How to write a price increase letter to customers (with a sample)

Sooner or later every brand has to raise its prices. Materials, packaging, freight and wages go up, and absorbing every increase quietly eats the margin that keeps your business going. The increase itself is rarely what upsets a wholesale customer. Surprise is. This guide shows you how to decide the new prices, how much notice to give, what to put in a price increase letter, and how to send the new price list so stores can keep ordering without friction. It includes a sample letter you can adapt and a checklist for the day you send it.

Why a letter matters more than the number

Store buyers deal with price changes from many suppliers. What they need from you is time to plan, a clear explanation and a price list they can trust. A well-handled increase tells a buyer you run a professional business. A badly handled one, such as an invoice that is suddenly higher than the line sheet, makes them question every other number you have sent.

A price increase letter does four jobs:

• It sets a date. The buyer knows exactly which orders get the old price and which get the new one.
• It explains the reason in a sentence or two, so the change does not feel arbitrary.
• It shows the new prices, both wholesale and suggested retail (MSRP), so the store can reprice its shelves.
• It keeps the relationship warm by thanking the buyer and giving them a chance to order before the change.

Step 1: Work out the new prices first

Do the math before you write a word. The letter is much easier once you know exactly what is changing and why.

Start with your new cost per unit. Then choose one of two approaches:

• Pass through the cost increase in dollars. If a product now costs you $0.80 more to make, add $0.80 (or a little more) to the wholesale price. The store sees a small, easy-to-explain change.
• Keep your margin percentage. Divide the new cost by (1 − your target margin). This protects your profit rate, but the increase is larger, so it needs a stronger reason.

Here is a worked example for a candle that used to cost $6.50 to make and now costs $7.30.

The rounded version is usually the better choice. A $30 shelf price is easier for a store than $29.60, and the extra $0.20 restores some of your margin. The increase is $1.00 wholesale, or about 7%. If you need help with the numbers, the wholesale price calculator and the margin calculator show margin and MSRP for any cost, and the COGS calculator helps you confirm your new cost.

Two more decisions to make now:

• Raise everything or only some products? If only some costs went up, raise only those products. Buyers notice when a blanket increase includes items that obviously did not get more expensive.
• One increase or two? One clear increase is usually better than several small ones a few months apart. Each change costs the store time to update tags and its own systems.

Step 2: Decide how much notice to give

Give stores enough time to plan and to place one more order at the current price if they want to. Many small brands give at least 30 days. Sixty days is kinder for stores that order seasonally or plan their buying months ahead, and some larger accounts expect more.

Before you choose, check what you have already agreed:

• Written agreements and terms. If a contract, supplier agreement or your published terms say how prices can change or how much notice you will give, follow it. If you have agreed fixed prices for a period, you may not be able to change them until it ends.
• Orders already placed. It is normal practice to honor the old price on any order confirmed before the effective date, including orders scheduled to ship later.
• Local rules. Rules on price changes differ by country and by sector, and they are often stricter when you sell to consumers than to businesses. If you are unsure what applies to you, get advice before you send the letter.

Expect some stores to order early to beat the increase. That is fine, and it is often why you give notice, but make sure you have the stock and cash to fill a burst of orders.

Step 3: Write the letter

Keep it short. A buyer should understand the change in under a minute. A good price increase letter has these parts, in this order:

1. A clear subject line, such as "Updated wholesale prices from 1 March".
2. The headline: what is changing and from when, in the first two sentences.
3. A brief reason, in plain terms. "Our wax and glass costs have risen" is enough. Do not over-explain or apologize at length.
4. The size of the change: the average increase and the range, or the exact new prices.
5. What stays the same: minimums, terms, lead times, anything the buyer might worry about.
6. What the buyer can do now: order at the current price before the date, or ask you questions.
7. Thanks and your contact details.

Attach or link the new price list. Never make a buyer ask for it.

A sample price increase letter

Adapt this to your own voice and numbers. It is written for a small brand emailing its stockists.

Notice what the letter does not do. It does not blame the buyer, it does not hide the increase in the fourth paragraph, and it does not use vague phrases like "market conditions" without saying what changed.

Step 4: Send the new price list the right way

The letter is only half the job. The other half is making sure every buyer is ordering from the new prices on the right date and not from an old file.

Print the effective date at the top of the price list. An undated PDF is the most common cause of disputes after an increase: a buyer orders from last season's file and expects that price. A shared link avoids this, because it always shows the current version. In CatalogKite, a published price list link updates as soon as you edit the prices, so you can prepare the new list, send the letter, and switch the prices on the effective date. Our guides to creating a wholesale price list and making a price list in Excel cover the layout and the formulas for updating prices in bulk.

Step 5: Handle replies and pushback

Most stores will reply with a short acknowledgment, or not at all. A few will push back. Prepare for that before you send.

• Know your reason in detail. If a buyer asks why, be ready to say which costs changed and roughly by how much. You do not need to share your full cost sheet.
• Decide your limits in advance. Will you delay the increase for a key account by a month? Offer a larger order at the old price? Decide now, so you are not negotiating on the spot.
• Offer something useful instead of a discount. A new product, a display, better case packs or faster shipping can matter more to a store than the old price.
• Accept that some stores may leave. If a store only stocked you because you were the cheapest option, losing it may be better than selling at a loss.

Common mistakes to avoid

• Raising prices on the invoice. Never let a buyer discover an increase when the bill arrives.
• Too little notice, especially for stores that have already planned their next order.
• Forgetting the MSRP. If the wholesale price rises but the suggested retail price does not, the store's margin shrinks and they notice.
• Leaving old price lists in circulation. Replace every file and link buyers use, including the price list on your wholesale page and any marketplace listings.
• Undercutting stores. If you raise wholesale prices, raise your own retail prices too, so you do not sell cheaper online than your stockists can.

Price increase checklist

• New cost per unit confirmed for each product
• New wholesale prices and MSRPs calculated and rounded
• Contracts and published terms checked for notice and fixed-price periods
• Effective date chosen, with at least 30 days' notice
• Policy decided for orders placed before the effective date
• Letter written, with the date and reason in the first lines
• New price list with an effective date ready to attach or link
• Line sheet, order form and website prices updated on the date
• Responses to likely questions prepared

Handled this way, a price increase becomes a routine update rather than a difficult conversation. For more on setting terms buyers trust, see wholesale terms explained.