Lesson 046 min read

The Pricing Power Calculator

What should you actually charge? Most owners guess. This calculates your floor, your ceiling, and shows you exactly where the profit lives.

67%

haven't raised prices in over a year.

During that same year, costs went up 3-5%. Rent, supplies, labor — all up. They effectively gave themselves a pay cut without realizing it.

The Problem

The Pricing Lag

Costs rise continuously — every month. Prices rise occasionally — once a year if you're disciplined. Never if you're afraid. The gap compounds. Two years without an increase = 7-10% less in real terms.

The Quiet Loss

$35K-$50K Gone

On $500K revenue, a 7-10% real decrease means $35K-$50K that quietly disappeared. Not from lost clients. Not from bad months. From standing still while costs moved.

Three Numbers That Matter

FLOOR

Cost per client x 1.3. The absolute minimum to survive. Below this, you're working for free.

MIDPOINT

Market average. Where most cluster. Being here is fine. Being below means leaving money on the table.

CEILING

Premium providers' rates. Achievable if your service, reputation, and presentation justify it.

What Actually Happens When You Raise Prices 10%

1

Average client loss: 1-3%

Not 10%. Not 20%. The vast majority won't even mention it. The ones who leave? Your most price-sensitive, least loyal, most demanding customers.

2

Net result: More money, less work

Even losing 3% of clients, your revenue goes up. And the clients you lost were the ones draining the most energy.

3

The real risk: NOT raising prices

Every month you wait, the pricing lag grows. Margins shrink. Stress increases. You work harder for less.

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Price is a story you tell the market about your value. Cheap prices tell them you're cheap.

Takes about 3 minutes. No email required.

Pricing Power Calculator

Enter your numbers. Find your floor, ceiling, and the gap you're leaving on the table.

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Common Questions

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