Chemicals, parts, fuel and wages go up every year, and many service firms keep the same AMC rate for three years because writing the letter feels hard. This price increase letter to customers is short, polite and sent at the right time: with the renewal. There is a Word version to download.
Price increase letter to customers: sample
Subject: Revised service rates from [date]
Dear [Customer name], thank you for choosing [Company] for [service] at [site]. From [date], our rate for [service / AMC] will be Rs [new] plus GST, from Rs [old]. This reflects higher costs of [parts, chemicals, fuel, wages] over the past [period].
What does not change: [number] scheduled visits a year, breakdown response within [time], and the same team. If you renew your AMC before [date], we will hold the current rate for one more year. Regards, [Name], [Company], [Phone]
WhatsApp version
Hello [Name], from [date] our [service] rate will be Rs [new] + GST (now Rs [old]) due to higher costs. Renew before [date] to keep the current rate for another year. Letter attached. Thank you!
When to send it
- With the AMC renewal notice, 30 to 45 days before expiry.
- For one-time services, at least 30 days before the new rate list applies.
- Not in the middle of a contract, unless the contract allows it.
Make the increase easy to accept
- Show the old and new amounts. Customers distrust a new number without the old one.
- Remind them of the year's work: visits done, breakdowns attended.
- Offer an early-renewal rate or a multi-year price.
- Keep increases regular and modest, not one large jump after years.
What not to write
- Long apologies or market commentary.
- Increases "with immediate effect".
- Different rates for similar customers without a reason you can explain.
Do it for every renewal at once
ServicePilot lists AMC contracts due for renewal, so you can send the revised-rate letter to every customer renewing next month. Pair it with the AMC renewal letter format.
