A price increase letter (also called a price increase notice) tells a client what they pay now, what they will pay, the date the new price starts, and why it is changing. Send it 30 to 90 days before the change, depending on the contract and the size of the increase, and keep it short, specific and free of apology. The eight templates below cover the most common client situations, each with a subject line you can copy.
Price increase letter or notice?
People use the two terms interchangeably. A letter is usually a personal message to one client, and a notice or announcement is the same information sent to a wider list of customers. Accounting and professional services firms mostly need the letter. If you bill hourly or on a monthly retainer and want wording built around your rate, see the guide to the rate increase letter for hourly and retainer clients. If your clients know your pricing as "fees" (tax returns, audits, fixed-fee packages), the fee increase letter guide uses that vocabulary.
8 price increase letter and notice templates
Replace every [Placeholder] before sending.
1. Accounting firm price increase letter
Use this for tax, bookkeeping or advisory clients on an annual engagement letter. It works best when you send it with the renewal.
Subject: Update to your [service] fees from [Effective date]
Hi [Client Name],
I'm writing to let you know that from [Effective date], your [monthly bookkeeping / annual tax preparation] fee will change from $[Current fee] to $[New fee].
The change reflects [specific reason, e.g. the additional month-end reconciliation work we now do for you, or a new tax manager on your account], and brings your engagement in line with the fee we quote for the same scope today.
I'll send an updated engagement letter for you to sign by [Date]. To walk through it, book 15 minutes with me: [Calendar link].
Thank you,
[Your Name]
[Firm Name]
2. Retainer client price increase letter
Use this for monthly retainers (bookkeeping, CAS, fractional CFO, marketing or legal retainers). Name the scope that has grown since the client signed.
Subject: Your monthly retainer from [Effective date]
Hi [Client Name],
A quick update on your [service] retainer. Starting [Effective date], your monthly fee will move from $[Current fee] to $[New fee], an increase of [X] percent, as part of our annual fee review.
Since you joined us in [Year], the work has grown: [1 to 2 specific examples, e.g. two new entities and quarterly board reporting]. The new fee reflects the scope we deliver today.
I'll send an updated agreement for your signature, and the new fee will apply from your [Month] invoice. Happy to set up a call if you have questions.
Best,
[Your Name]
3. Project-based client price increase letter
Use this for clients who buy one project at a time. Existing quotes stay valid, which removes most objections.
Subject: Updated project pricing from [Effective date]
Hi [Client Name],
I'm updating my project rates from [Effective date]. Any proposal I send after that date will use the new pricing, which starts at $[New starting price] for [project type].
Projects we have already quoted, including [current project name], keep the price we agreed.
I'm looking forward to the next one. Let me know when you're planning it and I'll hold time for you.
[Your Name]
4. Freelancer or consultant rate increase email
Use this if you are a solo practitioner or small consultancy writing to clients you know well.
Subject: My rates for [Year]
Hi [Client Name],
It's been a good year working together on [project or outcome]. I wanted to give you plenty of notice that from [Effective date], my rate will move from $[Current rate] to $[New rate] per [hour / day / month].
The work stays the same. This brings your rate in line with what new clients have paid since [Month]. Happy to jump on a call if you'd like to talk it through.
Thanks for the partnership,
[Your Name]
5. Short price increase email
Use this for month-to-month clients with no formal contract and increases under about 10 percent, where a full letter would feel out of proportion.
Subject: Price update from [Effective date]
Hi [Client Name],
A short heads-up: from [Effective date], the price for [service] will be $[New price] (currently $[Current price]). Your next invoice on [Date] will show the new amount.
Any questions, just reply to this email.
Thanks,
[Your Name]
6. Price increase notice to customers (B2C or list announcement)
Use this when you announce one change to many customers at once, by email, invoice message, website or customer portal.
Subject: Our prices are changing on [Effective date]
Hello [Customer Name],
From [Effective date], the price of [product, plan or service] will change from $[Current price] to $[New price].
Why: [one sentence, e.g. our supplier and labor costs have risen over the past year, and this change lets us keep the same service level].
What this means for you:
- If you are on a [monthly / annual] plan, the new price applies from your first renewal on or after [Effective date].
- Orders and bookings confirmed before [Effective date] keep the current price.
- [If relevant: You can change or cancel your plan at any time here: [Link].]
Questions? Contact us at [Email or phone].
Thank you for being a customer,
[Business Name]
7. Annual fee escalation notice (when the contract already allows it)
Use this when the engagement letter contains an annual escalation clause like the ones later in this guide. You are reminding the client of a term they already signed, so the letter is shorter and asks for no signature.
Subject: Your annual fee adjustment from [Anniversary date]
Hi [Client Name],
As set out in section [X] of our engagement letter dated [Date], fees adjust each year on the anniversary of the agreement. From [Anniversary date], your [monthly] fee will change from $[Current fee] to $[New fee], an increase of [X] percent.
