Nothing sours a client relationship faster than a surprise on an invoice. That moment of confusion and frustration can undo months, or even years, of trust you’ve carefully built. The best way to avoid this scenario is to be proactive, and that’s where a thoughtful price increase notice comes in. It’s not just a letter; it’s a critical tool for managing expectations and showing respect for your clients' budgets and planning. By giving them a clear, professional heads-up, you control the narrative and turn a potentially negative event into a straightforward business update. In this post, we’ll cover how to deliver the news in a way that prevents sticker shock and reinforces your role as a trusted, transparent partner.
Key Takeaways
- Plan your communication with care: A price increase is a conversation, not just an announcement. Give clients 60-90 days' notice, be transparent about the "why," and prepare to answer questions with empathy to maintain trust.
- Craft a clear and professional notice: Your message should be direct and contain four essential elements: the specific new price, the exact date the change takes effect, a brief justification focused on value, and clear contact information for any follow-up questions.
- Lean on your contracts and technology: Before you do anything, review your client agreements. Then, use an automated billing platform to implement the changes seamlessly, which reduces manual errors, protects your revenue, and ensures a smooth transition for everyone.
What Is a Price Increase Notice?
A price increase notice is a formal announcement you send to clients to let them know your prices are changing. It’s easy to think of this as an awkward, dreaded task, but it’s better to see it as a crucial piece of client communication. This is your chance to be transparent, reinforce the value you provide, and show respect for the professional relationship you’ve built. Sending a clear, thoughtful notice is a standard part of running a healthy business, and it helps manage client expectations so there are no surprises when the next invoice arrives.
When done right, a price increase notice isn’t just about informing clients of a higher rate. It’s an opportunity to remind them of the great work you do and why your services are worth the investment. It sets the stage for a continued, mutually beneficial partnership and ensures that everyone is on the same page. Instead of dreading it, you can approach this as a positive step in your business’s growth. It’s a sign that your firm is evolving, improving its services, and investing in the tools and expertise that ultimately benefit your clients. It’s a professional and necessary conversation that solidifies your value and keeps your business moving forward.
Why Price Increase Notices Matter
Let’s be honest: no one loves sending a price increase notice. But avoiding it is far worse. Surprising a client with a higher-than-expected bill is one of the fastest ways to damage trust. Open communication is essential for maintaining customer loyalty, and that includes being upfront about pricing. A well-crafted notice shows your clients that you value their business and respect them enough to give them a heads-up.
Raising your prices is also a necessary part of adapting to business realities. Your own costs—for software, continuing education, rent, or staff—go up over time. A price adjustment ensures you can continue delivering the high-quality service your clients expect while running a sustainable firm. It’s not just about protecting your bottom line; it’s about ensuring you have the resources to be the best advisor you can be.
Common Types of Price Increase Notices
Not all price increase notices are created equal. The format and details will depend on your business model. For an accounting firm, you might be adjusting your hourly rate, the fee for a specific project like tax preparation, or the cost of a monthly bookkeeping retainer. Each scenario requires a slightly different approach, but the core components remain the same.
No matter the type, every notice should clearly communicate the essential information. This includes specifying which service costs are affected, the new pricing structure, the exact date the change takes effect, and a brief, professional explanation for the increase. Finally, always include your contact information so clients know who to reach out to if they have questions. This simple checklist ensures your notice is clear, comprehensive, and professional.
When Should You Send a Price Increase Notice?
Timing is a huge piece of the puzzle when you're announcing a price change. Sending the notice at the right moment can make the difference between a smooth transition and a client feeling blindsided. It’s not just about what you say, but when you say it. Let’s walk through how to pick the perfect time to deliver the news so you can maintain great relationships with your clients and keep your business finances healthy.
Find the Best Time to Send Your Notice
As a rule of thumb, give your clients 60 to 90 days' notice before a price increase takes effect. This is a solid, respectful timeframe that gives them plenty of runway to adjust their budgets and ask any questions. Nobody likes a last-minute surprise, especially when it comes to money. Think of it as a professional courtesy that reinforces the trust you’ve built. Beyond the calendar, consider your client’s business rhythm. Avoid dropping the news during their chaotic busy season or right before a major deadline you’re helping them with. A little empathy goes a long way in making the change feel fair and manageable, and giving them this ample time to adjust is key to a positive outcome.
