Price increase letter, Stonecourt Strength to A. Tewari
Price increase letter template with the old and new price side by side
A price increase letter fails when the customer has to work out what it means for them. This one page example puts every membership type in one table with the old price, the new price and the difference, then names the reader's own membership and tells them it is $4 a fortnight, or $104 over a year.
The document, page by page
Every page as it renders and as it prints, with nothing summarised. Read the wording before you reuse it.
Section by section
What each section is for, so you can keep the ones you need and drop the rest.
- Letterhead
- The gym's masthead with its address, email and phone.
- Date and addressee
- 1 December 2026, the member by name and membership number.
- Subject
- The membership price change and the date it takes effect.
- The change
- First rise in three years, the only one planned for 2027, and 60 days notice.
- Old and new prices
- Four membership types with the current price, the new price and the difference.
- What it means for you
- The reader's own plan, $104 over a year, and the three things the increase pays for.
- What is not changing
- A callout with hours, access, the free class, pauses and the 14 day cancellation notice.
- Two alternatives
- Off peak at $34.00 or yearly at $1,060, with 31 January as the date to act by.
- Sign off
- The owner by name, with an offer to talk it through on the floor.
How to adapt this document
For a business to business rate rise, replace the membership table with a service and rate table and add the contract clause number that allows the change, because a commercial customer will look for it before reading anything else. For a rise that only affects new customers, say so in the first sentence and keep the letter to half a page: existing customers who read a price letter that does not apply to them still worry, and a short reassurance is cheaper than a support queue. For a rise driven by a supplier cost you cannot absorb, show the input rather than the output, such as the wholesale rate per unit before and after, and offer a fixed price for customers who commit to a longer term. In every version keep a line listing what is not changing.
What makes this document work
Four rows, and the reader's own row is named
The table shows full access moving from $42.00 to $46.00, off peak from $31.00 to $34.00, the yearly rate from $980 to $1,060 and concession from $26.00 to $28.00. The paragraph under it says yours is full access, fortnightly, so your payment moves to $46.00, which is $104 more over a year.
The reason is three specific things, not inflation
The lifting platforms and heavier dumbbells installed in October, a second evening coach on the floor from 4pm to 8pm, and two years of rent and power rises the gym absorbed. Naming what the money bought is the difference between a price rise and a value story the member can check by looking around.
What is not changing gets its own callout
Opening hours, the 24 hour access fob, the free weekly class, the two 7 day pauses a year and the 14 day cancellation notice, with no joining fee and no contract to re-sign. Most of the anxiety a price letter creates is about what else is being quietly changed at the same time.
Questions people ask
How much notice should a price increase letter give?
Enough for the customer to act, and whatever the contract requires. This letter gives 60 days, naming 1 February as the first payment at the new rate and 31 January as the date to switch or cancel by. For an ongoing consumer contract, a term that lets a business raise the price without an exit can itself be challenged as unfair.
Do I have to give a reason for a price increase?
You do not have to, and you should. A letter that says prices are rising invites the reader to assume the worst. This one names three things: the equipment installed in October, a second evening coach, and two years of absorbed rent and power. A reason that can be checked is worth more than a reason that sounds official.
Should a price increase letter offer an alternative?
Yes, because the alternative is what stops the cancellation. This letter offers off peak at $34.00 with its hours spelled out, or a yearly payment at $1,060 that locks the rate until February 2028, and makes either change one email. Giving a customer a cheaper way to stay is cheaper than replacing them.
Can a business raise prices during a contract?
Only if the contract allows it and the term itself is fair. A standard form contract with a consumer or a small business can be challenged where a term creates a significant imbalance and is not reasonably necessary, and a price variation clause with no right to exit is the standard example. Notice plus a free exit is the safe pattern.
Should the increase be shown as a percentage or a dollar amount?
Dollars, and both if you like. This letter shows $42.00 to $46.00 with a $4.00 difference column, then converts it to $104 over a year for the reader's own plan. A percentage sounds small on a low base and large on a high one, and a customer who has to do the arithmetic assumes you hid something.
How do you write a price increase letter without losing customers?
Give real notice, name the reason, show what is not changing, and offer a way to stay for less. This letter does all four in one page and ends with an invitation to talk rather than a link to a cancellation form. The letters that lose customers are the ones that arrive a week before the debit.
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