When and how to raise your prices as a contractor
Many small contractors wait too long. A planned increase is easier than a forced one.
- Know your real costs. Include labor, vehicle, insurance, software and overhead.
- Check your job profit. Look at margin by job type.
- Watch your schedule. A full calendar with no pushback is a hint.
- Set a date and give notice. Tell existing customers ahead of time.
- Keep the message short. State the new rate, the date and thank them.
- Honor open quotes. Finish quotes already sent at their price.
Common questions
How much should I raise prices?
Base it on your costs and margin, not on a fixed percentage.
Will I lose customers?
Some price-shoppers may leave. Track your numbers afterwards.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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