What to Consider for Your Industry
Let’s be honest: for accountants and bookkeepers, talking about raising prices can feel incredibly uncomfortable. You’re in the business of helping clients manage their finances, so asking for more money can feel counterintuitive. But your own costs—for talented staff, better software, and continuing education—are going up, too. To keep providing top-notch service, your pricing has to reflect your value and your expenses. Many firms find that the natural rhythm of the business year provides a good opportunity. For example, discussing new rates as you plan for the upcoming year or before sending out engagement letters for the next tax season can make the conversation feel expected and routine. It's a necessary step to manage your own rising costs.
Check Your Client Contracts First
Before you draft a single email, go back to your original client agreement or proposal. Your contract is your source of truth and might already have a clause about price adjustments. Some agreements include terms for an annual review or a cost-of-living increase. If you engage clients on a yearly basis, they should already anticipate receiving a new proposal with updated pricing for the next term. This makes the conversation much less of a surprise and more of a standard business procedure. This is also where modern tools can make your life easier. Platforms like Anchor allow you to build interactive proposals with terms for automatic annual price increases, so this process is clear and agreed upon from day one.
What to Include in Your Price Increase Letter
Drafting a price increase letter can feel a bit like walking on eggshells, but it doesn’t have to be a source of stress. The key to a smooth transition is clear, honest, and thoughtful communication. A well-structured notice shows respect for your clients and reinforces the value you provide, helping to maintain a strong relationship. Think of it less as delivering bad news and more as a straightforward business update.
To make sure your message is received well, there are four essential components every price increase letter should have. By covering these bases, you’ll answer your clients' questions before they even have to ask, making the entire process feel professional and transparent. Let’s break down exactly what you need to include.
State the New Price Clearly
This is the most important part of your letter, so don’t bury it. Be direct and state the new pricing upfront. The last thing you want is for your clients to feel like you’re hiding the numbers in a wall of text. Clearly list which of your services are affected and what the new rates will be. For example, you might say, "Starting on [Date], our monthly bookkeeping services will be updated to [New Price]."
Being specific helps your clients understand the exact impact on their budget and shows that you respect their time. A price increase letter should be a tool for clarity, not confusion. If you offer multiple services or packages, consider using a simple list or a small table to show the old price next to the new one. This transparency is fundamental to keeping your clients' trust.
Explain When the New Price Takes Effect
Timing is everything. Giving your clients a heads-up well in advance is not just a courtesy—it’s a professional standard that shows you value their partnership. You need to give them enough time to adjust their budgets and plan accordingly. A good rule of thumb is to provide at least 60 to 90 days' notice before the new prices are implemented. This grace period prevents your clients from feeling blindsided and gives them space to reach out with any questions.
Be specific with the date. Instead of saying "the new prices will start next quarter," state the exact effective date, such as "This change will take effect for all invoices issued on or after October 1, 2024." This removes any ambiguity and sets clear expectations for everyone involved.
Justify the "Why" Behind the Increase
After you’ve stated the new price and when it takes effect, your clients will naturally wonder, "Why?" Being transparent about your reasons is crucial for getting their buy-in. You don’t need to write a novel or reveal sensitive business details, but you should provide a justification that connects the price change to the value you deliver. Frame it positively and focus on how the change will benefit them in the long run.
For instance, you could explain that the increase allows you to invest in better technology, expand your team to offer faster support, or simply keep up with rising industry-wide costs. An honest explanation like, "To continue providing the high level of service you expect and invest in new tools to better support your business, we are adjusting our prices," helps clients understand that the change supports the quality of work they rely on.
Tell Them Who to Contact and What's Next
No matter how clearly you write your notice, some clients will have questions. Make it easy for them to get answers. End your letter by providing clear contact information for a specific person or team who can address their concerns. This simple step shows you’re open to conversation and aren’t just dropping a price hike and running. It reinforces that you care about their business and are available to talk things through.
You should also outline any next steps. Do they need to sign a new agreement? For firms using a platform like Anchor, you can reassure them that their interactive proposals will be updated for their review and that the new billing terms will roll out automatically once approved. This minimizes friction and makes the transition seamless for them, turning a potentially negative interaction into a demonstration of your efficiency.
