Here are some reasons why a client might appreciate receiving a rate increase letter: It is important for a business to have a good relationship with its clients, and using rate increase letters helps maintain such a relationship. Related: 18 Common Business Expenses Why do businesses use rate increase letters? In the rate increase letter, you may need to justify the rate revisions to the clients, so try to gather specific data as you prepare to write. The desire to align prices with those of competitorsĭetermine which reasons apply to your company's decision to increase prices. The need to correct previously undervalued goods or services The wish to minimize workload by focusing resources on select clients Improvement in the quality of goods or services Rising overhead costs, such as rent, utilities, transport and wages Here are a few reasons that businesses may want to raise their rates:
Related: What Is a Pricing Strategy? Reasons for increasing rates You can send this letter by post, email or even as a public notice. The letter includes the amount the prices will increase and when the changes will take effect.
Often, businesses raise their prices because they are trying to compensate for increased costs of their own, and they want to explain this to their clients. Related: How To Develop and Maintain Positive Client Relationships What is a rate increase letter?Ī rate increase letter is an announcement that a business makes about a decision to raise prices on goods or services. In this article, we discuss what a rate increase letter is, why businesses may want to increase their prices, how rate increase letters help foster business relationships and tips for writing a rate increase letter. If you are a manager or supervisor and your company is changing its prices, it's important to learn how to notify your clients of the change. In a client-facing role, you may need to write rate increase letters to provide information about the rising prices and promote goodwill and an ongoing relationship. A rate increase letter, also known as a price increase letter, is a formal announcement of price changes from a business to its clients.
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