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Every service business has to raise prices eventually. As your costs go up and your expertise grows, your rates need to reflect the value you’re actually delivering. Customers usually understand that—they just need you to explain it clearly so they know exactly what they’re paying for.
In this guide, we’ll explain how to communicate price increases to customers using clear letters, emails, texts, and scripts. We’ll cover timing, messaging, common mistakes, and practical strategies to reduce pushback. You’ll also find ready-to-use templates for standard updates, recurring services, longtime customers, SMS announcements, and in-person conversations.
Key takeaways:
Here are some quick tips to help you communicate price increases:
Lean on your tools: Automated texts, emails, and updated price books help you roll out new pricing smoothly without slowing down your day.
Build trust with advanced notice: Giving a heads-up strengthens customer relationships and reduces pushback.
Keep explanations simple: Clear, plainspoken reasons help customers understand the price change without getting lost in the details.
Use templates to stay consistent: Reusable messages save you time and make every future price update easier to roll out.
Jump ahead
- What a price increase letter is
- Why do businesses raise prices?
- How do you know it’s time to increase your prices?
- When to send a price increase notice
- How to tell customers you’re raising prices
- How to write a price increase letter: Templates you can copy
- How much notice should you give before raising prices?
- How to reduce pushback from customers
- Common mistakes to avoid
What a price increase letter is
A price increase letter, sometimes called a rate increase letter or price increase notice, is a short message explaining that your service rates are going up, why the change is happening, and when the new pricing takes effect. You can deliver it through email, text, or during an in-person conversation depending on the customer.
Why do businesses raise prices?
Most trade businesses adjust their prices once a year to stay profitable as labor, materials, insurance, fuel, and equipment costs rise. Even small increases help cover the real cost of doing business.
If you’re reviewing your pricing overall, check out our pricing guides for competitive benchmarks and clear steps on how to set your rates:
- How To Price HVAC Services
- How To Price Plumbing Jobs
- How To Price Electrical Work
- How To Price Handyman Jobs
- How To Price Lawn Care and Mowing Services
- How Much to Charge for House Cleaning
How do you know it’s time to increase your prices?
Raising your prices isn’t just about chasing bigger profits—it’s about covering rising costs and positioning yourself as a high-quality service provider. Here are some signs it’s time to update your pricing:
- Rising operational costs: When materials, labor, or overhead costs go up, a price increase keeps your business sustainable and protects your margins.
- Market and competition changes: Keep an eye on competitors. If they raise prices, it could be a cue to adjust yours too—without undercutting the quality and service you deliver.
- Attracting higher-value clients: Higher prices can signal higher-quality service, helping you bring in clients willing to pay more for top-notch work.
- Growing demand: If more customers want your services, a price increase reflects the value you provide and helps balance supply with demand.
When to send a price increase notice
Timing plays a big role in how customers receive your message. You want to give people enough time to prepare without announcing the change so far in advance that they forget about it.
Most pros send notices:
- 30–60 days before prices change
- Before upcoming renewals or recurring visits
- Whenever material or labor costs rise significantly
If your business uses recurring visits or maintenance plans, make sure your recurring service plans stay aligned with your updated pricing.
How to tell customers you’re raising prices
Your message doesn’t need to be dramatic or defensive. Clear language and a calm tone do far more than paragraphs of explanation.
Before sending anything, decide:
- Exactly what the new rate will be
- When the new rate takes effect
- Whether recurring customers get a loyalty or phased rate
- How the update affects scheduled visits
With Housecall Pro, you can send automated emails and texts to notify all your customers at once.
How to write a price increase letter: Templates you can copy
These price increase email templates and scripts work for any home service business. Replace the placeholders with your details and adjust the tone to fit your customers.
Remember: Keep it short and respectful. Customers rarely need paragraphs—just clarity.
Standard price increase letter example
Use this for yearly increases or general operating-cost changes.
Subject: Update to our service pricing
Hi [Customer Name],
I hope you’re doing well. We’ve been reviewing our pricing to keep up with rising costs for materials, labor, and operations. To continue providing the level of service you expect, our rates will increase starting [Date].
Your new price for [Service] will be [New Price].
