If you travel on the London Underground, you might have noticed a small fare increase in March — just 4.6%. If you’re staying within Zone 1, for example, your fare went up from £2.80 to £2.90.
It doesn’t seem like much, does it?
But it’s not the first increase. There was a 5.9% hike in March 2023, 4.8% in 2022, and 2.6% in 2021. Over time, these small, regular rises add up significantly.
Of course, each year when tube prices rise, people do grumble. But they also quickly accept the change and forget about it.
TfL’s approach – to raise prices just a little bit, often – is far better than holding prices steady for years and then shocking customers with a steep, sudden increase.
That’s a lesson for your business, too.
You know you need to raise your prices — costs are rising, margins are tightening — but it’s easy to hesitate. You might worry about customer backlash, losing new business, or damaging your reputation.
But the real problem often isn’t the price increase itself — it’s how it’s done.
A 10%, 20%, or even higher jump in one go can be hard for customers to absorb.
But smaller, more frequent increases? Those are far easier for people to accept, both mentally and in their budget. Regular, incremental adjustments allow you to keep pace with rising costs without shocking your customers.
Yes, some people will always resent paying more, but in today’s high-inflation environment, it’s simply necessary to stay competitive. The question isn’t whether to raise prices — it’s how and by how much.
If that’s something you’re grappling with, we can help.
At Insight Associates, we work with businesses like yours to provide clear, timely, and accurate financial data, so you can make smarter financial decisions.
When it comes to pricing, we take the guesswork out of the equation. By analysing real financial data, we help you understand how your costs and margins are shifting and forecast the impact of different pricing strategies on your bottom line.
When you have the numbers to back up your decisions, raising prices stops feeling like a gamble — and starts feeling like good business.
If you’re unsure what’s appropriate or how to approach it, get in touch. Simply email garry@insightassociates.co.uk or call us on 01279 647 447 to book a no-obligation consultation with me, or with one of our specialists.
Warmly,
Garry
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