Price Increase Email Sequence: How to Announce Higher Prices Without Losing Customers
Raising prices is one of the most dreaded moments in running a SaaS company. You know you need to do it. Your costs have gone up, you have shipped more value, and your current pricing probably undervalues what you provide. But the fear of customer backlash keeps many founders stuck at their original prices for years, slowly eroding their margins and limiting their ability to invest in the product.
The difference between a price increase that damages customer relationships and one that customers accept gracefully comes down to communication. The actual price change matters far less than how you announce it, when you announce it, and what options you give customers to respond.
This guide covers everything you need to build a price increase communication sequence that maintains trust: the psychology of pricing announcements, timing strategies, grandfather clause decisions, and templates for every scenario you will encounter.
Why Price Increase Emails Are Different
Price increase emails are fundamentally different from other SaaS communications because they announce something customers will perceive as negative. Unlike feature announcements or helpful tips, you are telling people they will pay more for something they already have. This requires a different approach.
| Challenge | Why It Matters | How Email Addresses It |
|---|---|---|
| Trust preservation | Customers may feel blindsided or taken advantage of | Early notice and transparent reasoning |
| Value justification | The price is going up but the product feels the same | Remind them what they are getting |
| Churn prevention | Some customers will consider leaving | Grandfather offers and alternatives |
| Objection handling | Customers will have questions and concerns | Proactive FAQ and support availability |
| Timing sensitivity | Bad timing amplifies negative reactions | Strategic announcement scheduling |
The goal is not to prevent all negative reactions. That is impossible. The goal is to treat customers with respect and give them time and options to decide how to respond.
The Psychology of Price Increases
Before writing your emails, understand what customers actually object to when prices go up. It is rarely the money itself.
Customers object to surprises. A price increase that appears out of nowhere feels like a betrayal. They signed up at one price, planned their budget around it, and now you are changing the deal. The surprise creates distrust that lasts beyond the price change itself.
Customers object to feeling trapped. If they learn about the increase on their billing date, they feel like they have no choice. Even if they would have stayed anyway, the lack of options feels coercive.
Customers object to entitlement. When companies raise prices without explanation, customers read it as greed. "They just want more money" becomes the narrative, even if the price increase is entirely justified by cost increases or value additions.
Customers accept price increases when they feel respected. Advance notice, clear reasoning, options for response, and acknowledgment that this affects them financially transforms the same price increase from offensive to acceptable.
Building Your Price Increase Sequence
A well-structured price increase sequence has multiple touchpoints spread over 30-60 days. This gives customers time to process, ask questions, make decisions, and adjust their budgets.
| Touchpoint | Timing | Goal | Tone |
|---|---|---|---|
| Advance notice | 30-60 days before | Inform and explain | Respectful, transparent |
| Value reminder | 20-40 days before | Justify the increase | Appreciative, factual |
| Options email | 14-21 days before | Present alternatives | Helpful, supportive |
| Final reminder | 5-7 days before | Confirm upcoming change | Direct, clear |
| Change confirmation | Day of change | Acknowledge it happened | Brief, supportive |
| FAQ follow-up | 2-3 days after | Handle lingering concerns | Patient, available |
Important: The sequence should adapt based on customer actions. If someone locks in early or asks to cancel, they exit the standard sequence and enter a different path.
Email 1: Advance Notice (30-60 Days Out)
The first email does the heavy lifting. It needs to deliver the news, explain the reasoning, present options, and set the right tone for all future communications about this topic.
For general price increases across all customers
Important update about your [Product] subscription
Hi [firstName],
I wanted to give you advance notice about a change to [Product] pricing that will take effect on [effectiveDate].
What is changing: Your [currentPlan] subscription will increase from [currentPrice] to [newPrice] per [period].
Why we are raising prices: When you signed up, [Product] had [originalFeatureCount] features. Since then, we have added:
- [majorFeature1]
- [majorFeature2]
- [majorFeature3]
- [numberOfOtherFeatures] other improvements
Our costs have also increased significantly, particularly for [costFactor1] and [costFactor2]. This is the first price increase in [yearsSinceLastIncrease] years, and we have held off as long as possible.
Your options:
- Do nothing: Your subscription will renew at the new rate starting [effectiveDate]
- Lock in your current price: Upgrade to annual billing before [lockInDeadline] and keep [currentPrice] for the next 12 months
- Downgrade: Switch to a smaller plan if the new pricing does not fit your budget
- Cancel: If [Product] no longer makes sense, we understand
What happens next: Your next billing date is [nextBillingDate]. If that is before [effectiveDate], you will be billed at your current rate. If it is after, the new rate applies.
I know price increases are never welcome news. If you have questions or want to discuss your options, just reply to this email. I read and respond to every message personally.
Thank you for being a [Product] customer, [founderName]
P.S. Existing annual subscribers are not affected by this change until their current term ends.
Email 2: Value Reminder (20-40 Days Before)
The second email reinforces why the customer signed up and what they have gotten since. It is not a hard sell. It is a reminder of value that provides context for the price increase.
Highlight what the customer has actually accomplished
What you have accomplished with [Product]
Hi [firstName],
With the pricing change coming up on [effectiveDate], I wanted to share what you have accomplished with [Product]:
Your [Product] impact:
- Time with us: [customerTenure]
What that means: Based on industry benchmarks, this represents approximately [estimatedValue] in value, whether that is time saved, revenue generated, or problems avoided.
Context on the change: Your subscription is going from [currentPrice] to [newPrice] on [effectiveDate]. That is a [percentageIncrease]% increase. Given what you have accomplished, the ROI still works out strongly in your favor.
