RATE INCREASE LETTER ==================== Disclaimer — not legal advice. This template is provided free of charge, as is and with no warranty of any kind, and using it creates no attorney-client relationship. It is jurisdiction-neutral: you are responsible for adapting it, for your own legal and tax compliance, and for having a qualified professional in your jurisdiction review it before you rely on it. Full terms: https://trycolo.co/terms-of-use Send by email (or as a PDF attachment) at least [30–90] days before the effective date. Replace every [BRACKETED PLACEHOLDER] and delete optional sections you do not use. ------------------------------------------------------------ Subject: Updated rates from [EFFECTIVE DATE] Date: [DATE] Dear [CLIENT FIRST NAME], Thank you for [NUMBER] [MONTHS / YEARS] of working together on [PROJECT, ACCOUNT, OR TYPE OF WORK]. I'm writing to let you know that my rates will change from [EFFECTIVE DATE]. New rates --------- Service | Current rate | New rate from [EFFECTIVE DATE] --------------------------------------------------- | ------------------------------- | ------------------------------- [SERVICE 1 — e.g. hourly design work] | [CURRENCY] [OLD RATE] per hour | [CURRENCY] [NEW RATE] per hour [SERVICE 2 — e.g. monthly retainer, [NUMBER] hours] | [CURRENCY] [OLD RATE] per month | [CURRENCY] [NEW RATE] per month [SERVICE 3 — e.g. day rate] | [CURRENCY] [OLD RATE] per day | [CURRENCY] [NEW RATE] per day Why the change -------------- [CHOOSE OR ADAPT ONE OR TWO SENTENCES:] - My rates have been unchanged since [YEAR], and over that time my costs and the range of work I take on for clients have both grown. - I've expanded my services to include [NEW SKILL OR CAPABILITY], and my pricing now reflects that. - Demand for my time has grown, and I'm adjusting my rates so I can continue to give each client the attention they need. What stays the same ------------------- - The same level of service and turnaround: [e.g. replies within one business day]. - [The same team / I will continue to work on your account personally.] - Work requested and approved before [EFFECTIVE DATE] will be billed at the current rate, including [NAME ANY PROJECT OR PHASE IN PROGRESS]. Optional: keep the current rate for a commitment (delete if not offering) ------------------------------------------------------------------------- If you'd like price certainty, I can keep your current rate of [CURRENCY] [OLD RATE] until [LOCK-IN END DATE] if you [PREPAY [NUMBER] MONTHS / SIGN A [NUMBER]-MONTH RETAINER] by [DECISION DATE]. Just reply to this email and I'll send the paperwork. Optional: adjusting scope to fit your budget (delete if not offering) --------------------------------------------------------------------- If your budget for [SERVICE] is fixed, we can adjust the scope to fit it, for example [REDUCING THE RETAINER FROM [X] TO [Y] HOURS / MOVING [TASK] TO A QUARTERLY SCHEDULE]. I'm happy to talk through options. Next steps ---------- - Invoices issued from [EFFECTIVE DATE] will show the new rates. - [IF A RETAINER OR CONTRACT IS IN PLACE:] Under clause [CLAUSE NUMBER] of our agreement dated [CONTRACT DATE], this letter is [NUMBER] days' written notice of the change. I'll send an updated agreement for signature by [DATE]. - [IF THE CLIENT USES PURCHASE ORDERS:] If you need a new purchase order, please let me know who to send the details to. If you have any questions, reply to this email or book a call at a time that suits you: [YOUR CONTACT DETAILS OR PHONE]. I value working with you and look forward to continuing. Best regards, [YOUR NAME] [YOUR BUSINESS NAME] [YOUR EMAIL] | [YOUR PHONE] ------------------------------------------------------------ Short version (for small accounts or informal relationships) ------------------------------------------------------------ Hi [CLIENT FIRST NAME], A quick note to let you know that from [EFFECTIVE DATE] my rate for [SERVICE] will change from [CURRENCY] [OLD RATE] to [CURRENCY] [NEW RATE] [PER HOUR / PER MONTH]. Anything we've already agreed before then stays at the current rate. Thanks for your continued work with me. Happy to chat if you have questions. [YOUR NAME] ------------------------------------------------------------ How to use this template 1. Check your contract for fixed-fee terms or a required notice period before choosing the effective date. 2. Fill in the rate table with exact current and new rates. 3. Decide whether to offer a lock-in or a scope option, and delete the sections you do not use. 4. Send it at least 30 days ahead, and update your proposal and contract templates on the effective date. 5. Keep the reason short and consistent across clients. Template provided by Colo (trycolo.co). Not legal advice — review with a qualified professional in your jurisdiction.