Forum Discussion

AnthonySalazar's avatar
AnthonySalazar
Verified Community Coach
1 month ago

Should you keep legacy customers at old pricing forever?

This one is hard because early customers matter. They trusted you before the reviews, systems, team, and reputation were there. A lot of them helped keep the business alive when every new account felt huge.

I’m grateful for those customers.

But old pricing can quietly become a problem if the business has changed and the account hasn’t.

We've all seen stuff like labor, fuel, insurance, software go up in price. Payroll taxes, supplies, dump fees, equipment, and admin time all add pressure.

Meanwhile, that customer may still be paying a price you created when you were desperate for work, guessing your numbers, or trying to get your first few reviews.

At some point, loyalty has to be balanced with sustainability.

I don’t think every legacy customer needs to be raised immediately. If they’re pleasant, profitable, easy to serve, and fit the route well, there may be value in honoring that relationship longer.

The bigger issue is when the old price starts creating resentment.

If you look at the account and think, “I hate doing this one because we make no money,” that’s usually a sign something needs to change.

For me, the cleanest way to handle it is with respect and enough notice.

Something like:

“We’ve appreciated serving you over the years and are grateful you’ve been with us since the early days. As our costs and service standards have changed, we’re updating older accounts to match our current pricing structure. Your new rate will begin on [date].” Give them at least 30 day notice before the change.

You don’t have to apologize for running a sustainable business.

You can be thankful and still raise the price.

Do you keep legacy customers at old pricing, slowly move them up, or bring everyone to current rates?

2 Replies

  • travisshepherd's avatar
    travisshepherd
    Verified Community Coach

    This is a classic dilemma, Anthony. You hit the nail on the head: You don’t have to apologize for running a sustainable business.

    ​In my experience with Tri-State Exterior Cleaning and Paint, I’ve learned that keeping legacy customers at "survival" pricing actually does both parties a disservice. Eventually, you’ll find yourself subconsciously deprioritizing them because they’re the least profitable stop on your route, which hurts the relationship anyway.

    ​Here is how I’ve started approaching this:

    ​1. The "Resentment Audit"

    ​I look at the profit margin on every legacy account. If the account is still covering its costs and the client is a joy to work with, I’m willing to be patient with a price increase. But if I’m dreading the job because it’s a "break-even" nightmare, the pricing must change. If they leave because of it, it’s usually a net gain for the business’s bottom line and my own peace of mind.

    ​2. Standardizing the Process

    ​I treat price adjustments as a standard "business health" update rather than a personal favor. I frame it around our commitment to quality. My version of your script usually sounds like this:

    ​"Hi [Name], I’m writing to let you know that starting [Date], we’re updating our service rates to reflect current operating costs. We’ve loved working with you since the early days and want to ensure we can continue providing the high level of service you’ve come to expect. Thank you for your continued support!"

     

    ​3. The "Grandfather" Compromise

    ​If I have a customer who is truly great but I know a massive jump might shock them, I sometimes offer a stair-step increase. I’ll move them 50% toward the current rate now, and the remaining 50% six months later. It softens the blow and keeps the loyalty intact without locking me into a losing rate indefinitely.

    ​The bottom line: If you’re growing, your pricing has to grow with you. If you don't adjust, you aren't just losing money—you’re effectively paying them for the privilege of working for them.

    ​Great topic! It’s one of those things every business owner eventually has to face to move from "hustling" to "operating."

  • Great points, Anthony and Travis!

    One big thing people forget in this debate is CORE—which stands for Cost of Overhead Relative to Execution.

    In plain English, overhead is all the background money you spend just to keep your business running—like insurance, software, office work, gas, and tools.

    Pricing can't stay the same forever because your CORE always changes as you grow:

    Your background bills get bigger: When you first start out, your overhead is super small. But as your business grows, you add office help, better tools, and insurance. That means every job actually costs you more in background expenses than it used to.

    Old prices start eating your money: If your background costs go up but you keep charging a customer the same low price from five years ago, you end up paying out of your own pocket to work for them.

    A few simple ways to handle this without losing good customers:

    Check your numbers quarterly: Look at your background bills every three months instead of waiting a whole year. That way, if an old price isn't covering its share of the bills anymore, you catch it early before it hurts your profits.

    Treat price updates as normal: Tell customers that small price updates are just a normal part of keeping your service fast, safe, and top-quality.

    Raise it in small steps: If the price jump is huge, split it into two steps (like half now, and half in six months) so it doesn't shock them.

    At the end of the day, updating your prices to cover your real costs isn't mean—it's how you stay in business so you can keep helping those customers long-term.