Inflation is rising, and so are your costs.
But are your prices keeping up?
If not, you’re silently bleeding profit—and you may not even realize it.
The Cost of Avoiding a Price Hike
Many business owners avoid raising prices.
Why?
Fear.
Fear of losing clients. Fear of seeming greedy. Fear of rocking the boat.
But here’s the reality…
When inflation rises and you don’t increase pricing, your cost of goods sold rises, your margins shrink, and your profits disappear.
You’re doing the same work, but taking home less.
Sound familiar?
We worked with a business owner who delayed raising prices for months.
One Business Owner’s Breakthrough Moment
He was stuck in the mindset: “I’ll lose clients. They’ll get upset.”
Eventually, he took our advice and raised his prices.
Here’s what happened:
- The problematic clients—the ones who complained, caused issues, and drained his time—left.
- His overall revenue stayed the same… but his profit increased.
- He finally took a vacation, and—get this—paid himself a salary for the first time.
Same sales. Higher margins. More freedom.
3 Steps to Confidently Increase Your Prices
Want to make this shift in your business? Here’s where to start:
1. Job Cost Everything
You can’t set prices properly if you don’t know your labor cost.
Even an estimated job cost is better than no data at all.
It’s your foundation for profitable pricing.
2. Create a Pricing Sheet
Build an Excel sheet that calculates proper pricing and ensures every team member knows:
- What to charge
- What margin to target
- How to price consistently
No more guessing games.
3. Know Your Margin vs. Markup
This one’s a game-changer.
Markup ≠ Margin.
Most business owners think that a 25% markup means 25% profit. Not true.
If you want 25% profit, you need to mark up by 33.33%.
Here’s a quick tip:
- Margin = what stays in your pocket
- Markup = what you add to get there
Understand the difference, and you instantly become more profitable.
The Bigger Picture: Win as Others Close
Here’s what happens when you get pricing right:
✅ Your margins improve
✅ Your profits grow
✅ You attract better clients
✅ You outlast the competition
As others avoid raising prices (and go out of business), you thrive.
Because your strategy is based on numbers, not fear.
Ready to Take Your Business to the Next Level?
Book a strategy session with one of our coaches by clicking the link below 👇
https://actioncoachtampabay.com/strategy-session/
