The awkward truth about putting up prices

Let us talk about pricing. Specifically, the tricky and uncomfortable part that we all find daunting: putting your fees up.

For most small business owners, raising prices can feel a bit like breaking a promise. You have loyal customers. You are proud of the value you offer. The last thing you want is to make people feel squeezed, annoyed or surprised. So what often happens? We undercharge by not increasing our fees. Or we hold off, telling ourselves that now’s not the time, and then we’ve left it too long. Or we end up doing it reactively, when the pressure on profit margins gets too much and the numbers stop adding up.

But here is the thing: as a responsible business owner, you need to keep a watchful eye on your pricing. Not just for the sake of your profits, but for the long-term sustainability and health of your business.

Why pricing matters

Pricing is not just about covering your costs. It is about building a business that supports you, your team (if you have one), your goals, and your future. Inflation does not take a year off. Taxes and NI increase. Fuel costs go up. So do materials, subscriptions, insurance, software, even tea bags. If you are not adjusting what you charge at least a little each year, your margins are shrinking quietly and consistently.

Usually, it should not be about making huge jumps. There is quiet power in small price rises. In most cases, a gentle annual increase of five to ten percent will be enough to keep pace with the rising costs of running a business. Doing it gradually and regularly can help you keep on top of things. This means that you can avoid the need for a big, sudden price hike that may feel like a shock to your customers, and stressful for you to navigate.

A couple of real life examples

Let me tell you about two businesses I use regularly and really value.

Firstly, the chimney sweep. He is friendly, reliable, and does a great job. Last time he came, I asked, “How much is it now?”

“Still £60,” he said. Same as last year.

And yet, his fuel costs are definitely higher. The cost of keeping his van on the road has gone up. His time and expertise is just as valuable, if not more so.

Then there is the company I call when the washing machine or dishwasher breaks down. They have charged a £50 call out fee for as long as I have been using them, which is about four years now. Again, it’s a brilliant service, quick to respond, honest, and practical. I do not want them to stop doing what they do. But I cannot help wondering how long they can keep shouldering the rising costs.

These are not criticisms. They are simply observations. And they come from someone who genuinely wants these businesses to thrive, because they bring valuable skills and services to their customers. Consequently, when your profit gets squeezed too tightly, you don’t just lose income. You lose resilience, and the buffer that helps you weather a quiet month, invest in new ideas or training, or simply take a break when you need one.

Without that financial breathing room, everything can start to feel harder – decisions, growth, stress levels and even staying motivated. Over time, it doesn’t just affect how your business runs, it can affect whether the business continues to be viable at all.

So how do you know when it is time?

Here are a few questions to ask yourself:

– Have your costs increased in the last year?
– Has your pricing changed to reflect that?
– Are you still making the profit you need to live and grow your business? Are you factoring in having enough of a buffer for the unexpected?
– When was the last time you evaluated your pricing structure?

If the answers are making you shift a little in your seat, it might be time for a review. You do not need to completely overhaul everything. However, planning a gentle, regular increase that is communicated clearly and confidently can make all the difference in keeping your business healthy and sustainable.

A final thought

Raising your prices does not make you greedy; it makes you responsible. It’s reasonable, good business practice. And it’s also about being fair – fair to yourself, to your expertise, to the work you put in, and to the future of your business. You are not just selling a service. You are building something that needs to support you, just as you support your clients.

If you would like a fresh perspective on your pricing or want to understand your margins more clearly, we are always happy to help. Just get in touch.