Would you agree that when you hear “raise your prices” as a business owner, your stomach drops? Raising your prices is one of the hardest things to do because it brings up questions about value: what you offer, how you deliver, and whether you’ve priced your offers to actually be profitable.

Plus, facing your numbers means facing reality, and realizing what you think is profitable, often isn’t. That is often really painful and more often than not, you don’t want to know.

The truth is, pricing isn’t just about covering costs. It’s not about what your competitor charges. It’s about aligning the value you bring with your cost to deliver it. But how do you know which services to raise and which ones to leave alone?

When I coach inside Path to Profit, we start by pulling your Profit and Loss in QuickBooks and zero in on three core qualifiers:

• • • What’s your most popular offer?
  • • What’s the most profitable?
  • • And what do you, as the owner, love doing?

Then we dig deeper, looking at profit margins by service, time spent, client satisfaction, and retention.

Spoiler alert: the entry-level offer is usually the most popular. But it also has the lowest profit margin, is the most time-consuming, and is often treated as a stepping stone.

So do you raise the price? Or do you leave it alone and focus on the top-tier offers that already deliver the most profit and the least stress?

It depends. But here’s my rule of thumb: Match energy with return.

If an offer drains you and your bank account, it is time to let it go. If an offer lights up you AND your clients? Those are the offers that are ready for a price increase.

CTA:

📊 This month in Path to Profit, we’re covering exactly this, how to choose the right services to raise, restructure, or retire using your books, your gut, and your goals.

Learn more about Path to Profit HERE

Because cash flow isn’t luck, it’s strategy.