Increasing prices can feel tricky for many firm owners because it’s hard to say how clients will react.
However, a well-written price increase letter helps smooth out the process.
In this post, I’ll share a free price increase template, writing tips to level up your letter, and how to determine the best time to update your pricing.
Let’s get into it.
Table of Contents
- Accounting Price Increase Letter (Free Template)
- Writing Tips for Your Price Increase Letter
- When Should You Increase Your Prices?
Accounting Price Increase Letter (Free Template)
Subject: Upcoming Price Changes
Dear [Client Name],
I hope you are well.
I wanted to make you aware of some upcoming price changes we are making at our firm.
Over time, we’ve made key improvements to increase the quality and value of our services, including:
[List improvements you’ve made and explain how they have positively impacted your clients.:
- Bringing on a new Tax Manager to help improve the quality of tax work along with tax optimization strategies
- Implementing a new project management app to ensure deadlines are being better tracked
- Hired a 3rd party security firm to monitor against data breaches to protect your sensitive information
Etc…]
We’re adjusting our pricing to better reflect the value of these services and, more importantly, continue delivering high-quality services to you.
Starting [Date], the pricing for [Client’s Selected Package] will change to [New Rate]. I’m happy to answer any questions and discuss how we can best support your business.
As always, we appreciate your trust and support and look forward to continuing to serve you.
Best regards,
[Your Name]
[Your Firm’s Name]
Writing Tips for Your Price Increase Letter
Tip #1: Focus on the Value You Provide
Clients care about one thing: what’s in it for them.
Whether it’s saving money, avoiding tax headaches, or having a stress-free experience.
Besides, let’s face it — no one likes paying more for the same service.
That’s why enhancing the value of the services they’re already receiving is a great way to justify a price increase.
Some time ago, I shared on LinkedIn that it’s important to highlight the improvements you’ve made in your firm:
I know this advice works. Why?
Because, as you’ll see below, one of my Future Firm Accelerate members found success with this approach:
In that same post of mine, I also talked a bit about what the best approach is if you haven’t made any changes or improvements.
Tip #2: Stick to Simple Language
I came across a story about P. Terry’s, a popular burger stand in Texas, where the CEO wrote a price increase letter that I found refreshing.
Instead of listing out the rising expenses of his business, he plainly stated that a small price increase was necessary to maintain the same quality food customers expected.
Here’s the message:
Source: MySanAntonio.com
No fluff!
Your clients don’t need a long explanation filled with accounting jargon that they have little interest in.
Here’s one more tip: Before sending your price increase letter, read it out loud.
If it sounds overly technical or too long, simplify it. If you have to stop and think twice at any point, rewrite that part.
Keep it as clear and easy to understand as possible.
Tip #3: Be Confident in Your New Pricing
When telling clients about a price increase, be clear and confident.
If you sound unsure, they might question it.
It has to be clear that you’re not asking for permission. Instead, what you’re doing is making a business decision.
Your pricing reflects the value you provide, the skills you’ve built, and the convenience you provide your clients.
Here are some tips to sound confident in your price increase letter:
- Be clear and direct: Say what’s changing without over-explaining.
- Be firm, not hesitant: Avoid phrases that sound unsure, like “we hope you understand.”
- Don’t apologize: Stand by your decision and state the change clearly.
If you present your pricing with confidence, your clients are more likely to accept it.
Tip #4: Give Your Clients Options
Not every client will accept your new pricing.
If you get pushback, shift your mindset — think of the price increase as a sales process.
Instead of giving clients a take-it-or-leave-it choice, make an effort to meet them halfway.
This is one of the advantages of having a three-tiered pricing model. It allows clients to choose what works best for their budget.
As an example, here’s how Pilot’s presents their 3-tiered packages:
The idea here is that if a client is on your silver-tier plan (“Core” in this example), you can downsell them to the bronze plan (“Essentials”) – which provides a lower level of service at a cost that may be more palatable – instead of losing them altogether.
If you’d like to learn more, you can check out my blog post on tiered packages.