We appreciate your trust and want this change to feel as smooth as possible. If you have any questions, we’re here to help.
Thank you,
[Your Business Name]
Price increase letter for recurring customers
Use for maintenance plans, subscription-style services, or scheduled visits.
Subject: Important update to your service plan
Hi [Customer Name],
Thank you for being part of our recurring service program. To keep delivering reliable service and high-quality work, we’re updating our pricing for all recurring customers starting [Date].
Your new rate will be [New Price] per [Visit/Month/Quarter]. Your service schedule will remain exactly the same.
We value your loyalty and appreciate the opportunity to continue serving you. If you have any questions, feel free to reach out.
Thanks again,
[Your Business Name]
Loyalty-focused price increase letter
Use a softer approach for long-time customers.
Subject: Small update to your service pricing
Hi [Customer Name],
I wanted to personally reach out because you’ve been with us a long time. To keep up with rising business costs, we’re making a small adjustment to our pricing starting [Date].
Your updated price will be [New Price], which reflects a discounted loyalty rate we’re offering to long-time customers.
Your support means a lot to us. If you’d like to review your services or talk through options, I’m here to help.
Warm regards,
[Your Business Name]
Short text message example
Great for quick communication or customers who prefer SMS.
Hi [Name], this is [Business]. We’re updating our service pricing starting [Date]. Your new rate for [Service] will be [New Price]. Text us if you have questions.
In-person script
Use this for face-to-face conversations or phone calls.
“I wanted to give you a quick heads-up that our pricing is changing on [Date]. Because our costs have gone up for materials and labor, your new price for [Service] will be [New Price]. I wanted to tell you personally and make sure you had time to prepare. If you have any questions, I’m happy to walk you through everything.”
How much notice should you give before raising prices?
Most businesses give customers 30–60 days notice so they have time to prepare, or before their next appointment or billing cycle.
If the increase is significant, you might decide to:
- Temporarily grandfather existing customers
- Offer a loyalty discount
- Phase in the increase over a few visits
If you’re adjusting prices as part of a broader business update, you may find it helpful to streamline your workflow with tools like digital estimates and online scheduling so customers see your updated pricing before booking.
How to reduce pushback from customers
Customers tend to accept price increases when the communication is clear. You don’t need to justify every detail—you just need to be confident.
Here are simple ways to make the update easier:
- Explain the reason once, clearly
- Give enough notice
- Avoid apologizing or sounding unsure
- Highlight the value they continue to receive
- Stay consistent across customers
Pro tip: Updating your rates in Housecall Pro’s Price book ensures all new estimates and invoices show the new price automatically, helping you avoid inconsistencies and friction
Common mistakes to avoid
Small missteps can make price increases feel bumpier than they need to be. These are the most common ones pros run into:
- Sending notice too close to the effective date
- Over-explaining and getting lost in details
- Apologizing repeatedly
- Updating repeat customers but forgetting new ones
- Changing prices without updating your internal price book
Clear, consistent communication keeps everything running smoothly.
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On average, Pros increase monthly revenue generated through Housecall Pro by more than 35% after their first year.
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How Housecall Pro helps you manage pricing updates
When you update your prices, Housecall Pro automatically syncs changes across estimates, invoices, and recurring service plans, so you spend less time on busywork and more time growing your business.
With Housecall Pro’s field service software, you can:
- Update your price book in seconds
- Send automated notifications to customers
- Standardize pricing across your entire team
- Streamline scheduling with online booking
- Track revenue and customer retention after the update
Ready to simplify price updates? Start your free trial of Housecall Pro today and see how easy it is to keep your pricing consistent, professional, and stress-free.
FAQ
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What do I say if a customer pushes back?
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Acknowledge their concern, restate the reason for the change, and emphasize the value of your service. Stay calm and avoid negotiating unless you choose to offer a loyalty rate.
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Is email or text better for a price increase notice?
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Email is better for longer explanations; text works for short reminders. Use whichever channel your customer prefers.
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Can I raise prices mid-contract?
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It depends on your service agreement. Some contracts allow adjustments; others lock in rates for a set period.
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How often should I raise prices?
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Most service businesses adjust their pricing annually to match rising costs.
