your [invoice / direct debit] will update automatically from [effective date].
If you have any questions, reply here or call me on [number]. I am happy to go through it with you.
[Your name]
Template 3: a short notice for small or routine increases
For a small annual adjustment, or clients on a low-touch service, one shorter message can be enough. Give at least 30 days’ notice.
Subject: Your [service] fee from [effective date]
Hi [first name],
A quick note that our [service] fee will change from £[current amount] to £[new amount] per [month / year] from [effective date]. This covers [the specific improvement, or the level of service you are maintaining, for example same-day response times].
You do not need to do anything. If you would like to talk it through, just reply.
[Your name]
How to word a price increase
Lead with what the client gets. “Due to rising costs” tells the client you are under pressure and asks them to absorb it. Opening with the improvements, and then stating the price, gives them a reason to accept the change. It is the same skill as explaining value-based pricing to clients: describe the outcome first and the number second.
Replace general reasons with specific ones. “Market conditions” and “inflation” say nothing about the client’s service. “This funds a second engineer on your account, so urgent issues are picked up within the hour” does.
Make existing value visible. You do not have to add something new to justify an increase. Many clients do not know everything you already do for them. A short summary of the year (projects delivered, issues resolved, time saved) is often enough.
Write with confidence. Use active phrasing such as “we are adding” and “from 1 April your fee will be”. Avoid apologies and passive phrases like “prices are being adjusted”, which suggest you are unsure about the decision.
Give an exact date. “From 1 April” removes the need for follow-up questions. “In the coming months” creates them.
A business coach I worked with had drafted: “Due to rising costs, our prices will increase next month.” We rewrote it to: “From 1 June we are adding weekly Q&A sessions and a custom assessment tool for every client.” The price went up by the same amount in both versions. The second version tells the client what they get for it.
A price change handled well: Amazon Prime Video
In early 2024 Amazon introduced adverts to Prime Video in the UK, with an extra £2.99 a month to remove them. For customers who wanted to keep the service they had, this was a price rise. This is the email Amazon sent.
The opening states the change and the reason for it, which is continued investment in content. It then compares the number of adverts favourably with other streaming services and offers the ad-free option straight away.
The middle section reminds the customer of everything included in Prime. This is the “make existing value visible” principle in practice.
The close confirms that no action is needed and repeats the ad-free option. The customer knows what is changing, when, what they still get, and what they can do about it.
A price increase handled badly: a web hosting provider
This email came from a hosting provider I used to work with.
The tone is apologetic, and the only reference to value is a general mention of improving infrastructure. The email could have summarised the services I was using, set out their plans for the year, or introduced products I might want. It did none of those things.
I moved to another provider soon after. I now pay more, for a service where I can see what I am getting.
Checklist before you send a price increase notice
- You have given at least 30 days’ notice, and ideally a 60-day heads-up as well.
- The message states the new price, the current price and the exact date the change applies.
- The reason is specific to the client’s service, with no references to general inflation or market conditions.
- It reminds the client of what they already receive.
- The language is plain and confident, with no apologies or jargon.
- Your largest or most sensitive clients get a personal version, or a call before the email.
- Anyone who speaks to clients knows about the change and how to answer questions about it.
- It tells the client what, if anything, they need to do.
What to say if a client pushes back
“Can we stay on the old price?” Thank them for asking, and restate what the new fee covers. If you want to offer something, offer time (for example, applying the new rate at their next renewal) and keep the price the same. A discount at this stage teaches clients that the price is negotiable.
“We are going to look at other providers.” Ask what they would want from an alternative. The answer tells you whether the concern is the price or something about the service, and gives you a chance to address it.
A client leaves. Some will. A client who leaves over a fair, well-explained increase was often a poor fit for the price your service needs to carry. The MSP case study shows what happened to one IT company’s client base and profit after an increase handled this way.
Next step
Draft your 60-day heads-up this week using Template 1. Before you settle on the new figure, it helps to know how far your current prices sit from the value you deliver. The Pricing Health Check shows you in a few minutes, and the guide to value-based pricing explains how to set a price from the client’s outcome.
If you run an MSP, the MSP Pricing Scorecard takes three minutes and gives you a score and a full report by email.
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