Know your costs
An increase is decided with figures.
Sell more · 2026 edition
Your costs are rising, so is your experience, but your prices haven't moved. A well-prepared, well-announced increase usually goes down better than one forced on you. Here is how to calculate it, announce it and stay within the rules.
Updated October 2026Rules checkedNo jargon
In short
To raise your prices, first calculate your true cost price and the margin you need. Set a clear increase and an effective date. Tell your customers in advance, in writing, explaining the reasons and what they continue to receive. Respect current contracts: a signed price does not change without an agreed clause or the customer's consent.
An increase is decided with figures.
Announced in advance, never as a surprise.
Short, honest, no over-apologising.
A signed price stays valid until the end of the contract.
Many business owners wait too long. These signs show your prices have become too low.
Your costs have gone up, but your price has stayed the same for a year or more.
You are turning down work or lead times are getting longer. Demand exceeds your capacity.
If all your quotes are signed without discussion, your price is probably below the market.
More experience, better results, a more complete service: the value has changed.
A well-prepared increase goes better than one forced on you at the last minute.
You are free to set your prices, but not to change prices already agreed as you please.
| Situation | General rule | What you need to do |
|---|---|---|
| New customer | Free to set your price | Display or state the price before the sale |
| Quote already accepted | The accepted price applies | Invoice at the quoted price |
| Contract with an indexation clause | The clause applies | Apply the agreed formula, nothing more |
| Contract with a consumer | A term letting you raise the price at your sole discretion may be considered unfair | Set out clear rules in the contract from the start |
| Ongoing subscription | Inform the customer in advance | Notify them and give them the option to leave |
These general rules have exceptions depending on the sector and the country. Have a lawyer review your contracts and terms of sale before a significant increase.
Your messages, quotes and invoices switch to the new price on the right date, with nothing forgotten.
Each customer gets the right message on the right date.
The new price applied from the effective date.
Your margin per customer and per product, in real time.
Get notified when a rise in your purchase costs cuts your margin.
In writing, a few weeks in advance, with the effective date, a simple explanation and a reminder of what the customer continues to receive. Keep it short and don't over-apologise.
Start from your cost price and the margin you need, then compare with the market. One increase that makes you profitable is better than a small increase repeated every month.
In principle no, unless the contract includes a price review or indexation clause, or the customer agrees. Otherwise, the new price applies to new orders.
It is not a legal requirement for a new price, but an honest explanation helps your customers accept it.
Some may leave, often the most price-sensitive. An increase announced in advance and explained reduces this risk, without removing it. Work out how many customers you can lose while still earning the same.
Often at the start of the year or on the anniversary date of contracts, and always after giving notice. Avoid doing it just after a quality problem.
Sources: general principles of contract law (binding force of contracts) · EU rules on unfair terms in consumer contracts · your country's rules on price information and terms of sale.
General information, up to date as of October 2026. It does not replace advice from a professional.
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