How to Raise Your Prices Without Losing Customers: 5 Letters You Can Copy (UK 2026)

You have not put your prices up for two years. In that time the minimum wage has gone up twice, your materials cost more and the van costs more to run. You know the letter needs writing. You also know exactly which three customers will complain, so the letter stays unwritten and you quietly earn less every month.

The fear is bigger than the risk, and there is a sum that proves it. This guide shows how to raise your prices without losing customers: the maths of how many you can afford to lose, the rules on when a price can change, how much notice to give, and five letters you can copy tonight. It is written for UK tradespeople and freelancers, with figures checked on 4 October 2026.

How we checked this guide

1. Official figures for costs. Inflation is from the Office for National Statistics, wage rates from GOV.UK and material prices from the government's building materials statistics.

2. Consumer law from the source. The rules on changing a price come from GOV.UK guidance on fair contract terms and from Citizens Advice.

3. Maths you can check. The break-even sum is standard pricing arithmetic, shown with the working.

4. No invented statistics. We could not find reliable UK data on how many customers leave after a price rise, so there is none here.

Why 2026 is the year to do it

Your costs have moved whether or not your prices have:

• Prices in general. The Consumer Prices Index rose by 3.1% in the 12 months to August 2026.

• Wages. The National Living Wage rose to £12.71 an hour in April 2026, up from £12.21. If you employ anyone, or compete with firms that do, that sets the floor.

• Materials. The government's building materials index was 5.9% higher in July 2026 than a year earlier.

• Employment costs. The Federation of Small Businesses estimated that a small firm with nine staff on the National Living Wage would see its annual employment bill rise by £25,850 between January 2025 and April 2026.

A price that has not changed in two years is a price that has been cut. Customers know costs are rising. Most are waiting to see whether you do.

The sum: how many customers can you afford to lose?

Before you decide whether to raise prices, work out what would have to go wrong for it to be a mistake.

The formula is simple. Take the price rise as a percentage, and divide it by your gross margin plus the price rise. The answer is the share of work you could lose and still make the same profit.

• A 10% rise at a 50% margin: 10 divided by 60 is 16.7%. You would have to lose more than one customer in six to be worse off.

• A 5% rise at a 50% margin: 5 divided by 55 is 9.1%. About one in eleven.

• A 10% rise at a 30% margin: 10 divided by 40 is 25%. One in four.

Gross margin here means what is left of the price after the direct costs of the job, such as materials. The lower your margin, the more a price rise helps, which is why trades with heavy material costs gain most.

Now think about your own customers. Would one in six really leave over 10%? The ones who would are usually the ones who haggle, pay late and ring at nine at night. Losing them and keeping your profit is not a loss.

When you can and cannot change a price

The law depends on what has already been agreed.

Two points sit behind the table. First, Citizens Advice is clear that an accepted quote is a fixed price: you can charge more only if the customer asks for extra work, agrees to extra work you say is needed, or you made a genuine mistake in the price. Second, GOV.UK's guidance on fair contract terms says a term letting you change the price is unlikely to be fair if it is a "blank cheque". A fair one warns the customer in good time and gives them a genuine right to leave without penalty.

How much, and how often

• Small and regular beats large and rare. A rise each year that tracks your costs is easier to accept than 20% after four years of nothing.

• Use a number you can explain. "My materials are up about 6% and wages 4%" is a reason. "Everything is going up" is not.

• Round sensibly. £95 to £100 is one conversation. £95 to £99.75 is an argument.

• Raise new customers first. Change the price list today. Existing customers get notice.

• Pick a date. The start of a quarter or the anniversary of when they started is easy to remember and easy to defend.

If you are not sure where your rate should sit, the trade rates by UK city guide and the freelance day rates guide show what others charge.

The 5 price increase letters

Each one is short on purpose. Say the new price, the date and one honest reason. Do not apologise, and do not explain for three paragraphs.

Letter 1: regular domestic customers

Hi Mrs Shah, a quick note about prices. From 1 December my hourly rate goes from £18 to £19.50. It is my first increase in two years, and it covers the rise in fuel, insurance and materials since then. Your Tuesday slot stays exactly as it is. If you would like to talk it through, just reply to this message. Thank you for your custom, Jamie.

Letter 2: a trade's annual rate change

Dear customer, from 1 January 2027 my day rate will be £340, up from £320, and my minimum call-out will be £75. Materials continue to be charged at cost with receipts. Any job already quoted and accepted stays at the quoted price. I am booking January now, so if you have work planned, let me know and I will hold a date for you. Jamie Carter, Carter Electrical.

