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How-To Rate Increase Letter

Discussion in 'Business Fundamentals' started by QuadPlower, Jan 31, 2008.

  1. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I recieved a letter from my heath insurance provider explaining that my rates are going up. (Like they do every year) As I'm changing the amount in my accounting software, I read the letter again. It was so good that I decided to copy it. I changed words like "quality insurance" to "quality service" and so on.

    It can be used to explain why you are raising their rates. Feel free to use it or change it to fit your needs if you would like.

    Dear Valued Customer:

    Thank you for choosing (Company Name) as your snow plowing service provider. We work hard to provide our customers with quality service at an affordable cost. In spite of our efforts, operational costs continue to go up due to many factors. Some of these include increased fuel costs, higher labor costs, vehicle maintenance and increased costs for liability insurance. New technology and procedures often improve the quality and speed at which we can remove snow & ice, but also contribute to rising costs. Periodically, we have to adjust the amount we charge our customers to compensate for these increases.

    These adjustments are not based on your individual rates. Everyone serviced by (Company Name) is receiving this adjustment for the 2008-2009 Winter Season. If you have a multiple year contract, this rate increase will not effect you.

    (Insert dollar amounts here)
    Residential Driveways will increase by $X.xx
    Hourly Rates will increase by $X.xx
    Commercial Rates will increase by $XX.xx

    We truly value your business, and we hope you will continue to choose (Company Name) to meet your snow removal needs for years to come. Our commitment to you remains the same – to provide high quality snow removal and superior customer service at an affordable rate.

    If you have any questions, comments, or concerns, please feel free to contact (Company Name) at (269) 555-1212 or by email at snowremoval@companyname.com.

    Thank you for your understanding in this matter.


    John Smith
    Owner: (Company Name)
  2. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    It does sound profesional, hopefully it will help you increase your rates. With all the stuff in the news about an economic slow down, I"m not sure the prices will go up but I know my expenses will. Good luck.:drinkup:
  3. fireball

    fireball PlowSite.com Veteran
    Messages: 545

    Thank God for cut and paste
  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    The sad thing is that I probably won't increase my rates. I have to re-bid a job next season and with the competition out there, I might even reduce them. Dang I hate to say that.