Forum Discussion
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."