Tile prices went up, so did fuel, your insurance renewed a few points higher, and your hourly rate has not moved in three years. The result: you work as much, sometimes more, for less. Raising your prices is not about nerve; it is about arithmetic. Here is how to tell whether it is time, how much to raise, and how to tell clients without losing the good ones.
Signs it is time
Some signs are hard to miss:
- you turn work down because you are booked for months;
- almost every quote is accepted, with no negotiation;
- your cash stays tight even though your diary is full;
- your main materials cost clearly more than at your last review;
- your real hourly rate, after all costs, is below what you aimed for.
A very high acceptance rate is not only good news. It often means you are cheaper than clients are willing to pay.
Calculate the rise, do not guess it
Start from your numbers:
- 1Redo your hourly rate with today's costs: insurance, van, fuel, tools, the pay you want. The method is in our guide to setting an hourly rate.
- 2Compare it with the rate you charge today.
- 3Update your material prices and check your markup: see our article on materials markup.
Example: you charge 42 an hour. Recalculated with current costs, it should be 47. The rise needed is about 12%, and it earns you nothing more than before: it is catching up, not getting rich.
New quotes, regular clients, running contracts
The increase does not apply the same way to everyone.
| Situation | How the rise applies |
|---|---|
| New quote | Immediately, at the new price |
| Quote sent, not yet signed | Held until its validity ends |
| Signed quote | Agreed price, unchanged |
| Regular client | New price announced in advance |
| Maintenance contract | As the contract's review clause says |
A signed quote binds both sides to the agreed price. That is one more reason to give quotes a reasonable validity period when material prices move quickly.
Telling regular clients
A short, clear, dated message is enough. It states:
- the date the new prices apply, with reasonable notice;
- the main reason, in one sentence: materials, insurance, travel;
- what does not change: the quality of the work, your timescales, your usual terms.
Do not apologise at length. A tradesperson who calmly explains higher costs is understood by most clients; they see the same rises in their own lives.
Accept losing a few clients
A price rise will send some clients elsewhere, usually those who chose you only on price. They are often the jobs that haggle hardest, pay latest and earn least. The time you free up goes to serving the others better, or to taking better-paid work.
If your diary empties noticeably after the rise, adjust. More often the opposite happens: the diary stays full, and every hour earns more.
Review prices regularly
The best way to avoid a painful jump is not to wait three years. A yearly review on a fixed date allows small adjustments clients accept easily. Update the prices saved in your software so every new quote uses the right rates automatically.
Summary
| Question | Answer |
|---|---|
| When? | When costs rise or you are fully booked |
| How much? | From your recalculated hourly rate |
| For whom? | New quotes now, regulars with notice |
| How often? | At least once a year |