How to Write a Professional Price Increase Notice
Writing a price increase notice can feel like walking a tightrope. You need to be firm about your value but also keep your clients happy. The good news is that a well-crafted message can do both. It’s all about being direct, honest, and professional. When you handle it with care, you’re not just announcing a new price; you’re reinforcing the trust your clients have in you. Let’s break down how to write a notice that feels fair and keeps your client relationships strong.
Get the Tone Just Right
The first step is to get your mindset right. This isn't an apology; it's a standard business communication. Your tone should be confident, appreciative, and empathetic. Many businesses make the mistake of only focusing on the numbers, which can make clients feel ignored or unappreciated. Instead, frame the conversation around the continued value you provide. Acknowledge your partnership and thank them for their business. This approach shows respect for your client relationships and helps them understand that the change is part of your commitment to delivering excellent service, not just a random hike.
Words to Use (and Avoid)
The words you choose matter. Be direct and clear to avoid any confusion. Instead of saying, "We're forced to raise our prices," try something like, "We're adjusting our pricing to reflect the new features we've added." This frames the change positively. Use words like "adjustment," "investment," and "value." Avoid apologetic or weak language like "unfortunately," "sorry," or "we regret to inform you." It’s also best to provide a clear justification without oversharing. A simple explanation about improving service, adding value, or meeting rising operational costs is usually enough. Transparency is key to helping clients understand the "why" behind the change.
Mistakes to Avoid When Announcing a Price Change
Knowing what not to do is just as important as knowing what to do. One of the biggest mistakes is waiting for the client to bring it up or springing the news on them without warning. Always be proactive and give them plenty of notice. Another common pitfall is being vague about the details. Clearly state the new price and the effective date. Finally, don't get sidetracked or overly defensive if a client has questions. Plan your discussion ahead of time, anticipate their concerns, and be prepared to calmly explain the value they’ll continue to receive. Poor communication can lead to dissatisfaction, so a little preparation goes a long way.
Price Increase Letter Templates You Can Use
Having a template makes the process much smoother. You can adapt it to fit your specific situation and brand voice. Here are a couple of examples to get you started.
Template 1: The Simple & Direct Notice Subject: An Update to Our Pricing
Hi [Client Name],
Thank you for being a valued client. We’re writing to let you know about an upcoming change to our pricing. Effective [Date], the rate for [Service Name] will be adjusted to [New Price].
This adjustment will help us continue to provide the high level of service you’ve come to expect from us. We truly appreciate your business and look forward to our continued partnership.
Best, [Your Name]
Template 2: The Value-Focused Notice Subject: Exciting Updates and New Pricing
Hi [Client Name],
We’re so grateful to have you as a client. As we continue to improve [Your Business Name] and add more value to our services (like [New Feature/Benefit]), we are adjusting our pricing structure.
Starting on [Date], your new rate for [Service Name] will be [New Price]. This change will allow us to invest further in [mention specific improvements, e.g., technology, team expertise, service offerings].
We’re excited to keep supporting your success.
All the best, [Your Name]
How to Communicate the Change to Your Clients
Let’s be honest: telling clients you’re raising your prices can feel incredibly awkward. But it doesn’t have to be a relationship-ender. In fact, when handled with care, it can be an opportunity to reinforce your value and strengthen your partnership. The key isn’t just what you say, but how you say it. A rushed, impersonal announcement can make clients feel like just another number, while a thoughtful, transparent approach shows that you respect their business and value their trust.
Think of this conversation as a checkpoint in your client relationship. It’s a chance to remind them of the great work you do and the results you deliver. A well-executed communication plan can prevent confusion, minimize pushback, and keep your clients happily on board. It all comes down to being direct, honest, and prepared. By planning your message and anticipating your clients' reactions, you can turn a potentially tricky situation into a smooth transition that benefits everyone.
Choose the Right Way to Deliver the News
This is not the time for a generic email blast. For accountants and professional service providers, your relationships are your greatest asset, and your communication should reflect that. A personal email sent directly to your main point of contact is the best approach for most clients. It’s respectful, direct, and gives them time to process the information privately. For your top-tier or longest-standing clients, a personal phone call before sending the official notice can go a long way in showing how much you value their partnership. The goal is to make your client feel seen and respected, not surprised by a line item on their next invoice. Effective client communication is all about choosing the right channel for the message.
