---
name: annual-rate-increase-letter
description: A short letter to existing clients announcing a rate increase, plainly. No buried lede, no over-apologizing, no guilt. Acknowledges the relationship and closes warm.
when_to_use: When you've decided to raise your rates and you're scared to send the email, especially to your long-time loyal clients.
saves: weeks of procrastination plus the revenue you've been leaving on the floor
brand: Scrappy Start
brand_url: https://scrappystart.ai
license: CC0
version: 1
---

# Annual rate increase letter

You've been charging the same rate for three years. Rent went up. Your materials cost more. You're working harder for less, and you know it. The new rate is fair. You've also been putting off the email for six months because you don't want to lose the loyal client. This skill writes the letter.

## The setup

1. Open Claude. Start a new conversation.
2. Decide on the new rate, the effective date (give clients at least four weeks), and the reason in plain English. Not jargon. Not "due to rising operational costs." The actual reason, the one you'd say at the counter.
3. Have one sentence about the relationship if you want to acknowledge it.

## The prompt

```
I'm a [wedding photographer / wedding planner / florist / DJ /
videographer / day-of coordinator] and I'm raising my rates.

Current rate: [e.g. "$3,200 / wedding coverage"]
New rate: [e.g. "$3,800 / wedding coverage"]
Effective date: [e.g. "January 1"]
The reason in plain English: [one sentence the client would
understand, e.g. "gear and editing costs have gone up, I've added
a second shooter option, and my last raise was three years ago"]

Optional: this is going to a long-time client I've worked with
for [N] years.

Write me a short letter:
1. Tells them the new rate, plainly, no buried lede
2. Says when it takes effect and gives them at least 4 weeks
3. Acknowledges the relationship if it's a long-time client
4. Doesn't apologize. Doesn't over-explain. Doesn't guilt them.
5. Closes with "looking forward to seeing you next month" energy,
   not "thank you for your understanding" energy

My voice is warm, direct, no jargon. Sign with my first name.
```

## What you'll get back

A clean, send-ready letter. For a photographer raising wedding coverage from $3,200 to $3,800:

> Hey Rachel,
>
> Quick note about a change starting January 1. After three years at the same rate, I'm moving wedding coverage from $3,200 to $3,800. The short reason: gear costs have gone up, editing time is longer than it used to be, and it's been three years.
>
> You've sent me two referrals in the past year and I wanted to give you the heads up directly before I update the site. Same shooting style, same editing, same turnaround. Just a different number.
>
> Looking forward to the spring season.
>
> Jamie

## Adapt it

Two things owners get wrong: burying the new number ("starting in the new year, there will be some changes to my pricing structure." Just say the number), and apologizing ("I'm so sorry to have to do this." You're not sorry, you're running a business). The letter above does neither. Save the prompt and use it every time you raise.

## A note on timing

Send rate-increase letters at least four weeks before the effective date. Personal clients (stylists, therapists, coaches) deserve six. Don't bury the announcement at the bottom of a holiday newsletter. Treat the letter like a real piece of communication and most clients will respect it. The ones who leave were going to leave anyway.

## Where this came from

The most-procrastinated email in small business. Comes up in nearly every Scrappy Hour with service providers eventually. Pairs with [quote-followup-without-being-pushy](https://scrappystart.ai/skills/quote-followup-without-being-pushy) for the new-business side of pricing.

Jamie at Scrappy Start