Who is raising prices for 2026?

[CurlyDoodle]

What two words make small business owners tremble? PRICE INCREASE.

So many folks, especially in the pet industry, hate increasing prices and frankly sometimes behave as if they are in the charity business. Customer complains? Comp the service. Senior citizen? Big discount. It's like they feel bad charging for their work.

Another issue I see is not raising prices. Other groomers in my area have not raised prices in years and are charging much less than I am. Consequently, they are heavily booked and usually not taking new clients. It takes just as much effort (and cost) to provide a service for $100 as for $200. 

I worked out a logical price increase earlier this year -- roughly 10% on some services -- and made a plan to implement it first of the year. I decided to combine this with an incentive to get folks on a regular schedule. It is MUCH easier for me and for the dog if they are on a schedule. Otherwise, clients forget and the months go by before they rebook.

A couple weeks ago, I sent out an email inviting clients to "Subscribe and Save." If they are on a recurring schedule of no more than 8 weeks, they will continue to enjoy 2025 prices. New clients or those booking as needed will pay the new price. Right away, two clients signed up. A few others called and I assured them they were already on the recurring schedule so will receive the discount. One totally misunderstood the email and complained on social media that I was no longer taking as needed appointments and everyone must book every 4 weeks 🙄. I corrected her, but she insisted she was right. Okay. 

We'll see how it goes after the first. Looks like we're finishing the year with ~$125k, so an extra 10% adds $12,500. Other than the S&S email, I did not make a big deal out of the price increase, nor did I list the new prices. I think some business owners go out of their way to explain why they increase prices with lots of details. I don't. 

Are you raising prices next year? How are you rolling out?

[Minion]

It's in the plan to raise them, by how much I am unsure of at this moment in time.  It goes without saying that the majority of the public doesn't see the things that have to go on before or after a service that takes time and money to clean up or prep for the next one.  I already do discounts for vets, seniors, multi vehicle.  While I do plan to increase the prices, similar to you I am planning on sending out an email marketing campaign via Square (free plug, your welcome) this spring/early summer to encourage customers to book earlier than late fall.  This will free up my late fall time which I tend to get 6+weeks booked out come August, save them some money but most importantly the product being applied works better in the summer so it should be an all around win for everyone!

[TheRealChipA]

I used to worry a lot about price increases.  I don't, anymore.  My prices are set in order to pay my bills, pay my employees fairly, and still have something left for me.  A couple of years ago, I added an FAQ to my website that focused on why our prices are what they are.  People understand that the two biggest factors in my product pricing are wages and supply costs.  When they understand that our employees make good money for a seasonal ice cream job, it's rare that they complain.  Those that do complain usually do so with statements like "that's a lot more than McDonald's charges," which is easy to ignore since McDonald's is just around the corner.

One of the biggest mistakes many business owners make is to try to have the lowest price around.  Honestly, that never works if one wants to make a profit.  Sure those who do charge much lower prices might be heavily booked, but I'm betting that's only half the story.  If their products and services aren't priced to make a consistent profit, then they are consistently either losing or not making enough money on each of those sales.  That's not sustainable.

My discount program basically consists of one thing -- my loyalty program, period.  We also have promotional business cards that offer things like a free small item, or a discount.  I don't do discounts for any special interest group because in my experience that is a slippery slope.  If I have discounts for x, y and z, then w gets offended because they aren't on the list, so I have to add w.  Etc.  I'll occasionally comp things, or heavily discount them, when the situation warrants it.  My employees even have a comp/discount bank they can use.  Since my employees have common sense I've never had a problem with abuse of that policy.

Honestly, like so many things, I consider this a uniquely USA problem.  Our country is on a race to the bottom as far as capitalism is concerned.  Everyone has been conditioned to look for deals, which aren't really deals in most cases.  That's not how I ever want to run my business and if I have to do so that's my cue to quietly retire.

Anyway, for 2026? I might have a slight across-the-board increase.  But it won't be much, it won't be noticeable and I won't make a big deal out of it.  People will either buy something or they won't.  Given that my year-over-year have increased 25% for the past 5 years, even with modest price increases, I no longer lose sleep over it.

[perkits]

Same here, I don't worry about. Neither do my suppliers, and they never tell me they just do it. We will be making adjustments before 1/2/26. We have a very generous Square Loyalty program and it is very successful. We are currently running around 60% for the year.

[rtfulk]

I agree that our country has a race to the bottom.  Consumers don’t realize there is no buy on get on free or get one 50% off.  Someone , somewhere is paying for that difference.  

We don’t do any type of discount either except for our loyalty program.  We figure if you are loyal to us, we will repay you with a discount and it’s been working well.  

We do keep a clearance rack for “Deals”. The only reason we have that is when you get down to just a couple of sizes/items in clothing, they seem to just sit there.  So we mark them down to clear them out and when the deal seekers come in our booth we just direct them to the clearance rack.  

[CurlyDoodle]

Great response, Chip. That's probably your real name, but forgive me if it makes me think of mint chip ice cream, my favorite! 

Providing an environment for employees to be successful is important to me as well. I tell clients that all tips go to the groomer performing the service. I want to pay enough and treat people well enough that they stick around. 

Totally with you on the discounts. Many "seniors" in my area have way more money than I do, so I see no reason to give them a lower price. Conversely, I have several low-income clients who schedule appointments after the first when they receive social security, and they pay full price like everyone else. They take great pride in grooming their dogs, and tell everyone around town. So it's not about how much money you have, it's what your priorities are. 

