Telling your customers you’re putting your prices up. That’s something no business owner enjoys.
I’ve had this conversation with more solopreneurs than I can count. The worry is always the same. What if they say no? What if they leave? What if they think I’m being greedy?
So let me take the fear out of it. I’m going to tell you when to put your prices up, how to tell people and exactly what to say.
First, a reality check
Prices go up. Everyone knows this. Your clients see it every time they do the weekly shop, fill up the car or open their energy bill.
Nobody expects your prices to stay the same forever. In fact, if you’ve been charging the same for three years (or more!) some of your clients are probably wondering when you’re going to put them up.
Putting your prices up isn’t greedy. It’s normal. Your costs go up every year. Your skills and experience grow every year. Your prices should reflect that.
When to put your prices up
There are a few natural moments to review your prices:
- Once a year. Pick a date and stick to it. January and April are popular because they line up with the new year and the new tax year
- When your costs go up significantly. If your materials, software or insurance jump, it’s fair to pass some of that on
- When you’ve added something. A new qualification, new skills or a better process all add value
- When you’re fully booked. If you’re turning work away, your prices are too low. Demand is telling you something
If your prices are below where you need to be, now is a good time to change that. Give your clients 30 to 90 days’ notice and the new prices can start from that date.
NB: If you haven’t carried out a price review recently, check out this blog for a step-by-step ‘how to’.
New clients versus existing clients
Here’s the good news. New clients don’t need telling. They just see your new prices. No awkward conversation required.
So the simplest first step is to update your prices for new enquiries straight away. Change your website, your proposals and your price list. Anyone new pays the new rate from today.
Existing clients are where you need to give a bit more thought.
How much notice to give
Give your existing clients proper notice. I’d suggest:
- At least 30 days for one-off or occasional clients
- 60 to 90 days for regular or retained clients
Check your terms and conditions too. If you’ve agreed a fixed price for a set period, honour it. Your new price starts when that agreement ends.
Notice gives people time to budget. It’s also respectful, and clients notice that.
How much to put your prices up by
This depends on how far below your target you are.
If you just need to keep pace with rising costs, a small annual rise of 5 to 10 per cent is easy for clients to absorb.
If you’re a long way below where you need to be, you have two options. You can make one bigger jump. Or you can increase in stages over a year or two. There’s no right answer. It depends on your clients and how quickly you need the money.
Whatever you decide, round your prices to ‘sensible’ numbers. £350 rather than £349.25.
How to tell people
Keep it short: You don’t need to write an essay. A long, apologetic explanation makes it look like you’re on shaky ground. A short, clear message makes it look like what it is: a normal business decision.
Don’t apologise: I know it’s very British of us. But “I’m so sorry, I really hate to do this” isn’t helping anyone. You aren’t doing anything wrong.
Say thank you: Do thank them for their business. Being appreciated is lovely. It sets a warm tone.
Mention the value: You can briefly mention what they get from working with you, or anything new you’re offering. One sentence is plenty.
Be clear about the details: Tell them the new price, when it starts and whether anything else is changing.
A simple email you can copy
Here’s a simple notification email template you can adapt. Change the bits in brackets so that they apply to you.
Subject: A quick update on my prices for 2027
Hi [First Name]
I wanted to let you know about a change to my prices.
From [date], my [service name] will be [new price]. This is the first change since [year], and it means I can keep giving you the same level of service and support.
Your current rate will stay the same for anything booked before [date].
Thank you so much for working with me. I really value it, and I’m looking forward to [what’s coming up for them].
If you’ve got any questions, just hit reply.
[Your name]
That’s it. Short, warm and clear.
Should you tell them by email or in person?
For most clients, email is fine. It gives them time to take it in and it gives you both a written record.
For your bigger or longer-standing clients, it’s worth a quick phone call or a mention in your next session. Then follow up with an email so they have the details in writing.
Look after your loyal customers
If you’ve got customers who’ve been with you for years, you might want to say thank you in a more practical way. You don’t have to, but it’s a nice touch.
You could hold their current rate for an extra month or two. You could give them first pick of your diary for upcoming products or services. Or you could add a small extra to their next booking. None of these cost you much and they show you value the relationship.
What I wouldn’t do is give them a permanent discount. That just stores up the same problem for next year.
What if someone pushes back?
Most people won’t. You’ll be surprised how many people just say “that’s fine” or “about time too”.
But if someone does question it, stay calm and stay friendly. You can say something like: “I completely understand. I’ve held my prices for a long time and this brings them in line with where they need to be.”
Then stop talking! You don’t need to justify it further.
If they still aren’t happy, you’ve got a few options. You could offer a smaller package at a lower price. You could agree a short transition period. Or you could accept that they might not be the right client for you any more.
What if someone leaves?
Some people might. That’s OK.
Here’s some maths that might help.
If you put your prices up by 20 per cent, you could lose one in six of your clients and still earn the same amount of money. With less work.
And the clients who leave over a price rise are often the ones who were hardest to work with. The ones who haggled, who paid late and who asked for “just one more thing”. Letting them go frees up space for clients who value what you do.
Rachael Janes of Reef Make and Do is a great example. When Rachael came to me, she was stuck in firefighting mode with no real handle on what was profit. Together we created proper pricing structures for her private and corporate workshops. Did her customers run for the hills? Quite the opposite. They’re spending more and booking more workshops. And Rachael knows exactly how much is in the bank and how much of it is profit.
Make it a habit
The best way to take the drama out of price rises is to make them routine. Put a reminder in your diary for the same time every year. Review your costs, review your prices and make a small adjustment.
When you do it every year, clients expect it. And you never end up in the position of needing a big, scary jump.
Your next step
This week, update your prices for new enquiries. Change your website and your proposal template. That’s the easy bit, and it starts paying off straight away.
Then pick a date for your existing clients and draft your email (maybe use the template above). You don’t have to send it today. Just get it written.
If you’d like more help with your pricing and the rest of your business foundations, download my free workbook 7 Simple Steps to Boost Your Income and Impact This Autumn.
And if you’d like a helping-hand with you business (including working out your new prices) book a 30-Minute Consult.