That being said, if they’re already on your most basic plan and still unwilling to pay, it may be time to refer them to another accountant or let them go.
Why?
As I said in one of my previous podcast episodes, holding onto clients who don’t see the value in your services can drain your time and resources.
Your goal should be to work with clients who appreciate your expertise and are willing to invest in it.
When Should You Increase Your Prices?
When You’re Working Too Many Hours
If you’re constantly buried in work just to pull in decent profits, your prices are likely too low.
Raising your prices can help you attract higher-value clients while reducing the need to take on low-margin work.
Instead of stretching yourself thin, you’ll free up time to focus on clients who will pay more for your services.
And with more revenue from fewer clients, you’ll have the flexibility to take more time off, focus on other aspects of the business, or simply enjoy life — just like Rob here.
When Your Revenue Just Isn’t Enough
This is related to the previous section — you might be working a normal number of hours every week but are never earning enough.
Again, pricing is the issue.
Even with a steady stream of clients, if your revenue isn’t enough to pay yourself well or invest in growth, it’s time to increase your rates.
However, raising prices without a clear strategy won’t get you the results you need.
You need to package your services in a way that attracts the right clients. If your pricing doesn’t match the value you provide, or if your packages aren’t structured well, you’ll struggle to land high-quality clients.
If you’re not sure how to price your services effectively, check out this guide to pricing accounting services.
When New Clients Are Willing to Pay More Than Existing Ones
If you’ve raised prices for new clients but kept long-term clients on old rates, you’re leaving money on the table.
Older or legacy clients shouldn’t be paying significantly less, especially if they’re receiving the same service as the new clients.
Here’s a good way to approach this.
1. Assess the gap: Compare pricing and service levels between new and existing clients. Are older clients getting the same service for less? Or are they on a lower-tier plan that justifies the price difference? This will help you determine how much adjustment is needed.
2. Segment your clients: Not every client will be ready for a price increase. Group them into:
- A-tier clients: These clients are in your ideal niche, easy to work with, provide you with referrals, or can likely afford the price increase. The more criteria they meet, the more valuable they are.
- B/C-tier clients: These are clients who are not in your ideal niche, not easy to work with, do not provide referrals or connections, or likely cannot afford the price increase.
3. Re-engage A-tier clients: Schedule a re-engagement call to discuss their needs and the additional value your firm now offers. You’ll find more tips on that in one of my podcast episodes. Present a 3-tiered pricing model (Gold/Silver/Bronze) where their current package becomes Bronze.
Here’s an example of a three-tiered pricing plan that I made using Ignition (affiliate link).
This gives them the option to stay at their level or upgrade, making the price increase feel like an opportunity rather than an ultimatum.
4. Set a minimum baseline: Establish a minimum price threshold for all clients moving forward. If any existing clients fall below this threshold and refuse to adjust, it may be time to part ways.
It sounds very hard to let go of a client you like and have worked with for a long time, but it’s important to remember that you’re running a business.
This is also why I recommend looking for other firms that might be able to take on these clients, so you’re not leaving them high and dry.
When You Haven’t Raised Prices in Over a Year
If it’s been more than a year since your last price adjustment, it’s time to revisit your rates.
A yearly re-engagement call is a great way to do this. Use it to check in with clients, reinforce the value you provide, and gauge their satisfaction. This also sets the stage for a price increase.
But how much should you raise prices?
Many firms default to a 5–10% increase each year to keep up with inflation.
But in my LinkedIn post, I shared why I don’t think this is the right approach:
You can hear more about it in this podcast episode if you’re interested.
Instead of simply raising prices by a set percentage, aim higher to match the real value of your services.
If you have improved your services, taken on more responsibilities, or made a bigger impact on your clients, your pricing should reflect that rather than just keeping up with inflation.
Are You Confident in Your Price Increase Letter?
I hope my price increase template and tips help you confidently adjust your rates and get paid what your services are worth.
Now I want to hear from you.
What do you think of this free template?
Did I miss anything?
Drop a comment below and share your thoughts! 😊
