Here’s the right way to raise prices, according to your customers

As we approach the end of 2025, small businesses across the UK continue to battle rising costs on multiple fronts, from supply chain inflation to tax burdens. And, as a result, many businesses have had to raise prices to reduce the pressure on profit margins.

For some, raising your prices is a matter of do or die, but how does it actually sit with customers? According to a recent YouGov survey, consumers increasingly prefer straightforward price rises over feeling subtly shortchanged.

While some businesses try to absorb cost pressures by shrinking product sizes, a tactic known as “shrinkflation” (looking at you, Freddo), data suggests customers would rather pay more than get less for the same price. Transparency, it seems, still comes out on top.

Why price rises are hitting businesses

Businesses are facing an onslaught of rising costs. Supply chain inflation is pushing up the price of raw materials, while employees expect higher wages across most sectors. At the same time, increased employer NICs and tax hikes mean staff are already more expensive.

These challenges are even more acute for sectors with complex or large supply chains, such as hospitality, food production and ecommerce. Here, even small fluctuations in ingredient or shipping costs can ripple through the entire operation, leaving little room to maintain previous pricing without sacrificing something, like product size or quality ingredients.

Yet despite these pressures, customer expectations haven’t dipped. Consumers still want value, fairness and consistency.

So for many businesses, the question isn’t whether to raise prices, but how to do so in a way that remains profitable without alienating loyal customers. Planning the timing and scale of price increases has therefore become essential in maintaining that careful balance.

What the YouGov data means for your customers

YouGov’s poll asked 4,223 UK adults how they think companies should respond to increased production costs.

More than half of respondents (51%) say they would prefer a price increase if it means the product stays the same size. Only 15% are comfortable with shrinkflation, highlighting just how much of a bad rap the phenomenon gets.

The findings point to a clear preference for transparency. Customers would rather be told the truth than feel duped, and clear explanations about rising costs can make the difference between a frustrated customer and one who stays loyal to the brand.

Smaller firms, in particular, often rely heavily on customer relationships, and the data shows that honesty, even when it’s bad news, can help preserve those relationships.

How to raise prices without losing customers

If you need to raise prices, the first step is to figure out where expenses have increased, how margins are affected, and what level of price adjustment is actually needed.

Equally important is avoiding the tactics customers dislike. Shrinkflation may seem like a quick fix, but it ruins trust and leaves a bad taste with regulars who will notice slight changes in portion size or ingredient quality.

Likewise, dynamic or surge pricing feels unpredictable. Understandably, this won’t sit right with customers who are also feeling the cost-of-living pinch. Instead, keep your products consistent and explain honestly why prices need to change.

When communicating the rise, be upfront. Outline the cause and reassure customers that quality and value are your priorities. Many customers are more understanding than businesses expect, as long as they don’t feel misled.

Once the increase is in place, monitor feedback. Look at sales patterns, social media, and review sites. If something isn’t landing well, adjust accordingly.

Ultimately, transparency is the safest bet. Well-explained price rises both preserve trust and allow businesses to navigate tough economic conditions.

Learn more about the best pricing strategies to employ in your business in our complete guide, updated for 2026.