Be Transparent to Build Trust
Clients are more understanding when they know the "why" behind a price increase. Vague justifications can feel like a money grab, so be open and honest. Are your own operational costs on the rise? Have you invested in new technology to serve them better? Are you expanding your team’s expertise? Frame the increase as an investment in the quality of service they receive. For example, you could say, "To continue investing in the best technology and talent to support your business, we are adjusting our rates." This approach builds customer trust by connecting the price change directly to the value you provide, assuring them that you’re committed to their success.
Prepare for Client Questions and Concerns
Before you hit "send," put yourself in your clients' shoes. What questions will they have? Prepare clear, consistent answers and consider creating a short internal FAQ document for your team. This ensures everyone is on the same page and can speak confidently about the changes. In your price increase notice, clearly designate a point of contact for any questions. This simple step shows you’re not hiding from the conversation; you’re inviting it. Being prepared demonstrates professionalism and can help you confidently manage any client objections that may come your way, turning potential friction into a productive discussion.
Plan Your Follow-Up Strategy
Not every client will welcome the news with open arms, and that’s perfectly fine. The most important thing is to have a plan for how you’ll respond to feedback. Decide ahead of time how you’ll handle different reactions. If a high-value, long-term client expresses serious concern, are you prepared to negotiate or offer a phased-in increase? For others, you may need to calmly reiterate the value you provide and stand firm on your new pricing. The key is to listen with empathy, respond professionally, and avoid getting defensive. A thoughtful follow-up plan is a critical part of your client retention strategy and shows you’re committed to the relationship, not just the revenue.
How to Handle Client Reactions and Keep Them Happy
Let’s be real: no one loves hearing that prices are going up. Even with the most perfectly crafted notice, you can expect some clients to have questions or concerns. That’s completely normal. The key isn’t to avoid any reaction at all—it’s to handle those reactions with grace and professionalism. How you manage this conversation can make the difference between keeping a happy, long-term client and losing one.
Think of this as an opportunity to reinforce your relationship. It’s a chance to remind them of the value you provide and show them that you’re a partner who is transparent and willing to listen. By preparing for potential reactions and approaching the situation with empathy, you can turn a potentially awkward moment into a trust-building one. It all comes down to being prepared, staying calm, and remembering the human on the other side of the invoice.
Understand How the Change Affects Your Clients
Before you can address your clients' reactions, you need to see the change from their perspective. A price increase for your firm is a budget increase for their business. Many businesses forget how their customers might feel, and just stating that prices are going up can make your clients feel ignored. Take a moment to put yourself in their shoes. Are they a small startup where every dollar counts? Or a larger company that values the time you save them above all else?
Acknowledging their position shows respect and empathy. You can even frame the increase around the benefits they’ll continue to receive, which helps them justify the added cost. This simple shift in perspective can change the entire tone of the conversation from a confrontation to a collaborative discussion about building a strong partnership.
Offer Alternatives or Options
One of the best ways to soften the news of a price increase is to give your clients a sense of control. Instead of presenting the new price as a non-negotiable demand, consider offering a few alternatives. This shows flexibility and a genuine desire to keep their business. For example, you could offer a discount if they sign a longer-term contract or pay for a full year upfront.
Another great option is to present tiered service packages. Perhaps they can move to a slightly different plan that better fits their new budget. With a tool like Anchor, you can easily create interactive proposals with different service levels, allowing clients to choose the option that works best for them. This turns the conversation from "take it or leave it" to "let's find what works for you."
Keep Your Clients Loyal
A price change is a critical moment in your client relationship, and open communication is essential for maintaining customer loyalty. Use this as an opportunity to gently remind them why they chose to work with you in the first place. Reiterate the value you bring to their business, whether it’s through time saved, problems solved, or strategic advice that has helped them grow.
If the price increase is tied to service improvements—like new software you’ve invested in or expanded service offerings—be sure to highlight that. You’re not just charging more; you’re investing back into the quality of service they receive. Frame the price increase as a necessary step to continue delivering the high-caliber work they’ve come to expect. This reinforces that you’re committed to their success for the long haul.
How to Handle Pushback
No matter how well you communicate, some clients will push back. It’s important not to take it personally. Prepare for some negative feedback and have a plan to respond calmly and professionally. The most important thing you can do is listen. Let the client voice their concerns without interrupting. Often, people just want to feel heard and understood.
