How to raise your prices without losing customers
By SendPay Business · · 2 min read
Costs go up every year. If your prices don't, you're taking a pay cut. Here's how to raise them calmly and keep your customers.
Signs it's time
You're fully booked, your costs have risen, you haven't changed prices in over a year, or customers never push back on a quote. Any one of these is a good reason.
Work out the new price first
Start from what you need to earn and what the work costs you, not from what feels comfortable to ask. Check the new price still gives a healthy margin after card fees and VAT.
Tell customers the right way
A calm, short message works best.
- Give notice. Check your contract first; if it's silent, 30 days is a common courtesy, and more for big clients.
- Say the new price and the start date plainly.
- Give one honest reason in one sentence, if you want to.
- Honour work already booked at the old price.
- Thank them, and invite questions.
New customers first
The easiest place to start is new customers: they only ever see the new price. Existing clients can move over a little later.
If someone pushes back
Listen, and offer a smaller package rather than a discount. Some customers may leave, and that is often fine if the ones who stay pay what the work is worth.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Is there a template I can copy?
Yes. The free price increase letter tool gives a friendly note, a formal letter and a short email, filled in with your details.
Open the letter templates →How much should I raise prices by?
Enough to cover your cost increases and hit your income target. Work it out from your own numbers with the hourly rate or profit margin calculators rather than guessing.
Should I apologise for raising prices?
No. A clear, polite notice is enough. Long apologies make it sound like you don't believe the new price is fair.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.