# 01 Guide: how to announce a price increase Status: November 2026. A practical aid, not legal advice. The legal notes at the end are pointers only; rules differ by country, state and industry, so please check your own situation with the official sources or a professional. ## How to work with the kit Every template contains placeholders in [square brackets]. Replace each one before you send anything and delete the brackets. The placeholders have the same names in every part: | Placeholder | Meaning | |---|---| | [Business name] | The name of your business or practice | | [Greeting and name] | e.g. «Dear Ms Smith», or «Hi Anna» for regulars you know well | | [Service] | What is getting more expensive, e.g. haircut, lunch menu, hourly rate, session | | [old price] / [new price] | Including the currency symbol, as the final price the customer pays (with tax where that applies to you) | | [Effective date] | The first day the new price applies | | [Date sent] | The day you send the letter or e-mail | | [One-sentence reason] | The true main reason for the increase (see section 4) | | [Sender name] | Who signs: owner, practice manager, director | | [Phone] / [E-mail] | Your contact details for questions | | [Town or city] | Your location | | [Street and number], [Postcode and town] | Your address, or the customer's address (letter only) | | [Year/month] | Since when you have known the customer | | [Website] / [Link] | Your website or the link to your price list | | [Rule to insert] | Your rule for vouchers, loyalty cards, bookings or quotes | | [Customer name] | The name of the customer, company or guest (letter only) | | [Date quote ends] | The last day an already issued quote stays valid at the quoted price | | [Alternative] | The service or provider you recommend instead (when you drop a service) | | [date] | A date you name for a concession, e.g. the last day a regular keeps the old price | ## 1. When is a good time? - Natural dates are the new year, the start of a season or the start of a new financial year. Customers expect changes at those points. - Avoid the moment right after a mistake, a complaint or a closure. Rebuild trust first, then adjust prices. - One planned step beats several small increases within a few months. Frequent small changes look unsure; one clear change with notice looks considered. - Plan inside the business first: who is told when? Are price lists, till, website, quote templates and online booking ready? ## 2. How much to raise? Start with your own numbers, not with what you think customers will «put up with». 1. Write down what has become more expensive for you (rent, materials, wages, energy, software, insurance). Only items you can back up. 2. Work out what share of your price this makes up. 3. Decide whether to raise single prices (a haircut, a dish, an hour) or the price list as a whole. 4. Round to a price that is easy to say and easy to charge (whole numbers or multiples of five, for example). Worked example (invented, only to show the method): a price goes from 80 to 85. The difference is 5. 5 divided by 80 is 0.0625, so 6.25 percent. You only need the percentage if you want to mention one in your message. Customers usually understand a concrete amount better than a percentage. Note: we deliberately do not quote «typical» percentages. What is bearable for you depends on your trade, your area, your regulars and your competition. Look at the price lists of businesses near you. ## 3. How early to announce? For a simple retail or service business, many places have no fixed legal notice period for a change in single prices, but this depends on where you are. As a practical rule of thumb (our suggestion, not a legal requirement): - Single prices in a salon, café or practice: at least four weeks ahead. More for regulars with a membership, season pass or standing order. - Contracts with a term, maintenance plans, subscriptions, retainers: follow the notice and adjustment terms in the contract. If they apply, announce the change at least that early. - Quotes and fixed-price agreements: a quote you have accepted stays valid until it expires or the contract allows a change. - Appointments already booked: customers who booked before the announcement normally pay the price that applied when they booked. Say so explicitly in your message. One or two reminders are enough: the announcement itself and a note shortly before the date (notice, e-mail footer, a remark at the till). ## 4. Give an honest reason - Name the real reason in one sentence. Examples: higher costs for supplies and materials, higher wages, higher rent, investment in training or equipment. - Do not write anything that is not true. If the main reason is your own pay or income, you may say so. Honest sounds better than a pretext. - No blaming («because of inflation we have no choice» with nothing behind it). Better: «Our costs for [reason] have risen since [Year/month].» - Thank customers for their loyalty and say what they get in return (quality, time, training, new equipment), but only what is really true. - Keep it short. A letter that apologises three times opens the discussion. ## 5. Common mistakes - Announcing too late or too quietly: the price first shows up on the bill or at the till. - Vague wording: «prices are being adjusted» with no amount and no date. - Contradictions: website, notice and till show different prices. - Apologising and justifying until the letter is longer than it needs to be. - Forgetting old promotions or vouchers: what still applies, what expires? - Sending the e-mail but forgetting the notice (or the other way round). - Pasting personal data into public AI tools (names, addresses, health details). - Not briefing your staff: whoever stands at the till should know the letter and have practised the answers in part 06. ## 6. Step-by-step checklist 1. Collect your costs and set the new price. 2. Set the effective date and allow for the notice period. 3. Prepare price list, website, booking system, till and quote template. 4. Fill in the message from the matching industry part (02 to 05). 5. Speak to regular customers personally where it makes sense (thank-you, parts 02 to 05). 6. Brief your staff and practise with part 06. 7. Send, put up the notice, add a line to your website. 8. After the date: collect the questions you were asked and improve the templates if needed. ## 7. Legal notes (not legal advice, please check) - **Price display:** Many countries have rules on how prices must be shown to consumers (for example whether the price must include tax, and how a price list must be displayed). Check the rules for your country and trade, usually published by the consumer protection or trading standards authority. - **Existing contracts:** A price change does not apply just because you announce it. For contracts with a fixed term, a subscription or a flat fee you need a contractual basis (for example a price adjustment clause) or the customer's agreement. In the EU and the UK, consumer contract terms must also be fair and transparent. Check your terms and conditions. - **Regulated prices:** Some prices are set or capped by someone else, for example by health insurers, public fee schedules, rent rules or utility regulators. If that applies to you, you usually cannot raise those prices yourself. Say so plainly if a change comes from a tariff. - **Sales tax / VAT:** If you charge sales tax or VAT, check whether your prices must be shown including tax, and which rate applies to which service. Ask your accountant if you are unsure. - **Data:** Do not paste customer names, addresses or health details into public AI tools. Data protection laws such as the GDPR (EU/UK) or similar national laws may apply. When in doubt, ask your trade association, accountant or a lawyer.