Should You Be Increasing Your Prices in 2025?

Why should you be considering a price increase in 2025?

Often, many business owners delay putting up their prices for fear of driving customers away. However, every month that costs rise while prices stand still, the extra expense comes straight off your profit margin.

Here are some signs that you should be considering an increase:

• Employer National Insurance has increased from 13.8 % to 15 % from 6 April 2025.
• The National Living Wage has climbed to £12.21 an hour for over-21s, an increase of 6.7%, and even bigger increases for under-21s.
• Inflation hasn’t gone away, the Bank of England expects CPI to peak around 3.7 %–3.8 % in Q3 2025 before easing.
• Are your competitors charging more for the same service? If your industry is typically higher than you, this is another sign you are perhaps pricing too low.
• Have you gained more experience and expertise? Your pricing may not be reflecting your true value.

To calculate the perfect product selling price, we have put together a formula which will help you find this. You can access the full breakdown of our formula and how to apply it here.

Communicating your price increase

Clear communication can determine whether a necessary price rise feels like a vote of confidence in your brand or a breach of trust. Here are some steps to ensure smooth communication with clients when informing them of price increases.

• Give customers plenty of notice: Communicate with clients 2–3 months before the change and flag the effective date in every touchpoint. Customers who get early warning feel respected and have time to budget. Firms that give 60-90 days see far fewer complaints than those that give 30 days.
• Explain the why with transparency: Outline a handful of drivers, transparent explanations can cut negative reactions.
• Communicate value: reiterate the value of your services, what your clients experience such as faster delivery, extra features, better support, or simply the ability to keep standards high.
• Open communication: Answer any questions, add a FAQ link in the notice, and encourage account-manager follow-ups. Two-way communication signals respect and lets you correct misunderstandings before they turn into churn.

Price increases aren’t something to shy away from, in fact they’re a vital part of keeping your business profitable, sustainable, and positioned for growth.

• Inflation, rising costs, and wage pressures eat away at your margins if your pricing stays still.
• Communication is key - honestly, clearly, and with a focus on value.
• Charging appropriately helps you work with customers who understand and respect the value you bring.

How can we Help

As always, we’d recommend looking in detail at all factors influencing the price and demand in your market and develop a robust pricing strategy to ensure sustainable profits. If you would like help building a strategy that protects your margins, retains customer trust, and reflects the true value of what you offer, book a consultation today.

Please note: This article is provided for information only and was correct as at the time of writing (30/07/25). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.