How to announce a price increase successfully (with examples)

Alvaro Morales

There’s no two ways about it — price changes are a natural part of running a business. 

Adjusting your pricing structure is often necessary to sustain growth and profitability, whether due to rising costs, product improvements, or shifting market conditions. 

However, announcing a price increase can be daunting. You want to maintain customer trust and minimize any negative impact on your bottom line.

We’ll show you how to announce a price increase successfully by doing it in a clear, empathetic, and, above all, strategically sound way. 

We’ll cover:

  • Why and how you should let your customer know in advance
  • How to communicate price changes directly
  • How to explain the why behind price changes
  • How to soften the blow for customers
  • Tips on offering support after the announcements
  • Some templates and examples you can copy and use
  • Tips for handling customer feedback 
  • How Orb makes price increases easy

Let’s get started.

How to announce a price increase without upsetting your customers

Announcing a price increase doesn’t need to be an overly complex matter. Let’s explore some pro tips to make this process as frictionless as possible. 

#1 - Let customers know in advance

Nobody likes surprises when it comes to spending. Imagine if your favorite coffee shop suddenly raised its prices without warning — you'd probably feel a bit annoyed, right? The same goes for your customers.

Giving your customers advance notice about a price change is essential to keeping their trust. Here's why:

  • Respect and consideration: It shows you value their business and understand that price changes impact their budgets.
  • Time to adjust: Customers can plan financially and may even choose to “stock up” on your product or service before the price increase takes effect.
  • Reduces surprise: Sudden, unexpected price hikes can leave customers feeling blindsided, frustrated, or downright upset.

How much notice should you give?

Ideally, aim for at least a month's notice. This provides enough time for customers to process the change and make adjustments if needed. The specific timeframe might depend on your billing cycle or the nature of your business.

#2 - Communicate directly 

Think of a price increase announcement like handling any highly sensitive business matter — it's best addressed directly. The same principle applies to your SaaS users. 

Here's how to communicate a price increase directly and effectively:

  • Use the right channels: If you have customer email addresses, a well-crafted email is often the best way to inform them directly. Consider additional avenues like website updates, social media posts, or even face-to-face conversations for your highest-value clients.
  • Don't hide it: Place the price increase announcement prominently. Avoid burying it in an email newsletter or only vaguely mentioning it on social media. You want to ensure customers see the information.
  • Clarity is key: Be straightforward about the rate increase. Instead of using vague language, clearly state the new price, the effective date, and any important changes to service packages (if applicable). Confusing messages will only create frustration.

Why direct communication and clarity matter:

  • Avoids confusion: Nobody likes unpleasant surprises, especially with their finances. Clear communication ensures everyone's on the same page.
  • Shows professionalism and ownership: Directly addressing a price increase demonstrates you're a responsible business that's upfront with customers and owns a price increase.
  • Builds trust: Honesty and transparency are cornerstones of strong customer relationships, even during difficult changes.

#3 - Explain why you’re increasing prices

As discussed, transparency is everything when announcing a price increase. Your customers deserve to understand the reasons behind the change — it'll make the news much easier to accept.

Here's how to explain the price increase while focusing on the benefits for your customers:

  • Honesty above all: Don't hide behind vague excuses or sugarcoat things. If rising costs are causing the increase, say so. If it's due to investments in product improvements, explain that clearly.
  • Reframe it as an investment: Instead of focusing on the cost aspect, highlight how this price change allows you to provide even more value to your customers.
  • Paint the positive picture: Are you using higher-quality materials to improve your product's durability? Are you rolling out new features they've been requesting or expanding your customer support team to provide faster service? 

Clearly communicate how this change benefits them directly.

#4 - Be human and compassionate

While you need to remain professional, your message should not sound cold or robotic.  Remember, you're communicating with real people who may be feeling the pinch of a price increase.

Here's how to add empathy and a personal touch:

  • Acknowledge the impact: Show that you understand a price increase can be an adjustment for customers. A simple phrase like, "We recognize that a price change affects your budget..." works wonders.
  • Express appreciation: Thank your customers for their continued loyalty and support. This small gesture goes a long way in maintaining positive relationships.
  • Open the door for feedback: Provide a way for customers to contact you with questions or concerns. This could be a dedicated email address or suggesting they reply to the announcement itself.

#5 - Offer support

Change, even when justified, can bring about uncertainty. Show your customers you're there for them and ready to address any concerns they have. Here are a few tips to keep in mind:

  • Provide clear contact methods: List a specific email address and phone number. Don't make it complicated for them to find a way to contact you.
  • Anticipate common questions: Think about what questions customers might have. Including a brief FAQ section within your announcement can preemptively address potential concerns and reduce the volume of individual inquiries.
  • Respond promptly: Customer service is more important than ever when announcing a price change. Set a goal to respond to any customer inquiries as quickly and thoughtfully as possible.

