Price increase calculator
These starting numbers are an example. Use the price and job costs of a typical job. The result assumes your costs stay the same if you do fewer jobs, which is a fair rule of thumb for crew work you can schedule down.
How to read the answer
Say the calculator tells you that you can lose 20% of your jobs. That means if you raise the price and fewer than one in five customers walk away, you still earn at least as much money as before, and you do less work to earn it. If you expect fewer to leave than that, the raise is a good trade.
The thinner your margin today, the more a raise helps. A job that leaves little after costs gains a lot from a small price increase, which is why underpriced companies see the biggest benefit. If the job loses money today, the result shows “n/a”: losing some of those customers is good news, not bad news.
Before you raise prices
- Check the signs you are underpricing, so you raise the right jobs first.
- Raise the jobs that lose money or barely earn before the ones that earn well. Your job costing tells you which they are.
- Read how to raise prices without losing customers for wording, timing and what to say when someone pushes back.
What the calculator leaves out
It treats every job as the same size. In real life some customers are far more valuable than others, because they book often or send you referrals. Look at your best customers before you decide, and test a raise on new quotes first.
Questions owners ask
How do I know if a price increase is worth it?
Work out your profit per job before and after the raise. The raise pays off as long as you lose fewer jobs than (price times raise) divided by (new price minus job costs). The calculator above shows this number.
How much should I raise my prices?
Start from the real cost of the job and the margin you need, not from a fixed percentage. Jobs that lose money or barely earn need a bigger raise than jobs that already earn well.
Will I lose customers if I raise prices?
You may lose a few, usually the most price-sensitive ones. The calculator shows how many you can lose before you are worse off, and it is often more than owners expect.
Does this work for recurring customers?
Yes, use the price and costs of one visit. For contracts, give the notice your agreement requires and consider a smaller step if the customer has been loyal for years.