How to Price Your Services Without Losing Customers

If you haven't raised prices in a while, you've probably given yourself a pay cut. Materials, fuel, insurance and wages have all gone up. Here's a simple way to check your numbers.

Start With Your Hourly Cost

Add up a year of overhead: vehicles, insurance, tools, software, rent, phone and your own salary. Divide by the billable hours you actually work, not the hours you're on the clock. That's your break-even rate before materials.

Add Margin on Purpose

Decide what profit you need to reinvest, cover slow seasons and grow. Many healthy service businesses aim for a meaningful net margin after paying the owner a fair wage.

Compare With Your Market

Look at what reputable local competitors charge. If you're far below them, customers often read that as lower quality, not a better deal.

Raise Prices the Right Way

• Give existing customers notice
• Explain what's changed (costs, quality, warranty)
• Offer options at different price points
• Train your team to say the price with confidence