5 questions every small business should answer before raising prices
A 10% price increase to existing customers is almost always net-positive — but only if you know your margins, your repeat rate, and how to announce it. Five questions get you there.
Do this
- What's your actual gross margin per job today? (Not your gut — pull last month's numbers.)
- What percent of revenue comes from repeat customers? They tolerate price moves better than new ones.
- When did you last raise prices? If it's been more than 18 months, you're already behind inflation.
- How will you announce it — by email, in person, on the next invoice? Pick one and write the wording first.
- What's the win condition? "We can lose up to X% of customers and still come out ahead."
Pre-Increase Checklist
- Pull last month's numbers — calculate actual gross margin per job
- List your top 10 customers and what percent of revenue they drive
- Find the date of your last price change. More than 18 months? You're behind inflation.
- Decide the channel: email, in-person, or on the next invoice
- Draft the announcement wording before you commit to a date
- Set your win condition ("X% churn would still leave us ahead")
- Pick the effective date — at least 30 days out for existing customers