Once you’ve listened, address their specific points with empathy. Avoid getting defensive and instead focus on finding a solution. While you shouldn’t necessarily cave on your new pricing, you can explore the options you prepared earlier, like different service tiers or payment plans. If you’ve truly highlighted your value and they still aren’t willing to move forward, it’s okay. Sometimes, clients outgrow your services, and it’s better to part ways amicably.
Use Technology to Make Price Increases Easier
Let’s be honest: the logistics of a price increase can be a real headache. Updating spreadsheets, drafting individual emails, and making sure every single invoice is correct takes time you probably don’t have. The good news is that you don’t have to handle it all manually. Using the right technology can turn a complicated, error-prone process into a smooth, automated workflow that feels almost effortless.
When you let software handle the administrative heavy lifting, you can focus your energy on the most important part: the client conversation. The right tools ensure your new pricing is rolled out accurately and consistently, giving you peace of mind and saving you from tedious manual work. Instead of dreading the implementation, you can feel confident that everything is happening exactly as it should, from updating your service catalog to collecting payment at the new rate. This is about working smarter, not harder, and letting automation support your firm’s growth.
Tools That Help You Update Prices
Imagine updating your prices in one central place and having that change automatically reflected in every new client agreement. That’s the power of a modern proposal and billing platform. Instead of manually adjusting line items in a Word document or spreadsheet, you can simply update your service library. From there, any new engagement letter you create will automatically pull in the new, accurate pricing.
This not only saves a massive amount of time but also dramatically reduces the risk of human error. No more accidentally sending an old template or forgetting to update a service price on a proposal. The system ensures you bill clients correctly from the moment they sign, creating a professional and seamless experience that builds trust.
How Automated Billing Simplifies Everything
Once your client agrees to the new price, the last thing you want is an awkward moment caused by a billing mistake. Automated billing systems take the guesswork and manual effort out of the transition. By setting an effective date for the price change, you can ensure clients are never caught off guard by a surprise invoice. The system handles the switch for you, so the first invoice at the new rate goes out on time and for the correct amount.
This level of automation simplifies your entire workflow. You don't have to set calendar reminders or manually adjust recurring invoices for dozens of clients. The platform does it for you, triggered by the terms in your signed agreement. This ensures a smooth transition and lets you charge what you're worth without the administrative burden.
The Power of Integrating Your Tools
Your billing process doesn’t exist in a vacuum. It connects to your proposal software, your accounting ledger, and your practice management tools. When these systems are integrated, data flows seamlessly between them, eliminating the need for duplicate data entry and reducing the chance of errors. For example, when a client signs a proposal, the information can automatically create a new billing schedule and sync with QuickBooks or Xero for easy reconciliation.
This integration is key to making price increases manageable. A well-crafted price increase letter includes the new pricing, effective date, and services affected. When your tools talk to each other, all of this information is captured and acted upon automatically, creating a single source of truth for every client engagement and saving you from chasing down data across different platforms.
Protect Your Revenue from Leakage
Every time you manually manage billing, you open the door to revenue leakage. It’s easy to forget to apply a new rate, delay the increase by a month, or simply make a typo on an invoice. These small mistakes add up over time, costing your firm significant money. Proactively communicating changes and then locking them in with automation is the best way to protect your bottom line.
Automated systems ensure that price increases are implemented consistently and accurately across all your clients. There’s no "I'll get to it later" or waiting for a client to bring it up. The new terms are captured in a signed agreement and the billing happens automatically, precisely as planned. This removes human error from the equation and can reduce revenue leakage from over 5% down to under 1%, ensuring you get paid what you’ve earned.
Covering Your Legal and Business Bases
Before you hit “send” on that price increase notice, let’s talk about the not-so-fun but super-important stuff: the legal and business groundwork. I know, I know—contracts and record-keeping aren’t nearly as exciting as crafting the perfect email, but getting this part right is what separates a smooth transition from a chaotic one. Think of it as your safety net. A little bit of prep work here will give you the confidence to handle any client conversations that come your way and ensure your business is protected. It’s all about making sure your ducks are in a row so the price change feels like a natural, professional step forward for your firm.
