You can raise your prices and keep almost all of your customers — but only if you do it the right way. Most daycare owners who lose clients after a price rise lost them because of how the increase was communicated, not because of the amount.
How much can you raise prices without pushback?
In practice, increases of 5–10% are absorbed by most existing customers with little friction, provided they're given proper notice and a clear reason. Increases of 15–20% are possible but require more careful handling.
If you haven't raised prices in two or more years, you may need a larger increase to catch up. In that case, consider doing it in two steps six months apart rather than one large jump.
How much notice should you give?
A minimum of four weeks. Six is better. Springing a price rise on customers in the same week it takes effect damages trust and gives them no time to adjust their budget.
How do you frame the message?
In writing, personally, directly. A group WhatsApp message or newsletter blast feels impersonal. A direct message or email to each customer lands very differently.
The message should: be warm and direct — don't bury the price change; reference something specific you've invested in or improved; give the exact new rate and the exact date it takes effect; invite questions but not negotiation.
A template that works: "Hi [name] — I wanted to give you a heads-up that from [date], our day rate will be moving from £[X] to £[Y]. We've [added secure new fencing / moved to a bigger space / invested in additional staff training] this year, and this brings our pricing in line with what it costs to run things properly. [Dog's name] is a huge part of what we do, and I really value having them with us. Any questions, just shout."
Should you grandfather existing customers?
Occasionally, for very long-standing customers or those on fixed-term agreements, a phased transition makes sense. But grandfathering as a default — keeping original customers on old rates indefinitely — quietly caps your earning potential.
If a customer threatens to leave, let them. The customers worth keeping will stay.
What's the biggest mistake owners make when raising prices?
Apologising for it. Phrases like "I'm so sorry to have to do this" undermine the message before you've made it. You are running a business. Businesses raise prices. Confidence in your pricing signals confidence in your service.
When is the best time to raise prices?
January or September — the two natural reset points in the year. Avoid raising prices in the weeks before or after school holidays when customer stress is already high. Avoid Christmas entirely.