Notice Sample Letter to Inform Customers of Price Increase

Many companies increase prices of their products from time to time. You may wonder why they do that. Is it only to earn higher profits or for any other reasons is the question.

The companies increase prices when the raw material costs increase, manpower costs increase, cost of operation increase, general inflation increases, demand for the product becomes exceptionally high, and for similar reasons.

It is the duty of a company to intimate its loyal customers who have been procuring its products for a long time about the changes in the prices of its products and services. Here is an example of such an intimation and announcement letter to the customer.

TEMPLATE

[Date]

To

[Name of the Customer]

[Organization, if any]

[Address]

RE: Change in rates.

Dear Mr./Ms. [Name],

Greetings of the day!

Please be advised that there will be a small increase in prices of our products and services in the coming days. This has been a challenging decision for our team. We understand that it directly impacts our loyal customers. We want to assure you that we will continue to provide higher quality products and services to you.

Due to several market factors including increase in shipping and material costs, overhead expenses, and yearly inflation, we were forced to increase our prices. However, please note that all orders placed before [Date] will be honored at the current pricing.

Enclosed, please find a copy of our new price list. This shall come into effect from [Date].

We are happy to answer any questions that you might have in this matter. Please reach out to us on 123-456-7890, or send us an email at [email protected]. We look forward to our continued association with you.

Thank you for your understanding and cooperation.

Yours faithfully,

    (Signature)

[Name of the Officer]

[Designation]

[Name of the Organization]

Encl: A/a.