I had a guy pop in the other day saying his groomer is retiring and he wants to hire me. He has a Schnauzer with a skirt, which is a lot of work. When I told him $100, he said, "Oh, my other groomer charged $75." Uh-huh, we charge $100. He immediately asked if we offer a discount, this after he tells me he has two homes, one here and one in SF. Bye.

I heard about the race to the bottom in some business book or podcast and it resonated. That's not how I want to do business. 

[RabattDigga-de]

Have you noticed whether clients on a regular schedule tend to be more understanding and loyal when it comes to price increases compared to as-needed clients?

[CurlyDoodle]

I am about to find out! 

I have had this business for 2.5 years and only did one kind of price increase after the first year. I say kind of because at that point I knew exactly how long certain procedures take, so I adjusted a couple of the prices and also changed categories. For example, my "small dog" covered everything from a Chihuahua to a very hairy 35lb Maltipoo. I created a "medium" category and also a "longhair" category for dogs like Golden Retrievers and Huskies.

If current clients are on the recurring schedule, they won't see a price increase till next year (2027). In general, loyal regulars are easier to work with in all ways. If they have a complaint, they are factual and willing to work it out. On the other hand, clients who come out of nowhere have a high incidence of unrealistic expectations and complaining. It seems these kinds of clients go from one service provider to another, never satisfied. 

[CurlyDoodle]

I just got a timely email from a company that makes horse hoof boots (to be used instead of metal shoes). I have several pairs. Looks like they are utilizing the same strategy of "purchase at the old price before next year." In addition, they offer 30% off if you buy two pairs. 

[JTPets]

We are a retail pet reseller, our prices go up all the time based on supplier costs, we are already seeing price changes pushed down for January and February

[bonny]

I'm a product-based business, so my answer will be different from yours. My prices are based on the cost of goods, so when they go up, I adjust my selling price accordingly. The challenge this past year was with the on again, off again tariffs to find a reasonable middle ground so my prices weren't reflecting the crazy roller coaster I was feeling as I sourced my products. 

Bonny Wagoner - Artist/Illustrator

[CareyJo]

We charge a flat percentage on any part or material, so our percentage doesn't increase but the cost to the customer does when our cost goes up.  We don't have to think about it because our percentage doesn't change.

[MudFire_Dex]

We raised our membership price for only the second time in 14 years. We just can't absorb small costs forever. In our industry prices are all over the place for classes and monthly fees and we are in the bottom-mid tier already and will still be with the small increase. We increased membership capacity first to generate income to buy our building (proceeding with that now) and are doing a small increase of $15 a month for new members and capped it at $8 a month for current members. We are also limiting our sliding scale (0 and half price memberships for hardships and disproportionately affected members in BIPOC and LGBTQ+ communities to 6 months so that more people can take advantage of the program over time) We allocate 10% of our membership spaces to those spots.

[CurlyDoodle]

I checked out your website - very cool. I have a friend who is an avid pottery maker. 

I guess pricing depends on whether this is a way to make your living or more of a hobby. You say you are in the "bottom-mid tier" which indicates there are higher priced similar services and people are paying them. I started high and stay there for a number of reasons, mostly because this is how I make my living, but also because I want the funds to pay staff well and give back to my community, and to attract better clientele. I find that bargain hunters and tire kickers are not folks I want to work for. 

[Bronze_Palms]

Completely agree.

I think a lot of it has to do with knowing your numbers as a business owner.

I see it time and time again beauticians will enter the market at reduced rates that have me scratching my head and they don't last in the market bc while it looks like they are booked and busy, they are not profitable.

I think there is a psychology to cheap rates, as well. The perceived value of a cheaper service is exactly that.

[CareyJo]

While our CPA was in school, her rate was lower, working under a CPA who charged twice what she did.  She made it clear when we hired her that upon graduation, her rate would increase.  I think more new people need to take that kind of step when they start out so they get paid, build a clientele that will keep them going and the clients won't be caught off guard.

[CurlyDoodle]

You hit the nail on the head here. I charge $110 for a small groom and the groomer around the corner who is way more experienced and established than I charges $65. She is overbooked and doesn't take new clients. 

As a consumer I am willing to pay well for quality and good customer service. 

Funny, a man came in a few months ago saying his groomer retired and he wants to hire us for his Schnauzer. I told him $110 and he said oh, my other groomer charged $70. Do you give discounts? This after he tells me he has two homes, one in Healdsburg and one in San Francisco. If you're not familiar with the area, that's million$. I said no I don't, have a nice day. The following week a woman comes in and sets up an appointment for her Schnauzer. I had already forgotten about the man, but I remembered when they both came in for the appointment 😁. 

[CareyJo]

So, how is it going so far?

We raised our labor rate by $25 at the first of the year.  Last increase was two years ago.  Our margin on parts and materials will never change.

We have no heard any complaints and honestly, I don't think people even notice.  Our current rate is the average in our area and at least a dozen other companies are way higher, so people are not going to complain.

[CurlyDoodle]

Out of over 400 clients, the only response I got was from 2-3 calling to make sure they were on the recurring schedule (which entitles them to the old price for an additional year). Another 3-4 signed up for the recurring schedule, which is a win for me and the dogs. Maybe 2 clients when checking out asked, "Did you raise prices?" I replied yes, at the first of the year. I sent an email but not everyone reads it. No one complained.