Service Price Increase Letter Template for Small Businesses
Customers need to know whether fees apply per hour, visit or project.
Define scope
Explain the billing unit, included service and effective date. If taxes or expenses are extra, make that transparent.
Letter example
Dear [name], beginning [date], the fee for [service] will be [amount] per [unit]. We appreciate your continued trust and welcome your questions.
Existing agreements
Check prepaid work, accepted quotations and signed contracts before changing the rate.
Evaluate profitability
Compare revenue per service and the variable costs associated with serving each customer.
Example for hourly services
Dear [client], from [date] our hourly rate for [service] will be [amount]. Previously accepted quotes and ongoing work will continue according to [agreement]. We appreciate the opportunity to work with you.
Example for recurring visits
From [date], each [visit/service] will cost [amount] and continue to include [specific elements]. Please contact us before your next booking if you need clarification.
Differentiate a service letter from a general notice
Service letters should specify the billing unit, scope, exclusions and existing commitments. A short public notice may not cover those contract-specific details.