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![]() Don’t be afraid to justify the price increase From your office staff to contractors or employees, have everyone on board before notifying customers to avoid any issues in the future with inconsistent information. When all of your staff members are on the same page, it ensures consistency in quotes and invoices as well as customer service inquiries from clients. Inform staff of price changesīefore you tell clients about a price change, you need to make sure that you communicate it to your staff first. The more information you have about your price increase, the easier it will be to communicate to staff members and clients. When will the price increase take effect?.Is it a general price increase, or only applicable to certain services?.Will the price increase apply to existing clients or only to new clients?.Write down your plan and make sure every team member is following the same price increase as you: Document the detailsĬhanging prices inconsistently, or using different terms for different clients, can sabotage client trust. #Email a nice reminder about compensation owed to you free#This is easier for customers to digest, and more inline with how other services (ex: Netflix) raise their prices.įREE TOOL: Try our free service price calculator 2. If you increase prices regularly, each increase will be incremental (2-4%) instead of having to raise prices 25% all at once. You could also increase prices on customer anniversaries, or when regional taxes increase. To accommodate this, you could plan to increase your prices on a regular schedule, such as every 12 or 18 months. For example, annual inflation in the U.S. Usually, business cost increases are predictable. Here are some best practices to keep in mind for increasing prices for your home service business. Once you determine that raising your prices is the right path for your business, you need to ensure that you communicate the change to your clients properly. And it’s not bragging - you’re explaining your value” “Explaining why you are charging what you’re charging gives you a leg up. READ MORE: Appointment reminder templates to stop no-shows If there’s a specific competitor that you want to aim for, raising your prices to better match theirs puts you in a more strategic position to attract their customers. You want to target new competitorsĪs your service business grows, your competitors will change based on the types of clients you target, the services you offer, and the niches you focus on. READ MORE: What to do when customer say your price is too high 5. ![]() Raising prices can help you to filter out value-focused customers so that you can target clients who are interested in bigger or longer-term jobs. And if they’re going to leave over a small price increase, chances are you’d have lost them to a lowballing competitor anyway. These customers can actually cost you more than they’re worth. When you price low, you tend to attract customers who value savings above things like quality or workmanship. If you are looking to grow your business, raising prices may be the best way to fund your expansion. Price increases can also be used to help you reach specific business goals, like hiring a certain number of new employees or expanding to a new area. Instead of playing it safe and pricing low (which, ironically, is the riskiest thing you can do if you want to stay in business), learn effective pricing strategies that will help you stay competitive and profitable. Lowballing doesn’t help you, your clients, or your industry. But by the time you’re booking jobs regularly, you need to increase your prices to come up to market value. You might need to attract early customers or build up your confidence. It’s normal to price low when you’re just starting your service business. #Email a nice reminder about compensation owed to you how to#Read on to understand when to raise your prices, how to do it, and get a price increase letter template to send to your clients. ![]() When you’re ready to increase your prices, you need a plan to do it right. And those who do leave will free up your schedule for higher-paying clients. Most people understand price increases and value your services enough to pay the difference. If you’re worried about customers leaving because of a price increase - don’t be. →Want to join the conversation? Visit the Jobber Entrepreneurship Group. And doing so can level-up your business and your life. The good news is, increasing your prices is possible. Even for experienced business owners who’ve been working hard for years. Unfortunately, undercharging for home services is extremely common. Raising your prices allows you to hire more skilled labor, pay yourself and your staff bigger salaries, and work on more exciting jobs with clients you enjoy. Eventually, every service-based business needs to increase prices. ![]()
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