Plumbing
How many customers can you lose after a raise?
Here is the math for plumbing. It shows how many customers could go before you make less.
| You raise | This many of every 100 customers 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.
An example
Say you do 100 service calls a year at $195 each. Raise 5% and each one is $204.75. You could do 4 fewer and still bring in more than you do now.
Why a few can go
A raise brings in more from every one of your service calls. So you can win a few fewer before you are behind.
The table counts only what customers pay you. Fewer service calls also means less time and less money spent on the work. Count that too, and you are even further ahead.
When to raise
Any time. Quotes you already sent keep their price. Every new quote goes out at the new one.
The math
Raise prices by r, and up to r ÷ (1 + r) of your customers can leave. For 5% that is 0.05 ÷ 1.05. That comes to 4.7 of every 100, rounded down.
How to raise prices in Jobber · What to say to customers · Every trade