How to Announce a Price Increase or Decrease: Examples, Steps and Templates
How to announce a price increase to customers, with real examples from QuickBooks and Spotify, a six-step process, and email templates for price changes.
A price increase announcement is a message that tells customers your product will cost more, when the new price takes effect, and why. The best way to announce a price increase is to tell customers early, explain the reason, give existing customers a way to keep their current rate, and send the notice through the channel they actually read.
This guide shows real price increase announcement examples from QuickBooks Online and Spotify, a six-step process, and copy-and-paste templates for both a price increase and a price decrease.
If you are about to raise prices on your SaaS product, you may worry that customers will leave the moment the change lands.
You may even think back to your college economics class. If the price goes up, what happens to the supply and demand curves?
That is not the outcome your business wants. But here is the interesting part.
Your economics class ran on theory and on "ceteris paribus," the assumption that all other things are equal (perfect substitutes and so on). Real life does not happen in a vacuum, and all other things are never equal.
If your product is sticky and adds real value, and you raise prices with a solid, well-thought-out price increase announcement strategy, you will be just fine.
Read on for the examples, the step-by-step process, and the templates.
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Price Increase Announcement Examples
Why reinvent the wheel? It is the same point we made about release notes templates: many teams start from scratch when they could copy the structure that trusted companies already use.
Here are two price increase announcement examples worth studying for inspiration.
QuickBooks Online price increase email
As the screenshot below shows, QuickBooks thought this through and made the price change announcement clear.
No action is needed on the client's end. That removes the risk of being ghosted, which happens when you ask customers to approve a price increase themselves.
Spotify price increase email
Spotify is a well-known brand with strong buy-in from its users. So its price increase email to us was short and sweet: no reasoning for the increase, no apology, just the new price and nothing else.
How do you announce a price increase? Step by step
A price increase announcement is the action a company or individual takes to tell customers that the cost of their goods will go up. In most cases, the company does this to stay competitive with other companies and products in the market, or to cover rising costs.
Whatever the reason, it affects your customers. Here are six steps to announce a price change to your audience.
1. Communicate openly and early
When you adjust prices or introduce updates, be transparent and direct with your customers. Telling them about the change before it happens builds trust and limits any negative reaction.
2. Explain the reason behind the change
Tell customers what is driving the price adjustment. Often the change comes from new product features that improve their experience. Spell out the added value clearly, the same way you would in a new feature announcement. The main page of your website is a prominent place to carry this news.
3. Give existing customers a way to keep current rates
Offer existing customers a window to lock in the current pricing. For example, extend a limited-time offer to keep existing rates when they switch to an annual payment plan. Both your business and your customers benefit, and it shows you care about their satisfaction.
4. Listen to customer feedback
Gather feedback proactively and answer questions as quickly as you can. This strengthens your bond with customers and shows you take their needs seriously. Even when the news is unwelcome, a fast response shows you understand their concerns. For deeper insights into your customers, consider using company enrichment services to enhance the data you collect during these interactions.
5. Pick the right channel for the announcement
Send the announcement through the channel that reaches each customer best. The goal is that the large majority of customers see the message and nobody is surprised by the price change.
Most companies do this by email. It also works through in-app notifications, banners, and the same feed you use for product updates.
AnnounceKit has specific features like a release notes tool, but it covers all kinds of announcements: widgets, emails, banners, and more.
6. Match the tone to each customer segment
Different customer personas respond to different wording, so adjust your message for each segment. User segmentation helps you find the language that lands best with each group, and our guide on how to segment a product shows how to set it up.
There are other ways to make announcements interesting.
Price increase announcement template
Hi there,
As [date] approaches, we have reached a point where a pricing update is necessary to maintain our long-term investment in making [company name] the most powerful, user-friendly, and intuitive [descriptive keyword for your solution] in the world. We are adjusting our pricing starting [price increase date] to more accurately reflect the value you get and to make room for some great new tools and features coming your way. Here are the new tiers:
- [Plan 1]: New price - Old price
- [Plan 2]:
- [Plan 3]:
- [Plan 4]:
This change will help us develop better features that are easy to use while still keeping our prices competitive. In fact, we have added more than [number of new features] new features and integrations under the hood over the past two years without raising our prices. We are known for our excellent customer support, and that will never change, for both free and paying customers. Our Premium Support is available to everyone via the live chat on our website.
Upcoming features:
[New Feature 1]: Explain your feature here
[New Feature 2]:
[New Feature 3]:
[New Feature 4]:
Have any questions or concerns? Just reply to this email or reach out via the live chat on our website.
Thanks always,
How do you announce a price drop to clients?
Many business owners ask themselves, "How do you announce a price drop to clients?" Think about how your customers will react. The price drop announcement should make clear what is happening and why. Here are our four tips for managing it.
1. Explain what made the price drop possible
This is the most critical part of a price drop announcement. Some customers will be suspicious of a lower price, and they will not feel good about the change unless you explain it clearly.
2. Assure customers that quality stays the same
Concern about quality is understandable. Before customers start to worry, state plainly that your service quality will not change. Concrete examples or proof make this more convincing.
3. Show your goodwill
Demonstrate that you understand your customers' concerns. In a nutshell, thank customers for being customers and use your empathy skills. In the long term, it helps you build stronger relationships.
4. Do not use marketing jargon
Marketing jargon around a price drop is irritating in most cases. It depends on your business type and the reason for the drop, but with existing customers it is safest to sound natural and skip the jargon.
Price decrease announcement template
Dear [Customer]:
We are grateful for the pleasure of serving you and hope we have met your expectations.
At [Your Company], we aim to improve customer value and satisfaction. We are working hard to find new ways to increase the satisfaction of our community, and we regularly review our expenses and price lists to provide our value at the most affordable price possible.
We are happy to share good news: we have decided to reduce our price from [Old price] to [New Price].
The price change takes effect on [Date].
Because customer happiness is our priority, we believe that providing maximum value at a fair price will increase your satisfaction.
Have any questions or concerns? Just reply to this email or reach out via the live chat on our website.
Thank you
Collect feedback after the price change
Collecting feedback from your customers is important and sometimes challenging. Analyzing customer feedback helps you understand your customers better and speeds up your growth.
For practical ways to gather it, read our guide to customer feedback tools and management.
Frequently asked questions
What is a price increase announcement?
A price increase announcement is the action a company takes to tell customers that the cost of its goods or services is going up. Companies usually do this to stay competitive in the market or to cover rising costs.
How do you announce a price increase to customers?
Communicate openly before the change, explain the reason behind it, and give existing customers a way to keep their current rate, such as switching to an annual plan. Then send the notice through the channel that reaches each customer best and adjust the tone for each customer segment.
How do you tell customers about a price increase by email?
State the effective date, list the new price for each plan next to the old one, and explain what the extra revenue funds, such as upcoming features. Close by inviting customers to reply or use live chat with any questions.
What should a price change notice include?
It should include the old and new prices, the date the change takes effect, the reason for the change, and a way for customers to ask questions. For a price drop, also explain what made the lower price possible and confirm that quality stays the same.
How do you announce a price drop to clients?
Explain what made the price drop possible, assure customers that quality will stay the same, thank them for their loyalty, and avoid marketing jargon. A clear, natural message prevents customers from becoming suspicious of the lower price.
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