[If CPI-linked: This matches the [X] percent change in the U.S. Consumer Price Index (CPI-U) for the 12 months ending [Month Year], published by the Bureau of Labor Statistics.]
There is nothing you need to sign. The new amount will appear on your [Month] invoice. If your needs have changed, I'm happy to review the scope with you.
Best regards,
[Your Name]
8. Legacy client catch-up increase letter
Use this for a long-standing client paying well below your current fee for the same scope. If the gap is large, step the increase over two renewals.
Subject: Bringing your [service] fee up to date
Hi [Client Name],
You've been with us since [Year], and I'm grateful for that. Over that time your fee for [service] has stayed at $[Current fee], while the fee we quote for the same scope today is $[Current standard fee].
To close that gap fairly, we'll move your fee in two steps:
- $[Step 1 fee] per [month] from [Date 1]
- $[New fee] per [month] from [Date 2]
The work we do for you, including [specific deliverables], does not change.
I'd like to walk you through this personally. Could we find 20 minutes in the next two weeks? [Calendar link]
Thank you,
[Your Name]
How much notice to give clients
The contract decides first. Where it is silent, the lead times below are practical recommendations that give the client time to budget and sign any amendment before the next invoice.
The escalation clause row is where a well-drafted engagement letter pays off. Edward Mendlowitz, CPA, writing in the AICPA's Journal of Accountancy, lists an engagement letter clause that raises rates annually or periodically as one way to increase fees, and notes that such clauses "usually provide for no special notification." A short reminder still keeps the first higher invoice from feeling like news.
What to include in a price increase letter
If you write your own letter, check it against this list:
- A subject line that names the topic. "Update to your bookkeeping fee from January 1, 2027" works. "Important account update" reads like spam.
- The change in the first two sentences. Old fee, new fee, service and effective date, as exact numbers and a calendar date.
- One reason. Choose cost-driven or value-driven framing and stay with it. Listing every reason at once sounds defensive.
- What happens next. Whether the client signs an amendment, when the invoice changes, and who to contact.
- A specific thank-you, or none. "It's been a strong year working with you on the POS migration" means something. "Thank you for being a valued client" does not.
Explain the reason with one fact
Cost-driven increases are easier to accept when the client can check the number. Over the 12 months ending September 2026, the Consumer Price Index for All Urban Consumers (CPI-U) rose 3.7 percent before seasonal adjustment, according to the Bureau of Labor Statistics release of October 14, 2026. An increase near that figure is easy to explain as keeping pace with costs. Mendlowitz makes the same point in Accounting Today: an across-the-board percentage increase is less a fee increase than "a passing on of increased costs." A sentence you can adapt:
"Prices across the U.S. economy rose 3.7 percent over the 12 months to September 2026 (Bureau of Labor Statistics, CPI-U). Our costs for staff, software and insurance have risen in line with that, and your new fee reflects this."
BLS publishes a new CPI figure every month, so update it before you send. If your increase is well above inflation, use the value-driven framing and name what has changed in the work.
Sound confident, not apologetic
"We regret to inform you" becomes "I'm writing to let you know." Apology language signals that you doubt the new fee, and clients hear the doubt. Compare "we will be making an adjustment to our service pricing structure to align with current market conditions" with "Starting January 1, 2027, your monthly bookkeeping fee will move from $550 to $625 to cover the extra month-end reconciliation work." The second gives the client a number, a date and a reason they can repeat.
For accounting firms: build the next increase into the engagement letter
Most firms write a price increase letter every year because the engagement letter says nothing about price changes. Adding an escalation clause turns the annual increase into a term the client agreed to at signing, and template 7 becomes the only letter you need.
Three common forms of the clause (have your attorney adapt one before use):
Option A: CPI-linked
"Beginning twelve months after the effective date of this agreement, and on each anniversary thereafter, the fees in Schedule [X] will increase by the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, all items, published by the U.S. Bureau of Labor Statistics, for the most recent twelve-month period available, subject to a minimum increase of [X] percent and a maximum increase of [Y] percent. [Firm Name] will confirm the adjusted fees in writing at least [30] days before they take effect."
Option B: Fixed percentage
"The fees in Schedule [X] will increase by [4] percent on each anniversary of the effective date of this agreement."
Option C: Stepped (for legacy catch-up)
"The fees in Schedule [X] will increase by [8] percent on the first anniversary of the effective date of this agreement and by [4] percent on each anniversary thereafter."
A CPI-linked clause tracks inflation but can fall short when the work has expanded. A fixed percentage is simpler to forecast. The floor and cap in Option A protect the firm from a low-inflation year and the client from a spike. For getting the new fee onto the invoice without re-keying it, see the guide to automating annual price increases at accounting firms. If you are also rethinking the fee model itself, the guide on how to price accounting services compares fixed-fee, value and hourly pricing.
Larger one-time catch-ups are sometimes justified. Mendlowitz, writing in Accounting Today, has documented catch-up increases of 30 to 40 percent for clients whose work grew over several years without a matching fee change. Template 8 and a stepped clause are the gentler route to the same place.
