Money Business & Finance

Increase your prices today

By Sawan Kumar
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Quick Answer

Raise your prices today by 25-40% — a single increase on a 20% net margin business typically doubles profit, even after losing 10-15% of price-sensitive buyers. Includes the exact 6-step framework Sawan uses with 79,000+ students.

Key Takeaways

  • 1Raise prices by 25-40% in a single move — incremental 10% hikes get negotiated away and underdeliver on margin lift.
  • 2On a 20% net margin business, a 25% price increase typically doubles net profit because cost base stays flat.
  • 3Grandfather existing clients for 60 days when announcing new pricing — this protects retention and removes founder guilt.
  • 4Update every public touchpoint (pricing page, Stripe, GHL calendar, LinkedIn, proposals) on the same day — partial updates kill increases.
  • 5If your close rate stays above 60% of baseline 30 days after a price hike, you are still underpriced — schedule the next increase for 90 days out.

⚡ Quick Answer

Raise your prices today — not next quarter — because a 20% price increase typically lifts revenue 20% even if you lose 10-15% of buyers, and on a 20% net margin business it can double profit. Research from Harvard Business Review shows a 1% price increase yields an 8.7% average operating profit lift, far outperforming volume or cost-cutting plays. Companies that get pricing right outperform peers by 2-7% on margin according to McKinsey.

If you want to grow your revenue without working more hours, the fastest move is to raise your prices today — not next quarter, not after you add another feature, today. I have trained over 79,000 students and the single biggest leak I see in service businesses, course creators, and consultants is chronic underpricing.

Direct Answer: Raising your prices is the highest-leverage growth lever in any service or knowledge business because it increases revenue, margin, and perceived value simultaneously without requiring more leads, more hours, or more fulfilment cost. A 20% price increase typically produces a 20% revenue lift even if you lose 10-15% of price-sensitive customers, while attracting buyers who value outcomes over discounts.

Why Underpricing Is Killing Your Business

As a Chartered Accountant turned AI consultant, I read P&Ls every week — and underpriced businesses share the same pattern. Margins are thin, the founder is exhausted, refund requests come from cheap clients, and there is no budget left for ads, hiring, or systems. The math is brutal: if your net margin is 20% and you cut your price by 10%, you do not lose 10% of profit — you lose 50% of it.

The reverse is also true. A 10% price increase on the same cost base often doubles your net profit. That is why every serious operator I coach inside my GoHighLevel and AI consulting programs audits pricing first, before touching ads or funnels.

The Real Reason You Are Scared to Raise Prices

It is rarely about the market. It is about three internal stories: "my clients cannot afford it," "competitors charge less," and "I am not worth that much yet." None of these survive scrutiny.

  • Affordability is a positioning problem, not a price problem. Premium clients exist in every market — you are simply not visible to them at your current price.
  • Competitors charging less are usually losing money or have a different business model. Copying their price copies their problem.
  • Worth is set by outcome, not effort. A two-hour consultation that saves a client AED 100,000 is worth more than 80 hours of busywork.

How to Raise Your Prices Without Losing Clients

Direct Answer: The safest way to raise your prices is to grandfather existing clients at their current rate, announce the new price for all new buyers with a 14-30 day notice window, and add one tangible bonus — onboarding call, audit, template pack — that justifies the increase. This protects revenue, gives loyal clients a reason to stay, and creates urgency for fence-sitters.

Here is the exact sequence I use with my clients:

  1. Set the new price 30-50% higher than your current rate. Small increases (5-10%) trigger the same resistance as big ones, so make the jump count.
  2. Stack the offer. Add a 30-minute strategy call, a Notion template, a private Loom audit, or a 90-day guarantee. The new price needs a new reason.
  3. Email your list 14 days before the change. Subject line: "Prices going up on [date] — lock in current rate." This single email often generates a month of revenue in 72 hours.
  4. Update every price publicly the same day — website, sales page, proposals, email signature, GoHighLevel funnels. Inconsistency kills trust.
  5. Hold the line for 30 days. Do not negotiate, discount, or apologise. The first three "no" responses will tempt you to roll back. Don't.

Pricing Frameworks That Actually Work

Forget cost-plus pricing — it caps your income at how cheap your inputs are. Use one of these instead:

  • Value-based pricing: Charge 10-20% of the financial outcome you create. Save a client $50,000? Charge $5,000-10,000.
  • Tiered pricing (Good-Better-Best): Three options where the middle tier is engineered to win. The top tier exists to anchor and make the middle look reasonable.
  • Outcome-based retainers: Monthly fee tied to a specific deliverable — leads booked, posts published, automations built. Easier to defend than hourly.

Inside my Canva, GoHighLevel and AI courses I show students how to package these same frameworks into productised offers that sell at premium prices without custom proposals.

What to Do When a Client Pushes Back

Expect 10-20% pushback. That is not failure — that is filtering. The script that works:

"I completely understand. The new price reflects [specific upgrade — faster delivery, deeper audit, included support]. If budget is the constraint right now, I have a lighter [Tier 1] option at [lower price] that covers [reduced scope]. Want me to send that over?"

This does three things: validates them, holds your price, and offers a downsell instead of a discount. Discounting trains clients to negotiate every renewal. Downselling preserves your anchor.

The 30-Day Price Increase Plan

If you want a concrete starting point, run this in the next 30 days:

  • Day 1-3: Calculate your true hourly rate (revenue ÷ actual working hours including admin). Most operators discover they are earning $15-30/hour after overhead.
  • Day 4-7: Set your new price. Minimum 30% increase. Build the bonus stack.
  • Day 8-10: Update website, GoHighLevel funnels, proposal templates, email signature, social bios.
  • Day 11: Email your list with the deadline.
  • Day 12-25: Sell hard at the old price with the new price as the anchor.
  • Day 26-30: Switch over. Track conversion rate, average order value, and total revenue versus prior 30 days.

Pricing is the fastest experiment in business — the only one where you can test, measure, and roll back in under 60 days. Pick your new number this week, ship it within 14 days, and judge it on revenue, not on the loudest objections. Open your pricing page right now and increase the next number you would have charged a new client by 30%.


Keep Learning

If this was useful, these are worth reading next:

Pricing StrategyBest ForTypical Margin LiftRisk LevelImplementation Time
Flat 25% IncreaseSolo consultants, service providers+20-25% revenue, +60-100% profitLow1 week
Tiered (Good/Better/Best)Courses, SaaS, productized services+30-50% AOV via mid-tier anchorLow-Medium2-3 weeks
Value-Based / Outcome PricingAgencies, consultants with measurable ROI+200-500% per engagementHigh (needs proof)4-8 weeks
Subscription / Retainer ShiftAnyone with repeat clients+40-80% LTVMedium3-6 weeks
Annual Prepay DiscountCoaches, course creators with $49/mo offers+15-25% cash flow, reduces churnLow1 week

Source: Synthesized from McKinsey Pricing Practice benchmarks, HBR pricing research, and Sawan Kumar's 79,000+ student cohort data (2023-2026).

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