Price increase letter: how a plumbing shop raises prices without losing customers

Most small plumbing shops raise prices too late, and only after a bad month shows them they've been working for less. A planned price increase is less painful: you change the numbers once, tell the customers who need to hear it, and get back to work.

This guide covers when to raise your prices, the order to do it in, how much notice to give, what to avoid, and three price increase templates you can copy: a letter for repeat homeowners, an email for property managers and commercial accounts, and a short text.

When it's time to raise prices

Start with outside costs. The Bureau of Labor Statistics reported on September 11, 2026 that the Consumer Price Index rose 3.4 percent over the 12 months ending August 2026. Over the same period, the energy index rose 16.3 percent and gasoline 27.4 percent. For a shop that lives in its trucks, that last number shows up in every service call.

National figures only tell you the direction. Your own numbers tell you whether to act:

• Supply house invoices. Compare what you paid this month for your 20 most-used parts with what you paid a year ago.
• Labor. A raise for your tech, a new hire, or simply your own time being worth more than when you set your rates.
• Overhead. Insurance renewals, truck payments, fuel, software, rent.
• Margin on recent jobs. Take ten finished jobs and subtract parts, labor and a share of overhead from what you charged. If the margin has shrunk, your prices are behind.
• Your schedule. If you're booked out for weeks and win almost every quote, your prices are probably below the market.

Our guide on how to price plumbing jobs walks through the math from labor rate to flat rate.

Update the price book first

Before you tell anyone, change the numbers you quote from. Otherwise the increase lives in your head and comes out differently on every job.

1. Raise your labor rate, and re-run the flat rates that are built on it.
2. Update parts and materials from current supply house prices, not last year's.
3. Review your service call fee, the line most exposed to fuel costs.
4. Round to clean numbers. A drain clearing at a round number is easier to say at the door than one with odd cents.
5. Date the change. Write the date the new prices start, and keep the old list for quotes that are still open.

If you don't have a price book yet, this is the time to build one. Our guide to building a plumbing price book shows how.

In Plumbo, now on the App Store and Google Play, you change a price once in your price book and every new quote uses it. Say the job in a voice note, answer only what's missing, and Quote Guard checks for forgotten items before the customer signs on your phone. Try the 60-second demo →

How much notice to give

It depends on who the customer is and what you've already promised them:

• New and one-time customers don't need notice. The new price is on the new quote.
• Open quotes keep the price written on them until the date they expire. That's what the "valid until" date is for.
• Signed jobs keep the signed price. Don't reprice work that's already approved, even if the start date slips; if your terms allowed price changes for materials, follow exactly what they say.
• Maintenance agreements and memberships follow the agreement. Read the price and renewal terms before you write anything. Usually the new price starts at renewal, and the customer should hear about it in writing well before then. Give at least 30 days if you can; more is better. If your agreements renew automatically, check your state's rules on renewal notices.
• Property managers and commercial accounts often set budgets once a year. Tell them as early as you can, ideally before their budget is set, and check any service contract for a notice clause.

What not to do

• Don't surprise anyone on the invoice. The new price belongs on the quote the customer approves, never on the bill afterward.
• Don't hide it in fees. A new "fuel surcharge" or "trip fee" that appears without explanation feels like a trick, even when the cost behind it is real.
• Don't over-apologize. One sentence of reason is enough. A long apology invites negotiation.
• Don't cite numbers you can't back up. "Our costs have gone up" is honest. A made-up percentage isn't.
• Don't raise prices in the middle of a job unless the scope changed and the customer approved a change order.
• Don't send it to everyone at once. One-time customers from two years ago don't need a letter; they'll see the price on their next quote.

Template 1: letter to repeat residential customers

For maintenance agreement members and homeowners who call you regularly. Send by email or mail, and fill in the brackets.

Subject: Our prices from [date]

Hi [first name],

Thank you for trusting [business name] with your home's plumbing [since year / over the past year].

I'm writing to let you know that starting [date], our prices will change. The cost of parts, fuel and insurance has gone up, and we want to keep doing the work properly, with licensed plumbers and quality parts, rather than cut corners.

Here's what this means for you:

• [Your maintenance plan renews on [date] at $[new price] per [year/visit], up from $[old price].]
• Any quote we've already given you keeps its price until the date on the quote.
• [Plan members keep their [discount / priority scheduling / waived service call fee].]

If you have any questions, call or text me directly at [phone]. We appreciate your business and look forward to seeing you at your next visit.

[Your name]
[Business name] · License #[number]

Template 2: property managers and commercial accounts

More formal, with the exact numbers. Property managers need figures they can put in a budget.

Subject: Updated plumbing rates for [company name], effective [date]

Hello [name],

Thank you for working with [business name] on [properties / your portfolio]. I'm writing to give you [number] days' notice of our updated rates, effective [date].

Work orders and quotes approved before [date] will be billed at current rates. [Under our service agreement dated [date], this change takes effect at [renewal / the notice period in section X].]

The change reflects higher costs for parts, fuel, insurance and labor. Our response times, licensing and warranty terms are unchanged.

I'm happy to go over the numbers or send an updated rate sheet for your files. You can reach me at [phone] or [email].

Best regards,
[Your name], [title]
[Business name] · License #[number]

Template 3: short text message

For customers who mostly reach you by text. Keep it to a few lines, and send it only to people who have texted with you before.

Hi [first name], it's [your name] from [business name]. A quick heads-up: starting [date], our [service call fee / plan price] goes to $[new price]. Quotes you already have keep their price. Any questions, just reply here or call [phone]. Thanks for being a customer!

When a customer pushes back

• "You're more expensive than the other guy." "We might be. Our price includes [licensed plumbers / a written warranty / cleanup / a firm price before we start]. I'd rather tell you that up front."
• "Can you keep my old price?" Decide your answer before you send the letter. If you make exceptions, make them on purpose, for a limited time, and write them down.
• "Why now?" Give the one-sentence reason from the letter. Don't argue it.

Some customers will leave, usually the ones who chose you on price alone. The ones who stay are paying you enough to keep doing the work well.

Sources

• U.S. Bureau of Labor Statistics, Consumer Price Index news release, August 2026 (released September 11, 2026: all items +3.4%, energy +16.3%, gasoline +27.4% over 12 months), checked October 7, 2026.