How to update an existing agreement
The price change only takes effect when the agreement and the billing reflect it. Firms that skip this step often invoice the old amount for a month or two because nobody updated the recurring charge.
- Check what the agreement allows. With an escalation or fee change clause, follow its notice terms and confirm the new fee in writing. Without one, you need a signed amendment or a new engagement letter at renewal.
- Send the amendment with the letter. State the new fee, the effective date and that all other terms stay the same.
- Get the signature before the effective date. Follow up once after seven days; the follow-up email templates guide has short nudges.
- Update billing for the right cycle so the first invoice on or after the effective date shows the new amount.
- Keep the record of the letter, the signed amendment and the date sent.
How Anchor handles this
In Anchor, the signed engagement letter and the billing schedule are the same record. You send a fee change as an amendment to the existing agreement, the client approves it online, and the next invoice charges the new amount to the payment method already on file. Agreements can also include an annual price increase term that Anchor applies on the anniversary date.
How to handle pushback
Most pushback arrives in the first week and much of it is a reflex. Listen, restate what the client receives, and have a scope option ready. Decide before the letters go out which clients get flexibility: long-tenure clients who pay on time are good candidates, while late payers and chronic scope-creep accounts are not.
Scripts for the conversation
- First response to "That's too much": "I understand. The new fee reflects what the work now involves. If it doesn't fit your budget, the most useful thing we can talk about is what we adjust, because I'd like to keep working with you."
- Offer a scope alternative: "We can keep your fee at $[Current fee] if we move to quarterly reviews instead of monthly, or if your team handles [task] in-house. Would either of those work?"
- Offer an annual prepayment lock: "If you'd prefer to keep the current fee for longer, we can hold it for [6 / 12] months if you move to annual billing paid upfront."
- Offer a phased increase: "We can phase it in: $[Step 1 fee] from [Date 1] and $[New fee] from [Date 2]."
- If they push again: "The fee is set, but the scope is open. What would feel right to you?"
- If they decide to leave: "I understand. I'll prepare your file handoff this week, and I'm happy to suggest two firms that may suit the budget you're working with."
Reducing scope protects your margin and still gives the client a way to say yes. Keeping someone at the old fee for the same scope tends to breed resentment on both sides.
Legal and contract checks before you send
This section is general information, not legal advice. Have an attorney review your agreements before you change fees, especially where the client is a consumer or the contract is for a fixed term.
- Read the fee and change clauses. Look for an escalation or fee review clause, a required notice period, any cap on increases, and how the agreement can be amended (for example, "in writing signed by both parties").
- Check the term and renewal date. If fees are fixed for a stated term with no change mechanism, treat a mid-term increase as an amendment the client must agree to, and confirm the position with your attorney.
- Use the contract's notice method. Some agreements specify how notices are delivered and to whom.
- For consumers and subscriptions, check state law. Automatic renewal and consumer protection laws in some states set rules on price change notices and cancellation. Confirm them for every state where you have customers.
- CPA firms: follow your state board rules and firm policies on engagement letters and fees.
- Keep a record of each notice, its delivery date and method, and the client's acceptance.
Final Thoughts
Most of the work in a price increase happens before the letter: checking the contract, choosing the notice period and deciding which clients get flexibility. The letter itself should stay short, with the old fee, the new fee, the date and one reason. Once an escalation clause is written into your engagement letters, the yearly letter becomes a two-line reminder like template 7.
Frequently Asked Questions
How do I write a price increase letter to clients?
State the service, the current price, the new price and the effective date in the first two sentences. Add one sentence explaining why, such as rising costs or expanded scope. Close with the next step, such as an updated agreement to sign, and a contact for questions. Keep it under 200 words and avoid apologetic language.
How much notice should I give before a price increase?
Give 30 to 60 days for most business clients, and 60 to 90 days for long-term retainer clients or increases above about 10 percent. Your contract takes priority: if it sets a notice period, follow it. For consumer subscriptions, check state automatic renewal and consumer protection rules, which can set specific notice requirements.
What is a reasonable price increase percentage?
A reasonable routine increase is close to inflation, and many firms tie it to CPI. The Consumer Price Index rose 3.7 percent in the 12 months to September 2026, according to the Bureau of Labor Statistics. Increases above inflation are easier to accept when the scope has grown. One-time catch-ups for legacy clients can be larger, and stepping them over two renewals reduces the shock.
Should I send a price increase notice by email or tell clients in person?
Email works for most clients because it creates a written record with the exact fee and date. For your largest or longest-standing clients, call or meet first, then send the letter the same day as the formal record. Bulk announcements to many customers can go by email, invoice message or customer portal.
Can I raise prices in the middle of a contract?
Only if the contract allows it or the client agrees. Check for an escalation or fee change clause and follow its notice terms. If the contract fixes fees for a term and has no change clause, propose an amendment for the client to sign, or apply the new fee at renewal. Ask an attorney to confirm your position.