When to Raise Your Prices (And How to Do It Without Losing Clients)

Your costs have gone up 15% this year. Fuel's more expensive. Food costs are rising. But you're still charging the same rates you set in 2023. Sound familiar? Here's how to know when it's time to raise prices—and how to do it without losing your best clients.

5 Signs You're Undercharging

Most vendors wait too long to raise their prices. They're worried about losing clients, or they think the market won't bear higher rates. But here's the thing—if you're experiencing any of these signs, you're probably already leaving money on the table.

1. You're Booked Solid Months in Advance

If your diary's full three to six months out and you're turning away work, that's the market telling you something. When demand outstrips supply, prices should rise. A good rule of thumb: if you're booked more than 70% capacity three months ahead, you've got room to increase.

2. Your Quote-to-Booking Rate is Above 60%

Track how many quotes turn into actual bookings. Industry average sits around 30-40%. If you're converting more than 60% of your quotes, your prices are too low. You're essentially giving clients a deal they can't refuse—which sounds nice until you realise you're working harder for less.

3. Your Costs Have Increased

This one's obvious but worth stating: if your costs go up, your prices need to follow. Between 2022 and 2024, UK food costs rose 25%. Fuel fluctuated wildly. Insurance premiums jumped. If you haven't adjusted for these, your profit margin's shrinking every month.

4. You're Exhausted and Resentful

This one's less scientific but equally important. If you're dragging yourself to events, feeling bitter about the workload, or fantasising about jacking it all in—that's burnout talking. And burnout often stems from being underpaid for overwork. Your prices should reflect the actual effort involved.

5. Competitors Charge More for Similar Services

Do your research. Check what others in your area charge for comparable offerings. If you're consistently 20-30% below market rate, you're not being competitive—you're undervaluing yourself. Clients don't always choose the cheapest option; many associate higher prices with higher quality.

How Much Should You Raise Prices?

The magic number depends on your situation, but here's a framework that works:

• Cost-based increase: Calculate your actual cost increase and add 5-10% on top. If costs rose 15%, aim for a 20-25% price increase.
• Market-based increase: If you're below market rate, move to match competitors over 1-2 increases rather than one big jump.
• Value-based increase: Added new equipment? Gained certifications? Improved your offering? Price accordingly—often 10-15% for significant upgrades.

For most vendors, an annual increase of 5-10% is sustainable and expected. If you haven't raised prices in two or more years, you might need a larger correction—15-25%—but communicate it carefully.

How to Communicate Price Increases

This is where most vendors get nervous. But handled well, a price increase can actually strengthen client relationships. Here's how to do it right.

Give Advance Notice

Never surprise clients with higher prices. Give at least 30 days notice for new bookings, and honour existing quotes for 60-90 days. For repeat clients, send a personal message 6-8 weeks before the change takes effect.

Be Direct and Confident

Don't apologise. Don't over-explain. State the change clearly:

"From 1st April, our standard package will be £X (previously £Y). This reflects increased operating costs and recent improvements to our service. All bookings confirmed before this date will be honoured at current rates."

That's it. No grovelling required.

Highlight Added Value

If you've improved your offering, say so. New equipment, better ingredients, faster response times, enhanced presentation—these justify higher prices. Make sure clients understand what they're getting.

Offer Loyalty Incentives (Sparingly)

For long-standing repeat clients, consider a smaller increase or a "grandfathered" rate for the first year. But don't overdo this—you'll end up right back where you started.

What About Losing Clients?

Here's the uncomfortable truth: you might lose some. And that's okay.

If a client only booked you because you were cheap, they were never really your ideal client. When you raise prices, you naturally filter for clients who value what you do—not just what you charge.

The maths often works out too. Lose 10% of clients but increase prices 20%? You're working less and earning more. That's not a loss—that's a win.

Most vendors report losing fewer than 5% of clients after a reasonable price increase. The ones who stay often become better clients—more respectful of your time, more likely to refer others, less prone to haggling.

When's the Best Time to Raise Prices?

Timing matters. Here are the best windows:

• January: New year, new prices. Clients expect it.
• After a slow season: Before bookings ramp up for peak season.
• After a significant upgrade: New van, new equipment, new certifications.
• Annually: Build the expectation that prices adjust yearly with inflation.

Avoid raising prices mid-season when you're already in negotiation with multiple clients, or immediately after a service issue.

The Bottom Line

Raising prices isn't greedy—it's sustainable business practice. Your skills have value. Your time has value. Your experience has value. Price accordingly.

If you've been putting off a price increase because you're worried about the reaction, remember this: clients who value you will stay. And the ones who don't? They'll make room for better ones.