Free tool
Price increase letter
Most owners know they are underpriced and put this off for another year, because the message is hard to write and easy to get wrong. Fill in six boxes and copy the email, the text and something to say out loud.
Text message
If they ask you in person
What makes these land badly
- Finding out from an invoice. The same increase announced two months ahead reads as a business decision. Discovered on a bill, it reads as something done to them.
- Apologizing too much. If you sound like you think it is unreasonable, you have invited the argument yourself.
- A vague reason. "Due to rising costs" is filler. "Insurance and supplies have both gone up" is a sentence a person believes.
- Your crew not knowing. Somebody quotes the old price the following week and now you look disorganized. Tell them first.
- Doing it by stealth. Quietly shortening the visit to protect margin is worse than raising the price, and customers notice sooner than owners expect.
What actually happens
Fewer people leave than you expect, and the ones who do are usually the accounts you liked least. A customer happy with the work rarely moves over a modest increase, because finding and vetting somebody new costs them time they do not want to spend.
If a large share do leave, the price was rarely the real reason. It gave permission to a decision they had already half made.
Work out the number before you send anything
Raising by a round-sounding amount is guessing. Our job profit calculator shows the price you need to hit a real margin on that job, which is usually a better starting point than adding ten percent because it felt about right.
Common questions
How much notice should I give before raising prices?
Sixty days is the usual advice and ninety is safer for commercial accounts. The point is that people should hear about it well before it appears on an invoice. A price rise discovered on a bill feels like something done to you, and the same rise announced two months ahead feels like a business decision you were told about.
Should I apologize for raising prices?
No. Be straightforward without being sorry. Over-apologizing signals that you think the increase is unreasonable, which invites an argument you did not need to have. State the new price, the date, and one honest sentence about why.
How many customers will I lose?
Fewer than you fear, and the ones you lose are usually your worst accounts. A modest increase on a good service rarely moves people who are happy. If a large share leave, the problem is usually the relationship or the work rather than the price.
Should I raise prices for everyone at once?
Not necessarily. Many owners start with their most underpriced accounts, or apply it to new customers first and existing ones at renewal. Whatever you choose, tell your crew before you tell customers, so nobody is quoting the old price a week later.
Want this emailed to you?
Your numbers are already on the page and they always will be. This is only here so you can keep a copy or send it to whoever does your books.