Your options are still open:
- Lock in current pricing with annual billing before [lockInDeadline]
- Continue at the new rate
- Adjust your plan if needed
If you have questions about the change or want to discuss options, just reply.
[senderName]
Email 3: Options Email (14-21 Days Before)
This email focuses specifically on helping customers choose the right response. Present all options clearly without judgment.
Present all choices simply
Your options before the [Product] price change
Hi [firstName],
The [Product] pricing change takes effect on [effectiveDate]. Here are your options:
Option 1: Lock in your current rate Switch to annual billing before [lockInDeadline] and keep paying [currentPrice] for the next 12 months. [Link to switch to annual]
Option 2: Stay on monthly at the new rate Do nothing. Your subscription will renew at [newPrice] starting [effectiveDate].
Option 3: Downgrade your plan If you are not using all [currentPlan] features, [lowerPlan] at [lowerPlanPrice] might be a better fit. [Link to downgrade]
Option 4: Cancel If [Product] no longer makes sense for your situation, you can cancel anytime before [effectiveDate] to avoid the new rate. [Link to cancel]
Option 5: Talk to us Not sure what makes sense? Reply to this email. I am happy to look at your account and make a recommendation.
The deadline to lock in current pricing is [lockInDeadline]. After that, options 2-4 remain available.
[senderName]
Email 4: Final Reminder (5-7 Days Before)
This is the last chance email. Keep it short and action-focused.
Brief, clear deadline reminder
[X] days until the [Product] price change
Hi [firstName],
Quick reminder: [Product] pricing changes on [effectiveDate], [daysRemaining] days from now.
Your current rate: [currentPrice] New rate: [newPrice] Change date: [effectiveDate]
Before then, you can:
- Lock in current pricing with annual billing: [annualLink]
- Downgrade to a smaller plan: [downgradeLink]
- Review your options: [accountLink]
After [effectiveDate], your subscription continues at the new rate automatically.
Questions? Reply to this email.
[senderName]
Email 5: Change Confirmation (Day Of)
When the change takes effect, send a brief confirmation. This is not a sales email. It is acknowledgment.
Confirm the change has taken effect
Your [Product] pricing has been updated
Hi [firstName],
As of today, your [Product] subscription has been updated to the new pricing.
Your new rate: [newPrice] per [period] Next billing date: [nextBillingDate] Amount: [nextBillingAmount]
Everything else about your account stays the same. Your features, data, and settings are exactly as you left them.
If you have questions about the change or your account, reply anytime.
Thank you for continuing with [Product], [senderName]
Handling Objections and Special Cases
Price increases generate objections. Here are templates for common scenarios.
When customer says they cannot afford the increase
Re: [Product] pricing
Hi [firstName],
I understand the price increase does not fit your budget right now. Let me share some options.
Option 1: Extended lock-in I can extend your deadline to switch to annual billing by [extensionDays] days, giving you more time to budget for the annual payment at your current rate.
Option 2: Downgrade [lowerPlan] at [lowerPlanPrice] might cover what you need. You would lose [removedFeatures], but if you are not using those heavily, it could work.
Option 3: Pause Pause your subscription for [pauseDuration]. Your data stays safe, and you can resume when your budget allows. No charge during the pause.
Option 4: Hardship consideration If none of these work but you genuinely need [Product], reply and tell me your situation. We have a small budget for customers in difficult circumstances.
Let me know what would help.
[senderName]
Measuring Success
Track these metrics to evaluate your price increase communication:
| Metric | What to Measure | Good Target |
|---|---|---|
| Churn rate | Cancellations within 60 days of announcement | Under 5% incremental |
| Lock-in conversion | Customers who switched to annual | 15-25% of monthly customers |
| Downgrade rate | Customers who moved to lower plans | Under 10% |
| Support volume | Emails and tickets about the increase | Manageable spike, then return to normal |
| NPS impact | Score change before and after | Minimal drop, recovery within 90 days |
| Revenue impact | Net revenue change including churn | Positive within 6 months |
The goal is not zero complaints. Some churn is acceptable and even healthy if it means you can sustain the business. The goal is to retain the customers who genuinely value your product while being fair to those who cannot or will not pay more.
Implementation Checklist
Week 1: Preparation
- Finalize new pricing and grandfather policy
- Segment customers by tenure, plan, and sensitivity
- Draft all emails and get legal review if needed
- Set up tracking for metrics
Week 2-3: Announcement
- Send initial announcement (30-60 days before)
- Monitor replies and update FAQ
- Prepare support team with answers
Week 4-5: Reinforcement
- Send value reminder email
- Send options email
- Handle individual objections
Week 6: Deadline
- Send final reminder
- Process annual lock-ins
- Prepare confirmation emails
Week 7+: Follow-up
- Send change confirmations
- Monitor churn and support volume
- Refine messaging for future increases
The Bottom Line
Price increases are uncomfortable but necessary. The customers who stay after a well-communicated increase are your most valuable ones. They have proven they value what you provide enough to pay more for it.
The key principles:
- Give plenty of notice (30-60 days minimum)
- Explain the reasoning honestly
- Offer meaningful alternatives (annual lock-in, downgrade, pause)
- Handle objections personally and respectfully
- Accept that some churn is okay
If you treat customers with respect through the process, most will stay. The ones who leave were often on the edge anyway. And the business you build on sustainable pricing is stronger than one propped up by unsustainably low prices.
Need help automating your price increase communications? Sequenzy lets you build event-triggered email sequences that adapt based on customer behavior. Set up your pricing communication once, and let automation handle the timing and follow-ups.
Related guides:
- Churn Prevention Email Sequence: Catch at-risk customers before they cancel
- Annual Renewal Email Sequence: Retain your annual subscribers
- Upsell Email Sequence: Expand revenue from existing customers