[Date]

[Addressee]

Dear [Name]:

This letter will confirm our telephone conversation with you 
today concerning an increase in our billing rate to 
$ [amount] per hour, effective [date].  

It is necessary that we request this increase due to a rise 
in the cost of conducting our business. We are faced with 
an increase in payroll taxes and insurance, along with an 
increase in our overhead costs. In addition to the above, 
we also seek a modest profit. 

Attached are copies of our service agreement and we 
request that you sign one copy and return it to us indicating 
your approval of this new rate. 

Very truly yours,