# 14.3, When to raise your prices (and how to tell existing customers)
You should be nudging your prices up regularly, not waiting until you're desperate. Think once a year as a baseline, more often if your costs jump or you're booked solid.
How often do trades actually raise prices?
Most trades don't move prices every month, they do it in steps:
- Industry surveys show a lot of UK trades are now planning annual increases, often timed to the new tax year (April) or calendar year (January).
- A 2025–26 "State of the Trades" report found 81% of tradespeople planned to increase prices in 2026, with average day\u2011rate rises of about 9.5%, after a couple of high\u2011inflation years and big jumps in materials.
- Outside those catch\u2011up years, tender price/inflation forecasts for construction and services are more in the 3–5% per year range, which lines up with a steady annual price bump once you're at a sensible starting level.
If you haven't raised your prices for 2–3 years, you're almost certainly working for less in real terms than when you started.
What should trigger a price increase?
You don't need a "perfect" reason, but you do need a real one. Common triggers:
Inflation and running costs Services inflation has been running in the low\u2011to\u2011mid single digits in recent years (roughly 3–5% a year for many services). If you don't at least track that over time, your profit quietly disappears.
Materials and merchant prices Timber, plaster, copper, roofing materials and fixings have all seen noticeable rises since 2020, with some years seeing high single\u2011digit or more increases. If your merchants put prices up, your labour rate and/or materials markup need to follow.
Experience and demand If you're now faster, doing bigger jobs, and fixing other people's mistakes – that's worth more. The Jackson Woodturners survey found many trades are fully booked months ahead, and 35% were booked until at least March 2026; that kind of demand is a clear sign prices can go up.
Overloaded diary If you're booked out more than 6–8 weeks with no gaps, that's the market telling you you're too cheap. It's better to charge properly and lose the odd price\u2011shocked customer than work yourself into the ground.
A simple rule: if your costs go up, or you're booked solid, your prices should move.
What's a "normal" percentage increase?
For most trades, in a "steady" year, you're looking at something like:
- 3–5% per year as a normal, inflation\u2011tracking rise once you're already at a healthy rate. That matches general construction and services price inflation forecasts.
- 5–10% per year when you're catching up from being too cheap, or after a period of sharp cost increases (energy, materials, wage pressures). Surveys of UK trades show average planned day\u2011rate increases around 9–10% for 2026, after a run of high costs.
- Big jumps (15–20%+) can be justified if you've been undercharging for years or have moved up a level (e.g. from small jobs to full bathrooms/extensions), but they need careful explaining.
You don't have to do it all in one go. Two smaller rises six months apart are often easier for repeat customers to swallow than one huge leap.
How to tell existing customers
Raising prices is mainly about tone and timing. You want to sound steady and fair, not apologetic or nervous.
General approach
- Give notice: For ongoing or regular customers (landlords, maintenance contracts, managing agents), give 4–8 weeks' notice of a new rate.
- Be specific: State the old rate, the new rate, and when it starts.
- Give a reason: Tie it to rising costs, inflation, experience or demand – whatever is genuinely true for you.
- Don't over\u2011explain: One or two clear reasons is enough. You're informing, not begging.
Example wording for a repeat domestic customer
"Hi [Name],
Just a quick note to say that from 1 May my day rate for ongoing work will be \u00a3280 instead of \u00a3260.
Over the last couple of years my material, fuel and insurance costs have all gone up, and I've been holding my rates down as long as I could. This small increase means I can keep doing the same standard of work and actually cover my costs.
I'll honour any quotes I've already given you, this only applies to new work booked after 1 May.
Thanks for sticking with me, [Your name]"
Example wording for a landlord/agent you do regular work for
"Hi [Name],
From 1 July my standard labour rate will increase by 7% – from \u00a3220 to \u00a3235 per day – to reflect higher running costs and current market rates. This brings me in line with what similar trades are charging locally.
Any existing quotes will be honoured at the agreed price; the new rate will only apply to new instructions from that date.
If you'd like to review how we handle call\u2011outs or regular work on a fixed rate, I'm happy to chat.
[Your name]"
Key points baked in there:
- Clear date
- Clear numbers
- Simple reason
- Reassurance that existing quotes are safe
Practical tips so it doesn't feel awkward
- Do it at a natural point: Start of the tax year, calendar year, or when you renew insurance or merchant accounts. "My costs have gone up this year" is easier to say then.
- Anchor it to the market: If you know typical local day rates are going up by roughly 5–10%, say so. You're not the only one raising prices.
- Separate price from pride: You're not putting your prices up because you're greedy; you're doing it so you can stay in business, pay yourself a fair wage, and keep turning up.
- If someone kicks off, you can calmly say: "I totally get you've got a budget. This is what I need to charge to do the job properly. If it doesn't work this time, no hard feelings."
What to do next
For your own jobs:
- Read: 14.2 – How to price your first job without underselling yourself (check your day rate is right before you raise it)
- Read: 14.4 – Why you should never be the cheapest quote
- Read: 14.5 – How to explain your price when they've had a cheaper quote
- Decide on a standard annual review point (e.g. every April) and diary it so price rises are normal, not emergencies.
- Check your day rate from 14.2 against your actual hours and costs for the last year – if you've been working longer for less, that's your cue to increase.
- Draft one message now for regular customers, so when you do raise prices you're not writing it at 11pm the night before.
Sources (UK)
- Jackson Woodturners / State of the Trades 2025–26 survey – 81% of tradespeople planning price increases in 2026, average 9.5% day\u2011rate rise, 35% booked until March 2026.
- ONS Consumer Price Index (CPI) – services inflation tracking, low\u2011to\u2011mid single digits in recent years.
- RICS / BCIS tender price forecasts – construction price inflation projections of 3–5% per year in steady conditions.
- ONS Annual Survey of Hours and Earnings (ASHE) – earnings data for construction and building trades.
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