Price increase letter templates
Eight price increase letters for suppliers with customer price lists: notice periods, raw material reasons, a named contact and a reply for pushback.
By the PromptLab team6 October 20265 min read
Nobody enjoys sending a price increase letter, and nobody enjoys receiving one. A good one is early, clear and specific. It says what changes, when, why, and who to call. It does not apologise at length or hide the number in the fourth paragraph.
These templates are for suppliers whose customers are on price lists: distributors, packaging makers, coatings and chemical companies. Put your own figures into the placeholders. Check your contracts and local rules for notice periods before you send anything. For the list side, see how to manage customer-specific price lists and what is a customer price list.
Letters to send in advance
Subject: Price change for [Product category] from [Date]
Dear [First name], I'm writing to let you know that our prices for [Product category] will go up on [Date]. The reason is a rise in the cost of [Raw material or input], which we've absorbed since [Month]. Your new prices are in the attached price list. For example, [Product] moves from [Old price] to [New price] per [Unit]. Orders confirmed before [Date] will be invoiced at the current price. If you'd like to order ahead of the change, let me know and I'll arrange it. If you have any questions, I'm your contact: [Phone] or [Email]. Kind regards, [Your name]
Use it for your regular customers, with at least the notice your contracts require.
Subject: Your prices for [Year]: notice and a price hold
Dear [First name], Our price list changes on [Date], and I'm writing early so you can plan your purchasing. If you confirm your expected volume for [Period] by [Date], I can hold your current prices on those quantities until [Date]. After that, the attached list applies. I'd rather agree this with you now than have it come as a surprise on an invoice. Kind regards, [Your name]
Use it for key accounts where you can offer a hold in return for a volume commitment.
Subject: Freight surcharge from [Date]
Dear [First name], From [Date], we'll add a freight surcharge of [Amount] per [Unit] to deliveries to [Region]. Carriers have raised their rates and we can no longer absorb the increase. The surcharge will appear as its own line on your invoice, and we'll remove it when rates fall back to [Level]. Product prices aren't changing. If you'd like to talk about collecting from our site instead, I'm happy to help. Kind regards, [Your name]
Use it when the cost is a surcharge and not a list price change.
For different situations
Subject: Small price adjustment from [Date]
Hi [First name], A short note: from [Date], our prices rise by an average of [Percentage] to cover [Reason]. Your updated price list is attached. Nothing else changes: same product, same service, same terms. Call me if you have questions. [Your name]
Use it when the rise is small and the relationship is relaxed.
Subject: [Product]: price change from [Date]
Dear [First name], Our supplier of [Raw material] has raised its price, so [Product] goes from [Old price] to [New price] per [Unit] on [Date]. Everything else on your list is unchanged. If a different grade would suit your process at a lower cost, I can send a sample. Kind regards, [Your name]
Use it when only one line is affected. Offering an alternative shows you are thinking about their cost too.
Subject: Your prices stay the same for [Period]
Hi [First name], Good news: while many prices in our market are rising, we're keeping yours for [Product category] unchanged until [Date]. I mention it so you can plan purchasing with that in mind. [Your name]
Use it only when it is true. A hold you announced makes a later rise easier to explain.
When the customer pushes back
Subject: Re: Price change from [Date]
Dear [First name], Thank you for telling me how you see it. I understand a rise isn't welcome. The change comes from [Specific cost, in one line]. To soften it, I can look at [Option: a larger pack, a volume agreement or a different delivery schedule] so the effect on your total cost is smaller. Could we talk this week? I can do [Day] or [Day]. Kind regards, [Your name]
Use it when a customer writes back unhappy. Don't argue: offer a way through.
Subject: Reminder: price change on [Date]
Dear [First name], A reminder that our new prices apply from [Date]. The updated list is attached again. Could you confirm you've seen it, so there are no surprises on your next invoice? If you plan to order before then, tell me and I'll make sure it goes through at the current price. Kind regards, [Your name]
Use it about a week before the date.
How to personalise them
Customers read a price letter line by line. Write it that way.
- Send it to the right person. Purchasing, and often the person who approves invoices as well.
- Use their price list. Don't send a general list when the customer has special prices. Show what changes for them.
- Name a human contact. A person with a phone number calms a customer more than a "customer service" address.
- Tell your reps first. Send the letter after your team knows the numbers and the answer to "why". Customers will call them.
Send them from your CRM
Frequently asked questions
How much notice should I give for a price increase?
It depends on your contract and your market, so check both. Where nothing is fixed, a month or more gives purchasing teams time to plan and order ahead. Key accounts often deserve longer.
Should I explain the reason for the price increase?
Yes, in one or two specific sentences. "Raw material costs have risen" is weaker than naming the input and when the cost changed. Don't over-explain.
Should I send a price increase by email or by letter?
Email is usual, with a PDF of the new price list attached. For contracts that require written notice, send a letter as well. Follow the terms you agreed with the customer.
What if a customer threatens to leave?
Listen first, then offer options that reduce their total cost rather than only cutting the price: volume deals, bigger packs, consolidated deliveries. If you cannot keep them at a profit, it is better to know early.
How do I manage different prices for different customers?
Keep one price list per customer, or per group, in your CRM. In PromptLab, you link a price list to a quote, and the quote offers only the products on that list at that customer's prices.