How to Write a Price Increase Email (Templates & Best Practices)
Worried about customer churn from a price increase? Copy and paste our value-driven email templates and follow our step-by-step guide to handle the process well.
Co-Founder
Price increases are normal, especially if your AI product keeps getting better. Your product changes, costs go up, and your services expand. But the way you tell customers about these changes decides if users stick around or leave your product. Remember when the cursor changed plan limits and everyone got mad about the random limit change? Yes, let’s not do that.
We tried a few ways. Some worked. Some did not. This guide shares what to say and what to avoid. You can copy and paste these email templates to communicate better with your customers and handle price changes and grandfathering without causing customer churn.
Chapter 1: The price increase email
What works (and what doesn’t)
You can skip the essay when you send an email. Keep it short, clear, and honest. Lead with value, not an apology. “Sorry to inform you…” It’s just awful and makes people mad. Don’t hide the new price in a wall of text. Bullet points are your friend.
What every price change email needs
- Headline: clear and direct
- When it starts: the exact date
- What got better: real examples
- Old price vs new price: $X to $Y
- Options: keep the price for a while, switch plans, or talk to us
Template 1: Value first
Subject: Updates to your ${Product Name} plan
Hi ${First Name},
Over the last year, we shipped ${features} that helped customers ${result}.
From ${date}, your ${plan} will change from $X to $Y per month.
What you get
- All your current features
- Access to ${new capability}
- ${Specific benefit they care about}
Your options
- Keep your current rate until ${date} by ${action}
- Switch to ${alternative plan} at $Z per month
- Have questions? Just reply to this email
Thank you for being with us,
${Your name}
Template 2: Clear reason, clear change. Be extremely transparent with users.
Remember, trust and clarity are everything.
Subject: Pricing update for ${Product} on ${date}
Hi ${First Name},
We are updating pricing on ${date} so we can keep delivering the quality you expect.
Why are we changing the price
${Short reason. For example: higher infra costs, more support staff, new data features.}
What changes
- ${Plan}: $X → $Y
- All your current features stay
- You also get ${new benefit}
For you
You can keep your current price until ${date} while you decide on your next steps.
Need help? Just reply.
${Team name}
Chapter 2: Grandfathering made simple
Grandfathering means the old price for current customers and the new price for new customers.
When it makes sense
You want to test new pricing without risking a mass exit. You want to keep your loyal users happy while you figure things out. Maybe your product has changed a lot, and the old plans just don’t fit anymore, so new tiers actually make sense. That’s when grandfathering is the right approach.
Why “forever” is risky
- Lost revenue: very old discounts live on while your product grows
- More work: more plans to support in billing and support
Smarter ways
- Time limit: keep the old price for 12 to 24 months
- Legacy tier: a fixed “Founder” plan with a clear path to upgrade
- Gradual step up: move to the new price over 2 to 3 years
Template 1: Limited grandfathering
Subject: We are changing our pricing, but you keep your current price for now
---
Hi ${First Name},
We are launching ${Product} 2.0 with ${key improvements}.
New pricing starts soon, but there is good news for you.
Your current price
You keep $X per month until ${date}. This gives you time to try the new features and plan your move.
After ${date}
- Standard at $Y per month
- Premium at $Z per month for ${extra benefits}
- Basic at $A per month with fewer features
What you keep today
- All your current features
- Access to ${specific new features}
- Priority support
No action needed now. We will remind you before ${transition date}.
${Your team}
Template 2: Legacy or founder tier
Subject: Your Founding users plan
Hi ${First Name},
Thanks for backing us in the early days. You are our founding users.
As you know, we have updated our pricing, but you get to keep the current pricing.
For that, we made a Founder plan for you.
You get
- Your current price is $X per month, locked in
- All features in your current plan
- Access to ${specific new feature}
- A founder badge in your account
- Fast lane support
New prices for others
- Standard: $Y per month
- Premium: $Z per month
Your founder price stays $X per month.
Questions? Just reply.
${Team}
Chapter 3: After you hit send
The first 48 hours
Watch replies. Answer fast. Kind tone. Clear options.
Common pushback and clean replies
“Too expensive”
- Offer a lower plan or a usage-based plan
- Show value per month or per seat
- Offer an annual contract with better terms
“Not enough notice”
- Say you understand
- Extend the old price by 30 to 60 days
- Offer a simple move plan
“Don’t use these new features”
- Offer a classic plan with current features
- Show how to use what they have
- Share simple usage stats if helpful
Recovery email
Hi ${First Name},
I saw your note about the pricing update. I get it. Change is hard.
Here are a few ways we can help:
1. Keep your current rate for 60 more days while we pick the right plan
2. Switch to ${alternative plan} that fits your budget
3. Book a short call so I can learn what you need
Which one helps you most?
${Your name}
${Add Direct contact info}
Chapter 4: Send the right message to the right user
Segment your users, personalize your message.
High-value accounts
- Reach out 1-on-1 before the mass email
- Match plan change with contract dates
- Give a named person to help
Price-sensitive users
- Longer grandfather window
- More plan choices
- Show how they are saving money and the value they are gaining
Feature-heavy users
- Talk about the features they use
- Give early access to new features
Make it personal
- Mention how long they have been with you
- Call out what they use the most
- Share the wins they got with your product
Chapter 5: Track if it worked
First week
- Email open rates and clicks
- Support tickets and replies
- Cancel requests
In 1 to 3 months
- Real churn vs what you expected
- Upgrades and downgrades
- Failed payments
In 3 to 12 months
- Money per customer over time
- Net revenue kept from current users
- Customer satisfaction scores
Follow-up plan
- Announcement: main price email
- Reminder: 30 days before the change for silent users
- Final notice: 7 days before the change
- Welcome: confirm new plan and price
- Check in: 30 days later, offer help
Wrap up
Price changes are a very common practice and do not have to cause panic. Be clear, be kind, give time, and offer choices. Reply fast.
Do not skip the following
- Give at least 30 days' notice
- Be value first, not sorry first
- Give options, not ultimatums
- Fast replies
- A clean follow-up plan
Do not keep old prices forever. Use a time limit or offer a legacy plan. Try to raise the price in steps. People do not leave only because of the new price. They leave because of how the change is handled. Handle it well, and the right customers will stay. Get the message right, keep your best customers.
