Quick question: when did you last change your prices?
If you have to scroll back through a few years of invoices to find out, this one's for you. January is the most natural moment of the year to put prices up. Clients expect change in a new year, budgets get reset and nobody's surprised to see a new rate card. But it only works if you start the conversation before Christmas, not on 2 January.
So here's how to work out your new number, when to tell people, exactly what to say and how to handle the replies.
You're in good company
If raising your prices feels like a big, scary thing only you are doing, it isn't.
In the British Chambers of Commerce's Quarterly Economic Survey for the end of 2025, 52% of firms said they expected to raise their prices in the following three months, up from 44% the quarter before. That survey had 4,644 respondents, and the vast majority were small and medium-sized businesses. Labour costs were the most common pressure firms named.
Costs aren't standing still in 2027 either. The National Living Wage for workers aged 21 and over rises by 3.9% to £13.21 an hour from April 2027. Even if you don't employ anyone, your suppliers, your venue, your printer and your cleaner probably do.
Your clients run businesses and households too. They know costs go up. What they don't like is surprises.
Work out the real number first
Before you decide how much to put your prices up by, look at what you're actually earning.
Take your last three months of work and, for each job or client, write down:
What you charged
How many hours it really took, including the emails, the admin and the "quick favours"
What it cost you to deliver (materials, software, travel, subcontractors)
Then work out what you really earned per hour. For a lot of small business owners, this is the moment the penny drops. The client you think of as your best one turns out to be paying you less per hour than anyone else, because the scope has crept for two years and the price hasn't moved.
Also look at what you've added since you last set your prices. New skills, qualifications, faster turnaround, better tools, more experience. You're not the same business you were when you picked those numbers, so there's no reason your prices should be.
How much should you put your prices up by?
There's no universal right answer, and anyone who gives you one without seeing your numbers is guessing.
What generally works better is smaller, regular rises rather than one huge jump every few years. A modest annual increase feels like normal business. A 40% leap after four years of nothing feels like a shock, even if it's completely justified.
A few ways to think about it:
Keep pace with your costs. At the very least, your prices should rise by as much as your costs have.
Price for the value. If what you do saves a client time or makes them money, your price can reflect that, not just your hours.
Price new and existing clients differently, for now. New enquiries get the new rate from today. Existing clients get notice and a date.
And put an annual price review in your diary, every year, same month. It turns a scary one-off decision into a routine bit of admin.
When to tell your clients
Timing is where most people trip up. They decide in December, panic, and either say nothing or tell everyone on the first invoice of the year. Neither goes down well.
New clients: start quoting the new price now. They've never seen the old one, so there's nothing to explain.
Existing clients: give proper notice. Thirty days is the bare minimum, and 60 to 90 days is kinder for retained or regular clients. For a January rise, that means telling people in November or early December.
Contracts and retainers: check what you've agreed. Some contracts set out how and when prices can change, and you'll need to stick to that. If you're not sure, get advice before you send anything.
Tell your biggest and longest-standing clients personally, with a quick call or a coffee, before the email lands. It shows respect, and it gives them the chance to ask questions out loud.
What to say
Keep it short, clear and confident. Call it what it is: a price increase. Words like "price adjustment" or "rate realignment" just make people squint. Don't over-explain your margins and don't apologise. You're running a business, not asking permission.
Here's a template to make your own:
Subject: My prices for 2027
Hi Sarah,
Thank you for working with me this year. I've really enjoyed [specific project or result].
I wanted to let you know in good time that my prices will change from 1 January 2027. Your monthly retainer will move from £X to £Y.
This reflects rising costs and the extra I've added this year, including [one or two real examples].
Nothing else about how we work together changes. If you'd like to talk it through, or look at the scope so it fits your budget, just reply or give me a ring.
Thanks again,
[Your name]
Swap in your own details and keep it human. A specific, genuine thank you in the first line does more work than any clever wording.
Handling the replies
Here's what usually happens when you send it: most people say "no problem" or don't reply at all. Really.
A few will have questions, and those are useful conversations. Some honest options when someone pushes back:
Offer a choice of scope. "I can keep it at the current price if we drop X." That's not a discount, it's a different piece of work.
Give loyal clients a gentle run-in. For example, the new rate starts in April instead of January for clients who've been with you for years. Be clear it's a one-off and put the date in writing.
Let some go gracefully. Occasionally a client will decide to move on. Thank them, hand over properly and leave the door open. That's often the client who was costing you the most hours for the least money, and the space they leave is space for work that pays properly.
What you shouldn't do is cave the moment one person grumbles. Decide in advance where you're flexible and where you aren't.
Turn it into a sales conversation
A price rise doesn't have to be awkward news. Done well, it's one of the best reasons you'll get all year to talk to every client.
Use the call to look back at what you've achieved together and ask what's coming up for them next year. You'll often find new work hiding in that conversation. You can also give an honest reason to commit early: anyone who books a project before 1 January gets this year's price. That's not a gimmick, it's just true.
The businesses that handle this best tend to be the ones who are comfortable talking about money in general. If that's not you yet, have a read of how to sell without being pushy. And once you've sent a new-price quote, here's how to follow it up without feeling like a nuisance.
Want a second pair of eyes on your prices?
Pricing sits right where sales and marketing meet, which is exactly where Qrios works. If you'd like help working out your numbers and planning how to talk to clients about them, the sales consultancy work with Scott McLellan from No Graft No Glory covers pricing, proposals and the conversations around them. You can also check out sales workshops for your team, or have a look at how much to spend on marketing in 2027 while you've got the spreadsheet open.
Or join Qrios Minds, from £59 a month. It starts in January, so it's the perfect place to bring your new prices and your questions about them.
Sources: British Chambers of Commerce, Quarterly Economic Survey Q4 2025; GOV.UK, "LPC recommendations take the National Living Wage to £13.21" (28 October 2026).