Increasing Prices/Rates

Business Letter

Dear …

Over the last few years we have seen various costs increasing in our industry. __ (Manufacturing/Building/Labor/etc.)__ costs have risen __(by __% /substantially)__ in the last year. With these rising costs, __(name of company)__ has had to make many adjustments over the years to keep the costs to our customers competitive. At this time, however, we have found that in order to __(“maintain our standard of __service/products__” or “continue offering this/these __type product(s)/service(s)__”), we have no alternative but to increase our__(price(s)/rates(s)__.

Effective __(date)__, the __(price/rate)__of __(product(s)/service type)__ will be __($$$)__. Based on our competitors’ pricing and the __(level/quality)__ of __(service/products)__ we offer, we believe that __(this/these)__ new __(rate(s)/price(s)__ __(is/are)__ still fair and competitively priced. Offering __(the best service/quality product(s)__, while maintaining competitive pricing, has always been our primary focus to our customers.

Over the last __(#)__ years we have managed to __(avoid increasing our rates/keep the price of __(this/these)__ __(type product(s)/service(s)__ at $$$)__. We are able to do this by closely monitoring our expenses, thereby keeping our __(prices/rates)__ down to our customers. As always, we will continue to provide you with quality __(service/products)__, while keeping our __(rates/prices)__ competitive. We thank you for understanding the necessity of this __(price/rate)__ increase and look forward to your continued business.

Sincerely,