How To Write A Rate Increase Letter

After bills, the least favorite letter I receive in the mail would have to be rate increases.

Most of them are brief and to the point and I deal with it; I mean, what else can I do? But from time to time I do question my decision to stay with a particular brand or service, especially if I feel that something is not quite right or they're being sneaky.

Unfortunately, unlike utility companies or increases in rent where you just grin and bare it, service providers like personal trainers have to supply their customers with a bit more subtlety as we're in a very volatile and price driven market.

The most common fear that fitness professionals have when increasing their rates is that their clients or members will be frightened off. And while that may be true, it's normally in far fewer numbers than you would expect and the ones left behind are more profitable to offset the difference.

Here's a few reasons that personal trainers and fitness professionals may increase their rates:

• You're booked solid and need to weed out some clients
• Your rent or other expenses have gone up (meaning you probably received a rate increase letter yourself)
• You're expanding your services
• It's the end of a predetermined promotional period
• Everyone else is raising their prices (this is the best time to do it)
• Clients don't complain about your rates
• You're attracting too many price driven clients.

So now that you've decided that your reasons to increase your rate are justified and appropriate, it's time to let your clients know and the best way to do this is by sending them a carefully drafted rate increase letter.

What to consider before sending your increase letter

You should thoroughly evaluate your business prior to increasing your prices. What are your relationships with clients like at the moment, calculate a worst case scenario and prepare for it.

Always notify your clients or members of rate increases. Do not let them find out by invoice as this will lead to phone calls from probably all of them and that's time and effort you could have easily avoided.

Send your rate increase notification my regular mail, not email or text message and preferably printed on letterhead stationary.

Your letter should be sent with at least 30 days notice to give them an opportunity to respond and consider their options; think how you would like to be treated as a consumer.

How you write your rate increase letter is equally important as when you send it to your clients.

Below, I've provided an example of how you can professionally word your rate increase letter.

Dear [Client/members name] (Do not bulk print this letter)

Due to increases in [reason], I/we must unfortunately raise the cost of our personal training service/membership rates to you.

I/We have avoided raising our prices for as long as possible, but I/we can no longer prolong the inevitable.

Please find enclosed our new price list for your review which goes into effect on [date].

Any memberships or services purchased between now and [date of increase] will be honored at the current prices.

I/We understand that as a consumer, you have choices and wish to thank you for choosing [your business name] to help you achieve your goals and know that you will understand the necessity for this price increase.

Sincerely.

[You]

Raising your rates can also be a great marketing strategy to turn the situation into an opportunity for your clients to save money by purchasing before the increase..

Many companies that offer products and services will encourage clients and customers to purchase within a specified time frame in order to receive their regular rate prior to the increase.

This can often lead to a spike in sales which is fantastic, but may hurt the following months bottom line, so don't go spending all that loot on new rims or a new LCD television.

Rate increases are inevitable and people are use to them and this is definitely one of those rare opportunities where if everyone else is doing it, you should to.

When was the last time you increased your rates? Are you nervous about increasing your service or membership rates?

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Additional Reading:
How To Increase Your Personal Training Rate