How to Put Your Prices Up Without Losing Clients (A Guide for Small Business Owners)

If you only read one bit, read this: to put your prices up without losing clients, decide your new price based on your costs and value (not your nerves), give existing clients 30 to 60 days' notice, tell them clearly and briefly without over-apologising, and keep delivering the same standard of work. Most businesses lose far fewer clients than they fear. Often none.

Now, let's talk about why you haven't done it yet.

Because I bet you've thought about it. You've done the maths in your head at 11pm, felt a bit sick, and decided to "leave it till the new year". Which new year, though? That's the question.

The first time I put my prices up, I felt sick

Properly sick. I knew the numbers made sense. I knew my costs had gone up. I knew I was worth it (on paper, anyway). And I still couldn't get the words out.

So I did what any sensible business owner would do. I rehearsed it out loud on the dog walk. Over and over. "From the first of the month, my prices will be..." to a field, a hedge and a very confused dog, who I think was hoping it was about treats.

By the time I said it to an actual human, I'd said it about 40 times. And do you know what the client said? "That's fine." That was it. Two words. All that sicky feeling for two words.

If you're feeling sick about it too, you're in good company. Get the dog lead.

Signs your prices are too low

Nod along if:

• You're busier than ever but the bank balance doesn't look any different
• Your costs have gone up (they have, for everyone) but your prices haven't
• You haven't changed your prices in over a year
• Clients say yes instantly, without even a pause
• You quietly resent certain jobs because you know what they're really costing you
• You can't afford to hire the help you need

Two or more? Your prices aren't just low. They're keeping you stuck. No margin means no money for a team, and no team means everything stays on you.

Why it feels so scary (and why it's not really about the money)

In 17 years of franchising and more than 1,000 business owners, I've seen the same thing again and again. The fear of putting prices up is almost never about money. It's about:

• Worrying people will think you're greedy. They won't. Their weekly shop has gone up too. They've noticed.
• Not quite believing you're worth it. That's a confidence problem, not a pricing problem. And it's fixable.
• Fear of the one awkward reply. You'll let one imaginary email, which hasn't been written, from a client who probably won't send it, stop you earning thousands more a year.

How to work out your new price

1. Know your real costs. Include your time, your travel, your software, your admin. Not just the obvious bits.
2. Look at what's changed. Are you more experienced? Faster? Getting better results than a year ago? That's value.
3. Check the market. Not to copy the cheapest, but to know where you sit.
4. Pick a number you'd be slightly nervous to say out loud. If it feels comfortable, it's probably still too low. (See: dog walk.)

Here's the maths that changes minds. Say you have 20 clients paying £500 a month. A 10% increase is £1,000 extra a month, or £12,000 a year. Even if you lost one client, you'd still be £6,500 a year better off, with one less person to look after.

When to tell your clients

Give existing clients 30 to 60 days' notice. If you want the new prices to start in January, November is the time to let people know. It gives them time to plan and it shows respect.

New enquiries? They get the new price from today. They never knew the old one. Nobody needs to know you used to undercharge.

What to say: a simple price increase message

Keep it short, warm and clear. Here's a template you can tweak:

Hi [name],

I wanted to give you plenty of notice that from [date], my prices will be changing to [new price].

This lets me keep delivering the standard of work you're used to, and keep investing in [what improves for them].

Thank you for being a client. I really value working with you, and if you have any questions, just give me a shout.

[Your name]

Notice what's not in there? Three paragraphs of apology. Your energy bill. Your car's MOT. "I'm so sorry but..." You don't need any of it.

What if a client pushes back?

Breathe. It's one conversation. You've got three options:

• Hold your price and say you understand if it's no longer right for them
• Offer a smaller package at a lower price, so they get less, rather than you earning less
• Agree a later start date for a long-standing client, if you want to

What you don't do is drop the new price for everyone because one person grumbled. And honestly? The clients who leave over a fair price rise are often the ones costing you the most time.

The bigger picture

When Dawn came to me, her care business had stalled and she was doing far too much herself. Pricing was one part of the work we did together, alongside strategy, marketing and her team. Her turnover is now up 60% year on year, she's got a manager running the team, and she works normal hours.

Your prices pay for the help that gets you out of the weeds. Undercharge, and you stay stuck doing everything yourself.

Frequently asked questions

How much should I put my prices up by?

Many small businesses raise prices by 5% to 15% at a time, but it depends on how long it's been and how far behind your costs you are. If you haven't raised them in years, you may need a bigger jump, possibly in two stages.

How much notice should I give clients about a price increase?

Thirty to 60 days is fair for most service businesses. Check any contracts you have, as some set out a notice period.

Should I apologise for putting my prices up?

No. Be clear and kind, and thank clients for their business. Apologising makes it sound like you've done something wrong. You haven't.

Will I lose clients if I raise my prices?

You might lose one or two, but most owners lose far fewer than they expect. And the extra income often more than covers it.

When is the best time to raise prices?

January is a natural point, as people expect changes in a new year. That means telling existing clients in November or early December.

Need a hand with it?

If you've been sitting on a price rise for months, this is exactly the kind of thing we sort in a Power Hour. One hour, your numbers, your new price, and the message written before you leave the call. No dog required, though they're welcome.

Or book a free Cuppa & a Natter and tell me what's stopping you.

Not sure what else is holding the business back? Take the free Owner Trap quiz.

You're worth more than you're charging. Let's fix that before January.

Michelle x