Quick example:

"We understand that you may have questions regarding the price change. Please feel free to contact us at [email] or visit our FAQ page at [link to FAQ page]. We're always here to help."

This shows that their concerns matter, and you're committed to providing ongoing support.

Price increase letter templates and examples

The way you communicate a price increase significantly impacts how your customers receive the news. Below, you'll find adaptable templates for various scenarios, along with tips for tailoring them to different communication channels.

Template #1: Direct and informative

Dear [Customer Name],

We're writing to inform you that we'll be making adjustments to our pricing structure, effective [Date]. To maintain our high standards and continue providing exceptional value, the price of [Product/Service] will increase to [New Price].

We understand that any price change requires adjustment. Your current pricing will remain in effect until [Date]. For any questions or concerns, please reach out to us at [Support Email].

Thank you for your continued support.


[Your Company Name]

Template #2: Benefit-focused

Dear [Customer Name],

We're excited to continue growing our [Product/Service] offering and providing you with the best possible experience. To support these improvements, we'll be updating our pricing structure on [Date]. Your new monthly subscription will be [New Price].

Here's what you can expect with this change:

[Benefit 1]

[Benefit 2]

[Benefit 3]

We're committed to continuous improvement and providing you with value that exceeds the price. Should you have any questions, please don't hesitate to contact us at [Support Email].

Thank you for your ongoing loyalty.

[Your Company Name]

Template #3: Offering options

Dear [Customer Name],

We're reaching out to inform you that the price of [Product/Service] will increase to [New Price], effective [Date]. We understand this change might impact your budget, and we want to help you make a smooth transition.

Here are a few options to consider:

  • Lock in current pricing: If you'd like to maintain your current rate, you can upgrade to an annual subscription before [Date].
  • Explore different plans: Visit [Link to pricing page] to review our updated plans and see if another option better suits your needs.

We're always here to help! If you have any questions, feel free to contact us at [Support Email].

Thank you for being a valued customer.


[Your Company Name]

Don’t forget other channels

Remember, you can always adapt your templates to different channels:

  • Website announcements: Place a banner in a prominent location. Keep the message concise and direct, linking to a detailed explanation.
  • Social media: Create eye-catching posts with a brief summary of the change. Encourage engagement by asking for feedback or directing users to an FAQ page.
  • In-app notifications: Design non-intrusive pop-ups with the core information (price change, effective date). Include a "Learn More" option for further details.

Tips for handling customer feedback

Even with the best-crafted price increase announcement, it's natural to receive some negative feedback. Here’s how to handle this professionally:

  • Expect mixed reactions: Remember, not every customer will respond positively to a price change, and that's okay. Prepare yourself for some criticism or expressions of dissatisfaction.
  • Stay calm and professional: Take a deep breath before responding to any heated feedback. Avoid getting defensive or taking it personally. Your goal is to de-escalate situations and provide solutions where possible.
  • Listen attentively: Even negative feedback might contain valuable insights into how the price increase is impacting your customers. Pay attention and try to understand their perspective.
  • Empathize: Acknowledge their concerns and frustrations. A simple phrase like, "I understand your disappointment with the price increase," can go a long way in calming an upset customer.
  • Offer solutions: If possible, try to provide options or alternatives. Could you offer a temporary discount or a short extension at the old price for those struggling with the change? Even small gestures show you care about maintaining the relationship.

Next steps

Now you're equipped with strategies and clear examples for successfully announcing and managing a price increase. But implementing these changes smoothly is where the real challenge often lies.

One of the biggest hurdles is adjusting your existing billing systems to reflect new pricing structures. Thankfully, there's a reliable and flexible billing platform that can do this for you — and much more.

Orb offers a complete suite of tools designed to simplify and optimize your price increase implementation. Here's how Orb supports your evolving pricing strategies:

  • Streamlined price changes: Orb's flexible configuration allows you to effortlessly update pricing across different plans, tiers, or customer segments.
  • Seamless customer transitions: Automatically handles pro-rating, upgrades, and downgrades, ensuring a smooth transition to new pricing for your existing customer base.
  • Crystal-clear communication: Orb's customizable invoicing system can be tailored to provide detailed breakdowns of price changes for customers, fostering transparency and minimizing confusion.
  • Data-driven Insights: Orb's reporting features offer valuable insights into how the price increase impacts customer behavior, allowing for data-driven adjustments and better decision-making.
  • Adaptable to your growth: With tools like a Plan Builder, Orb allows for continuous refinement and experimentation with pricing models, ensuring your billing infrastructure scales alongside your business.
  • Developer-friendly: Our intuitive interface and comprehensive documentation make it easy for developers to integrate and manage pricing changes, saving precious time and resources.

Learn more about how Orb can solve all your billing and price change needs.

April 18, 2024

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