Business Letter Format for Price Increase: Tips

If there is a price increase then you need to inform about the same to your customers and clients in a formal manner and for that you need to write an effective price or rate increase letter to them. The business letter format for price increase is the right way of informing everyone of the change in pricing.

In this post, we have come up with guidelines on writing one such letter along with sample business letter for price increase. You can follow these tips and use the rate increase letter template, example to create a personalized letter.

How to Write a Rate Increase Letter (With Example)

We have come up with a certain points that must always be kept in mind while framing a price increase letter:

  • Always notify your clients about the increase in pricing in a direct and specific manner.
  • It is always a good idea to share with your clients the reasons behind increasing the prices. You can always share the market data, if you have any.
  • Include the date from which these increased prices stand effective.
  • Always end your letter by expressing gratitude towards your client for extending their support.
  • Make sure that you send across frequent and regular reminders about the increase in price.
  • Always extend your support in the end.
  • Do not forget to always keep the tone professional and polite.
  • Look for any kind of grammatical mistakes or spelling errors before send the letter to the clients.

Sample Format for Business Letter for Price Increase


Mathew Smith
Zenith Technologies
New York

Date: May 23, 2022


Mr. Robert Hilton
New Age Publications
New York

Sub: Letter for Price Increase.

Dear Mr. Robert,


I am writing this letter to inform you that because of constantly increasing fuel charges, we are compelled to increase the shipping charges across all our order limits. There will be a hike of 5% in our shipping rates on international as well as domestic orders which will be effective from July 1st, 2022.

We are extremely grateful for your constant support and understanding on this issue. In case you have any more concerns or questions then please write to us at [email protected] and we will be there to help you.

Thanking you.


Mathew Smith
Zenith Technologies
New York

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