Most owners delay rate increases until wages and insurance have already eaten the year. Guilt is not a pricing method. Cost your work, raise the lines that miss target, and tell customers in a way that sounds like professionalism — not an apology.
Start with evidence, not a round percentage
Cost your top five service types in the job profitability calculator. Raise the ones below target. Leave healthy lines alone. A blanket 10% bump overcharges work that was already fine and under-fixes the losers.
Sequence the increase
- New customers first — today's book, no exception list.
- One-time / infrequent customers next, on the next booking.
- Repeat and membership accounts last, with 30 days' notice where you have a relationship.
Do not grandfather forever. A "special rate" that never expires becomes a second, unprofitable company inside yours.
What to say
Keep it short. You are not negotiating your cost structure.
- "Our service rates updated on [date] to cover labor, insurance, and truck costs. Your visit is quoted at the current book."
- For members: "Plan pricing stays as written through [date]. After that, dues / repair rates move to the new book. Happy to walk through what is included."
If someone leaves over a fair increase, they were buying a discount, not your work. Your best customers usually stay when communication is clear and the work stays good.
Hold the line in the office
Train CSRs not to waive the new book. Offer a membership or a scheduled window, not a secret price. Track win rate for two weeks after the change — a small dip that recovers is normal. A collapse means the increase was huge, the script was weak, or you were already the cheap option.
Frequently asked questions
How do contractors raise prices without losing their best customers?
Lead with real job costs, sequence increases, and talk to high-value accounts first so the change is explained — not sprung as a surprise.
Should I raise every rate at once?
Usually no. Raise the proven losers and truck-roll minimums first. Keep communication tight with customers you want to keep.
What if a customer pushes back?
Show the cost of the truck roll and the work. If they only buy on the old price, they may not be a profitable keep.
Know what the new rate must cover
Cost a typical ticket in the free calculator before you announce anything — then raise with a number you can defend.