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Service pricing

How to tell a customer your prices are changing

Give the customer the new amount, the effective date and the work it applies to. A short, specific notice is easier to act on than a long explanation with no clear price.

Pocket Invoice Editorial Team · Published

Include five things: the affected service, old and new prices, the date the change starts, the treatment of existing bookings or agreements, and a contact or next step. Explain the actual reason briefly; do not invent a cost increase to justify the decision.

Decide which work will change first

Separate new enquiries, accepted quotes and recurring agreements. Review the terms already agreed with each customer before changing a rate or sending a notice. A notice does not by itself change an agreed contract.

Calculate the proposed rate from the service's current costs using the service price calculator. Check the required notice or approval under the relevant agreement and local rules. There is no single notice period that fits every service and jurisdiction.

If a monthly total changes because you added visits or tasks, show those changes separately. Customers should be able to distinguish a rate increase from a larger amount of work.

A customer notice you can adapt

Replace every bracketed detail and make the sentence about existing work match your agreement.

Subject: [Service] price update from [date] Hello [customer name], Thank you for choosing [business name] for [service]. From [date], our price for [specific scope and billing unit] will change from [old amount and currency] to [new amount and currency]. We are making this change because [brief, accurate reason]. The service will include [agreed tasks]. [Explain what happens to existing bookings or accepted quotes.] Please [confirm the revised arrangement / contact us to discuss the options] by [date, if needed]. You can reach me at [contact details]. Thank you, [name and business]

Show the difference on a recurring service

This hypothetical cleaning example keeps the scope unchanged: one maintenance visit each week, billed per completed visit.

ItemExample
Current price per visit$80
Proposed price per visit$88
Increase$8 per visit; $8 ÷ $80 × 100 = 10%
Four completed visitsOld total $320; new total $352, before any separately applicable tax

Useful wording is: “From November 1, each weekly maintenance visit will cost $88 instead of $80. The agreed task list stays the same. Four completed visits would total $352.” Do not describe every month as four visits if the agreement bills by actual attendance.

If the client needs a lower total, discuss a smaller task list or a different frequency. Confirm the revised scope and price together so neither side assumes the original service remains unchanged.

Respond when a supplier raises prices

Ask for the facts you need to revise purchasing and customer estimates: affected products, effective dates, delivery charges, volume terms and the handling of existing orders.

Subject: Clarification of revised prices — [supplier / account] Hello [name], Thank you for sending the revised price list. Please confirm the new unit prices for [products], the effective date and whether purchase order [number] remains at the previously agreed prices. Please also confirm delivery charges, any changes to minimum quantities and the validity period of a written quotation for [planned order]. We will review these details before placing the next order. Regards, [name and business]

A supplier's percentage increase does not automatically become the same percentage on your customer price. Calculate its effect on the whole job, including labor and other costs.

Update future quotes and retain the earlier version

  1. Keep the notice and the customer's confirmation with the relevant records.
  2. Update applicable future item rates and quotations. Preserve the accepted document for existing work.
  3. On the next invoice, use the agreed rate and service dates. Show any approved scope change as a separate item.
  4. Compare later job costs with the revised price, using the expense tracker if you manage costs in a spreadsheet.

Common questions

Should I state the percentage or the amount?

Show the new amount and billing unit first. Add the percentage when helpful, especially if the customer is comparing several rates. A percentage alone does not tell them the next bill.

Can I apply the new rate to an accepted quote?

Check the quote and agreement. If the agreed scope or price needs to change, seek the required approval and record it before applying a different rate.