Review Your Contracts and Legal Obligations
First things first: pull up your client contracts. Your existing agreements are your source of truth and should be your first stop before making any pricing changes. Many contracts include specific clauses about how and when you can adjust your fees, including required notice periods or even caps on how much you can increase prices annually. Overlooking these details can lead to broken contracts and seriously damaged client relationships. Your price increase letter should always align with the terms you’ve both already agreed to. Using a platform with digital proposals makes this step much easier, as all your terms are stored in one accessible place, ready for review or amendment.
Know Your Industry's Rules
In the accounting world, timing is everything. Most client relationships are built around annual engagements, which sets a natural rhythm for re-evaluating your pricing. If you work with clients on a yearly basis, they likely already expect to receive a new proposal or engagement letter from you at renewal time. This is the perfect, low-friction moment to introduce new pricing. Instead of sending a standalone price increase notice out of the blue, you can simply reflect the new rates in the updated agreement. This frames the change as part of your standard business operations rather than a sudden, unexpected cost hike for your client.
Keep Good Records of Everything
Documentation is your best friend. From the moment you decide to raise your prices, start keeping detailed records. This includes notes on why the increase is necessary, a copy of the notice you send, and a log of which clients have received and acknowledged it. This paper trail is invaluable if a dispute ever arises. Let’s be honest, poor pricing communication can be costly, and solid records are a key part of clear, professional communication. When your client agreements, billing history, and communications are all managed within a single system, you automatically create a comprehensive record that protects both you and your client.
Manage the Risks
Let’s address the elephant in the room: the fear of losing clients. It’s a valid concern, and yes, some clients might decide to leave. But you can significantly minimize this risk with a thoughtful approach. The biggest mistake is avoiding the conversation or sending a cold, impersonal email that makes clients feel cornered. When you’re transparent about your reasons and confident in the value you provide, you reinforce trust. This is also an opportunity to assess your client roster. A price increase can sometimes help you filter out clients who aren’t the right fit, making room for those who truly value and are willing to pay for your expertise.
Frequently Asked Questions
What's the best way to handle a long-term client who is really unhappy about the price increase? First, take a deep breath and don't take it personally. When a valued client pushes back, the most important thing you can do is listen. Let them share their concerns without jumping in to defend yourself. Often, they just want to feel heard. Once you understand their perspective, calmly reiterate the value you bring to their business and explain how the adjustment allows you to continue providing that high level of service. If it feels right, you could offer a flexible solution, like phasing in the new rate over a couple of months, to show that you value their partnership and are willing to work with them.
Is it okay to only raise prices for new clients and keep my loyal, long-term clients at their old rate? This is a really common question, and it comes from a good place—wanting to reward loyalty. However, this approach can create problems down the road. It can devalue your services over time and lead to a situation where your most demanding clients are paying your lowest rates. A better strategy might be to offer your long-term clients a special "legacy" rate that is slightly discounted from your new price but is still an increase from their old one. This acknowledges their loyalty while ensuring your pricing structure remains fair and sustainable for your business.
How much is too much? Is there a rule for how big a price increase should be? There isn't a magic number, as it really depends on your specific situation. Instead of focusing on a certain percentage, think about the "why" behind your increase. Your new price should reflect tangible factors like your own rising business costs, investments you've made in new technology or training, and the increased value you're delivering. A price adjustment that you can confidently justify is much more likely to be accepted by clients than one that feels arbitrary. Do a little market research to see what others are charging, but ultimately, anchor your new price in the value you provide.
My client contract doesn't say anything about price increases. What should I do? If your current agreement is silent on price changes, this is the perfect opportunity to introduce a new, more professional one. You can frame it as part of a standard annual review of your partnership. Send the price increase notice along with a new engagement letter that includes the updated rates and a clause for annual price reviews going forward. This not only addresses the immediate need to adjust your pricing but also sets clear expectations for the future, making this conversation a standard and expected part of your business relationship.
Should I call my clients to tell them about the price change instead of emailing? For most clients, a clear, well-written personal email is the best way to deliver the news. It's direct, professional, and gives them time to process the information. However, for your absolute top-tier clients—the ones who have been with you for years or represent a significant portion of your revenue—a personal phone call before you send the official email notice is a fantastic touch. It shows a high level of respect and reinforces how much you value their relationship, making the formal notice feel like a follow-up rather than a surprise.
