How many clients can you lose after a raise?
It is the question every owner asks before a raise. The math is simple, and it is the same for every trade.
| You raise | This many of every 100 clients can leave |
|---|---|
| 3% | 2.9 |
| 5% | 4.7 |
| 7% | 6.5 |
| 10% | 9 |
| 15% | 13 |
Lose that many and you still bring in what you do now. Lose fewer and you come out ahead.
Why a few can leave
A raise brings in more from every client who stays. So a few can go before you are behind. Raise 5% and the clients who stay pay enough more to cover the 4 who left.
The table counts only what clients pay you. Fewer clients also means less time and less money spent on the work. Count that too, and even more could leave.
The math
Raise prices by r, and up to r ÷ (1 + r) of your clients can leave. For 5% that is 0.05 ÷ 1.05. That comes to 4.7 of every 100, rounded down.
Worked out for your trade
The same table, with an example in the words of your trade.
- Appliance repair
- Bin cleaning
- Carpet cleaning
- Commercial cleaning
- Construction
- Electrical
- Flooring
- Handyman work
- Home theater
- HVAC
- IT service
- Junk removal
- Landscaping
- Lawn care
- Locksmith work
- Mechanical service
- Painting
- Pest control
- Plumbing
- Pool and spa service
- Pressure washing
- Renovations
- Residential cleaning
- Roofing
- Security and alarm
- Snow removal
- Tree care
- Window washing
Next: how to raise prices in Jobber, and what to say to clients.