Increasing Your Prices
Putting your prices up is often the first thing small business owners think about when income or cashflow feels tight.
And sometimes, it is the right move.
But for many service-based businesses, increasing prices does not automatically increase income. In fact, it often exposes deeper problems in how the business is set up and run.
In this video, I explain why increasing prices on its own rarely fixes income issues, and what those issues usually point to instead.
I talk through some of the most common reasons why higher prices do not automatically mean higher income. Such as:
Over-servicing clients: when prices go up, many business owners feel they need to justify it by doing more. That kills capacity and often squeezes margins even further.
Weak or missing systems: if everything takes too long, relies on you, or gets reinvented each time, higher prices just sit on top of inefficiency. Revenue might rise, but profit does not.
The wrong people doing the wrong work: senior people stuck doing basic tasks because they want to impress clients or don’t trust others. This caps income quickly and blocks growth.
Selling the wrong thing: sometimes the offer or service itself is the problem. There’s simply not enough margin in what you’re selling, no matter how busy you are.
If your business is busy, growing, and doing good work, but cashflow still feels fragile, this is a useful place to pause and think.
Income problems are often a signal, not a pricing failure.
Take a minute to reflect on what might actually be limiting income in your business right now.
