Should You Raise Prices This Year? Here's How to Know

Fuel’s up. Labor’s up. Insurance is brutal. So should your prices be. Here's how to know when it's time to raise your rates — and how to do it without chasing off your customers.

Most haulers wait too long to raise prices.
They worry about losing business. Looking greedy. Making the wrong call.

But the truth? If your costs go up and your prices don’t — you’re the one paying for it.

⛽ Fuel, 🛠️ Labor, 💰 Insurance — It’s All Up

Let’s break down just a few real numbers:

Diesel: Up 20–40% compared to two years ago
Tech wages: You either pay more or you don’t keep anyone
Insurance: Commercial auto and liability premiums keep climbing — even with clean records

Plus:

Parts and supplies are harder to get
Landfill and dump fees creep up year after year
Customers want faster response times with fewer headaches

If you haven’t raised rates in 12–18 months, you’re probably bleeding margin.

📊 How to Know If It’s Time

Ask yourself:

Has your profit stayed flat even as your business has grown?
You’re working harder for the same return — bad sign.
Are you absorbing cost increases just to “keep the peace”?
That peace won't last long if your trucks are breaking down or your best guys quit.
Are competitors charging more and still booked out?
That means the market will bear it — you’re just behind.
Do you cringe when you look at what it actually costs to service a unit or pull a can?
If your true costs (labor, fuel, admin, insurance, maintenance) are within 10–15% of what you’re charging — raise it. Now.

💡 How to Raise Prices Without Losing Customers

1. Be Upfront and Professional
Don’t ghost-raise. Send a letter or email explaining why:

Increased labor and supply costs
Continued commitment to quality service
Advance notice (30+ days)

2. Offer Lock-In Incentives
“Book your seasonal contract by [DATE] to lock in current pricing” — gives you security and gets them off the fence.

3. Keep Your Value Front and Center
When you raise prices, highlight what stays:

Fast service
Live dispatch
Clean, reliable equipment
Trusted crew who shows up every time

4. Review Customer Types

High-maintenance, low-margin jobs? It’s okay to lose them.
Loyal, high-volume clients? Reward them. Consider modest increases with added perks (priority delivery, waived fees, etc.)

📈 Final Thought:

You can’t build a business on yesterday’s pricing.
If your costs have gone up, your rates should too — or you’re funding your customer's savings out of your pocket.

Raise them smart. Explain it clearly. Keep delivering.

🧻 Built on Waste — For Those Who Know the Grind