Letter 3: a business client on a retainer

Hi Priya, as our agreement comes up for renewal on 1 February, I am updating my monthly fee from £1,200 to £1,290, an increase of 7.5%. This is my first change since we started in 2024 and reflects higher costs over that time. The scope stays the same: up to 30 hours a month and replies within one working day. The current rate applies until 31 January. If you would like to adjust the scope instead, I am happy to talk before then. Sam.

Letter 4: a quote that has lapsed

Hi Mr Evans, thanks for coming back to me about the bathroom. The quote I sent in June was valid for 30 days, and since then the tiles and the shower valve have gone up. The updated price is £4,180, which is £240 more than before, and I have attached the new quote. It is valid until 31 October. If you would like to keep to the original budget, I can suggest a different tile. Jamie.

Letter 5: a reply to a customer who pushes back

Thanks for telling me, and I do understand. I have kept the price the same for two years while my own costs went up, and this change is what lets me keep doing the job properly. The new rate starts on 1 December. If that does not work for you, I am sorry to lose you, and I can finish the visits already booked at the current price. Jamie.

What not to say

• "Unfortunately" and "I am afraid". You are stating a price, not delivering bad news.

• "Due to circumstances beyond our control". Give the actual reason in plain words.

• A percentage with no pounds. "7.5%" means little. "£1,200 to £1,290" is clear.

• A hidden change. Never let the first sign of a new price be the invoice.

• An open door to negotiate. Offer to adjust the scope, not the rate.

After the letter

Most customers reply "no problem" or do not reply at all. A few ask a question. One or two may leave. That is the sum from earlier doing its work. Keep a note of who said what, because it tells you who values the work, and put next year's review date in the diary now.

A price rise is also the right moment to give the customers who stay something to notice: a job record with photos, a reminder before the next service is due, a faster reply. The guide to getting repeat work has the scripts. And if a higher turnover takes you near a tax threshold, the Making Tax Digital guide and the sole trader guide explain what changes.

How an AI agent helps you raise prices

ChatGPT, Claude, Gemini, Microsoft Copilot, Manus and Meta's Muse can all polish a letter. An agent can do the whole exercise with you.

• Runs the numbers. Give it last year's jobs and costs and ask for your margin, and for the break-even on a 5% and a 10% rise.

• Writes each letter in your voice. With the customer's name, their current price, the new one and the date.

• Updates everything else. Price list, quote template, website and Google Business Profile, so the old price does not linger anywhere.

• Sends you customers at today's prices. On Jobbit Pro customers and Jobbit's agent send briefed, scoped jobs to professionals, and the customer's payment is held in escrow before you start. A fee applies only when a paid job completes.

• Free agent credits from the first day. A new account gets a 300-credit sign-up bonus on top of 100 free credits every day, with no card.

• A website when your profile is complete. Finish your Jobbit Pro profile and you get a website for your services with an enquiry form, showing your current prices.

Your plan for this week

• Day 1: do the sum. Work out your margin and how many customers you could lose at 5% and at 10%.

• Day 2: change the price list. New customers pay the new rate from today.

• Day 3: sort your customers. Accepted quotes stay as they are. Regulars and retainers get a letter.

• Day 4: send the letters. Same day, same wording, four weeks' notice.

• Day 5: fix the future. Add a validity date to every quote and a yearly review to your terms. Then create your Jobbit Pro profile and complete it to unlock your website.

Frequently asked questions

How do I tell customers about a price increase?

In writing, in a short message: the new price in pounds, the date it starts and one honest reason. Give about four weeks' notice, do not apologise, and tell them who to contact with questions.

How much notice should I give for a price increase in the UK?

For regular customers with no contract, four weeks is fair. If there is a contract, follow its notice clause. For consumers on a plan that renews, give enough time for them to cancel before the new price applies.

Can I increase the price after a quote has been accepted?

No. An accepted quote is a fixed price. You can charge more only if the customer asks for extra work, agrees to extra work you say is needed, or you made a genuine mistake in the price. That is why quotes need a validity date.

How much should I raise my prices by?

Enough to cover what your costs have risen by, and little enough to explain in one sentence. In 2026 general prices are up about 3%, the National Living Wage about 4% and building materials about 6% over a year.

Will I lose customers if I raise my prices?

Some may leave, and the maths usually still works. At a 50% margin, a 10% rise leaves you better off unless more than one customer in six goes.

How often should I raise my prices?

Once a year, on a date customers can expect. A small regular rise is easier to accept than a large one after years of nothing.

Where can I find customers who pay a fair rate?

Set your price list at today's rates and make it easy to find. Create a free Jobbit Pro profile: 300 free agent credits on sign-up plus 100 a day, a website when your profile is complete, payment held in escrow before work starts, and no fee until a paid job completes.