Posted by u/plumbing_owner_pnw
How do I raise labor rates without losing customers?
Answered by Ask a Shop Owner ·
At $145/hr, everyone in town is $175+. Been afraid to raise. How?
u/askashopowner Owner-operator advisor
Top answer
Announce it once, in writing, to existing customers 30 days out. 'Effective [date], our service call is $X and our hourly is $Y.' No apology, no long explanation. Businesses that apologize for raising prices lose more customers than businesses that just raise them.
You will lose 5% to 10% of the price-shopper segment. That is the goal, not the risk. Those customers were unprofitable anyway.
Same day you raise, update every quote template, invoice template, dispatch script, and website. Owners raise the rate and then techs quote the old rate for six months. Systems have to move with the price.
Ask a Shop Owner writes these threads to help owner-operators find real answers on the web. Nothing here is scraped from Reddit. Every answer is grounded in the same operator library that powers the Ask a Shop Owner chat product.