Start with the account, not an arbitrary percentage
A blanket 3% or 5% increase may be easy to communicate, but it may be too much for a healthy account and far too little for an underperforming one. Review the recurring economics first: current monthly revenue, labor, payroll burden, supplies, scope and other direct costs.
Then compare the current contribution margin with the target margin the business needs.
Price increase dollars = required monthly price − current monthly price.
Separate controllable labor from pricing pressure
If labor hours are far above plan because of scheduling, training or workflow, a customer price increase should not be the first response. Fix controllable operating waste before asking the customer to fund it.
If hours are on plan but wage cost has risen, or the recurring scope has permanently expanded, the case for a price adjustment is stronger.
Quantify the recurring dollar gap
Suppose a contract bills $10,000 per month but today's recurring cost means it needs $11,000 per month to support the target margin. The recurring gap is $1,000 per month, which means the indicated price increase is 10%.
Document what changed
Build a short factual explanation around recurring conditions the customer can understand: wage-market movement, added service frequency, expanded scope, required staffing changes, supply responsibility or other material account-specific changes.
Avoid dumping an internal P&L on the customer. The goal is to explain the business reason clearly, not expose every internal cost line.
Check the contract before the conversation
Review notice requirements, renewal dates, escalation language and any caps or customer-specific approval process. The operating case may justify an increase, but the contract determines when and how it can be implemented.
Offer scope choices when price is constrained
If the customer cannot accept the full increase, a scope or frequency adjustment may reduce recurring labor enough to close part of the gap. Quantify each option instead of agreeing to a vague compromise that leaves the account in the same position.
Do not let one-time costs drive a permanent increase
Startup expense, a temporary overtime event or one unusual supply purchase can make one month look bad. Base a permanent price change primarily on recurring conditions that will continue into future months.
Measure the result afterward
A price increase is not successful just because the customer signs it. After the new price takes effect, verify that the account actually reaches the intended contribution and that labor or scope has not changed again.
See Why a Cleaning Contract Can Lose Money and Commercial Cleaning Scope Creep for common drivers.
Calculate the account before you ask
Use the free Account Profitability Check to estimate the current recurring gap and see whether pricing, labor control or a combination is indicated.