# Price Increase Letter to Customers Template

> Source: https://netray.co/tools/customer-price-increase-notification-letter-template
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A clear customer-facing price increase notice with effective date, scope, reason, treatment of open orders and a contact for questions.

## Category

industry-templates

## Audience

- Customer service
- Sales manager
- Pricing analyst

## Tool

**Kind:** template

**Output:** document

**Fields:**

#### Your company

**Key:** company

**Type:** text

**Default:** Acme Precision Ltd

#### Letter date

**Key:** date

**Type:** date

**Default:** 2026-10-20

#### Customer

**Key:** customer

**Type:** text

**Default:** Northfield Controls Inc.

#### Attention

**Key:** attn

**Type:** text

**Default:** Dana Whitfield, Purchasing

#### Effective date

**Key:** effective

**Type:** date

**Default:** 2027-01-01

#### Products affected

**Key:** scope

**Type:** text

**Default:** All machined aluminum components (product family MA)

#### Increase

**Key:** pct

**Type:** text

**Default:** 4.5 percent

#### Reason

**Key:** reason

**Type:** select

**Options:**

- Raw material costs
- Labor and overhead costs
- Energy and freight costs
- Supplier cost increases
- Annual price review

**Default:** Raw material costs

#### Explanation

**Key:** detail

**Type:** textarea

**Default:** Aluminum bar stock and anodizing charges have risen since our last price update in January 2025. We have absorbed these increases as long as we reasonably could and have reduced cost internally where possible.

#### Open order treatment

**Key:** open_orders

**Type:** select

**Options:**

- Open orders keep current price
- Orders shipping after the effective date use new price
- Orders placed before a cut-off date keep current price

**Default:** Orders placed before a cut-off date keep current price

#### Order cut-off date

**Key:** cutoff

**Type:** date

**Default:** 2026-12-15

#### Contact

**Key:** contact

**Type:** text

**Default:** Marcus Lee, Sales Manager, sales@acmeprecision.example

**Blocks:**

#### Notice of Price Adjustment

**Body:** {{company}}
{{date}}

{{customer}}
Attention: {{attn}}

#### Summary

**Body:** Effective {{effective}}, prices for {{scope}} will increase by {{pct}}. The primary driver is: {{reason}}.

#### Background

**Body:** {{detail}}

#### Open Orders and Timing

**Body:** Open order treatment: {{open_orders}}.
Cut-off date, where applicable: {{cutoff}}.

A revised price list or updated quotations are available on request. Existing quotations remain valid until their stated expiry date.

#### Questions

**Body:** We value the relationship and want to talk through any concern before the effective date. Please contact {{contact}}.

#### Issued by

**Signatures:**

- Sales manager
- General manager

**Notes:** Starting point only, not legal advice. Check your contract, price-protection clauses and any required notice period before sending. Many supply agreements, and some jurisdictions, require a minimum written notice for price changes. Send customers with long-term agreements individual letters rather than a generic one.

## Content

**Intro:** A price increase letter works when it is specific: how much, on what, from when, and what happens to orders already in the system. This template covers those points in a short, factual notice.

**Sections:**

#### How to use the letter

**Body:** Choose the effective date, the product scope and the percentage, then pick the reason and the treatment of open orders. Add two or three sentences of context and a named contact. Export to Word to personalize for key accounts, or to PDF for bulk email. Send the notice well ahead of the effective date; many contracts require 30 to 90 days, and a longer lead time gives customers room to place orders at the old price.

**Bullets:**

- Give the effective date and the order cut-off clearly
- State which products or families are affected
- Explain the driver without blaming the customer or suppliers
- Name a person customers can call

#### Handling open orders and quotes

**Body:** The most common point of conflict is what happens to orders already placed. Decide the rule before sending: either orders placed before a cut-off keep the old price, or shipments after the effective date use the new one. Make sure the ERP price file, standing quotes and blanket orders follow that rule, otherwise order entry will apply the wrong price and you will be issuing credit memos.

#### Before you send

**Body:** Check each customer's contract for price-protection, index-linked formulas or notice periods. Review the margin effect with a break-even volume view, so you know how much volume loss the increase can survive. Align sales and customer service on the same answers to the three likely questions: why, how much, and does it affect my open order.

#### Common mistakes

**Body:** Letters fail when they are vague about scope, silent on open orders, or sent too close to the effective date. Another mistake is changing prices in the ERP before customers are notified, so invoices arrive with new prices and no warning.

**Cta:** If price changes are hard to roll out across price lists, contracts and quotes, Netray can help identify affected customers and open lines from your ERP data, read-only.

**Faq:**

#### How much notice should a price increase letter give?

**Answer:** Check your contracts first, since many require 30 to 90 days. Without a contract requirement, 30 to 60 days is common practice. More notice gives customers time to order ahead and reduces friction.

#### Should I explain the reason for the increase?

**Answer:** Yes, briefly and factually. Customers accept increases tied to a clear cost driver such as raw material or labor more readily than unexplained ones. Avoid long justifications or comparisons to competitors.

#### What should happen to open orders?

**Answer:** Decide and state a rule. Common choices are that orders placed before a cut-off keep the old price, or that all shipments after the effective date use the new price. Whatever you choose, configure the ERP to match.

#### Can I send the same letter to every customer?

**Answer:** Use a standard letter for customers on list pricing, but write individually for those with long-term agreements, index clauses or price holds. Review legal terms for those accounts before anything goes out.

## Search terms

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