You haven’t raised your prices in two years. Your material costs are up 15%. Your insurance went up. Gas is more expensive. You’re working harder than ever and somehow making less money per job.

You know you need to raise prices. But every time you think about it, a voice in your head says: “What if I lose all my customers?”

Here’s the truth: you’ll lose far more by staying too cheap than by charging what you’re worth.

Signs It’s Time to Raise Your Prices

If any of these sound familiar, you’re overdue:

  • You’re booked 3-4 weeks out consistently. If you can’t take new work for a month, demand is outpacing your capacity. That’s the market telling you to charge more.
  • Your costs have gone up but your prices haven’t. Materials, fuel, insurance, and labor all get more expensive every year. If your prices don’t keep pace, your margins shrink.
  • You’re winning almost every bid. A healthy close rate is 30-50%. If you’re closing 80%+ of your quotes, you’re priced too low.
  • You dread certain types of jobs. If a job category doesn’t excite you anymore, it’s probably because the money isn’t worth the effort at your current rate.
  • Competitors are charging more. If similar contractors in your area charge 20-30% more and they’re still busy, you’re underpriced.

How Much Should You Raise?

The answer depends on your situation, but here are some guidelines:

Cost-Based Increase

Calculate your actual cost increases since your last price change. If materials are up 12%, insurance up 8%, and fuel up 15%, a 10-12% price increase isn’t aggressive — it’s just keeping up.

Market-Based Increase

Get quotes from 3-5 competitors for similar work. If you’re 25% below the average, don’t jump 25% overnight — but a 10-15% increase puts you closer to market rate while still being competitive.

Value-Based Increase

This is the most powerful approach. If you provide faster response times, better communication, cleaner job sites, and more professional service than your competitors, you should charge more. Period.

The contractor who shows up on time, sends photo updates, and has a customer portal where clients can track their job is worth more than the one who disappears for three days and sends a handwritten invoice.

How to Roll It Out

New Customers First

The easiest price increase is the one no one notices. Start by quoting new customers at your new rate immediately. They have no reference point — they don’t know what you charged last year. This lets you test the market’s response without risking existing relationships.

Existing Customers With Notice

For repeat customers, give 30 days’ notice. Be direct and honest:

“Hey [name], I wanted to give you a heads up that our rates are going up about 10% starting July 1st. Our material and operating costs have increased significantly over the past year, and this adjustment lets us keep delivering the quality you’re used to. You’re still locked in at current rates for any work scheduled before then.”

Notice what this message does:

  • It’s honest about the reason (costs went up)
  • It’s specific about the amount (10%)
  • It gives them a deadline that creates urgency
  • It reaffirms your commitment to quality

Phase It In Over 60-90 Days

Don’t wake up Monday and double your prices. A gradual rollout — new customers immediately, existing customers with notice, annual contracts at renewal — gives everyone time to adjust.

Handling the Pushback

Some customers will push back. That’s normal. Here’s how to handle it:

“Your competitor is cheaper.”

“They might be. We focus on [speed / quality / reliability / communication]. If price is the main factor, I understand — but I’d encourage you to compare the full experience, not just the number on the quote.”

Don’t badmouth competitors. Just confidently state what makes you different.

”You were cheaper last year.”

“You’re right, and I probably should have adjusted sooner. My costs have gone up across the board — materials, insurance, fuel — and this increase keeps us sustainable so I can keep serving you at the same quality level."

"Can you give me the old price?”

Be careful here. If you cave every time someone asks, you haven’t actually raised your prices. It’s okay to offer a small loyalty discount for long-term customers, but don’t undo the increase entirely.

Track the Impact

After raising prices, watch two numbers:

  1. Close rate: Did it drop? A small dip (5-10%) is normal and expected. A 30%+ drop means you went too far, too fast.
  2. Revenue per job: Even if you close fewer jobs, your revenue per job should increase enough to offset the lost volume.

If you were closing 10 jobs a month at $2,000 ($20,000/month) and now you’re closing 8 jobs at $2,400 ($19,200/month), you’re working 20% less for roughly the same revenue. And your profit margins are better because your fixed costs didn’t change.

This is where job profitability tracking becomes essential. If you’re not tracking what each job actually costs you — labor, materials, drive time, overhead — you’re guessing at your margins. CrewRivet’s job costing features show you the real profit on every job, so you can price with confidence instead of gut feel.

The Annual Price Review

Make price increases a scheduled event, not a crisis response. Every January, review:

  • Your costs vs. last year
  • Your close rate and booking volume
  • Competitor pricing
  • Inflation rate

A 3-5% annual increase rarely causes pushback and keeps your margins healthy over time. It’s the contractors who freeze prices for five years and then need a 25% jump who lose customers.

The Real Risk

The biggest risk isn’t raising prices. It’s not raising them. Underpriced contractors burn out, cut corners to save money, and eventually close up shop. Charging what you’re worth isn’t greedy — it’s how you build a business that lasts.

Know your numbers before you set your prices. Try CrewRivet free for 60 days — job costing, profitability tracking, and invoicing that shows you exactly what each job earns.