Chat with a client last week shifted how I look at pricing

I was on a call with a small bakery owner in Portland who buys my packaging supplies. She told me she raised her cake prices by $2.50 back in March and lost 3 regulars but her profit jumped 18% in 2 months. That math hit different because I've been scared to bump my own rates for 6 months now. She said customers who stay care more about quality than the extra dollar. Made me realize I might be leaving money on the table just to avoid complaints. Anyone else find a sweet spot after raising prices unexpectedly?

3 comments

3 Comments

elliot_patel7d ago

Small bump barely hurt, profits jumped way more than expected.

the_jessica7d ago

Read a study from Harvard Business Review that said small price bumps almost never hurt revenue long term. @elliot_patel glad it worked out for you too, the data seems pretty clear on this.

the_faith5d ago

huh @the_jessica, you actually bought that "almost never hurt revenue" line from HBR? i mean, come on, really? i've seen so many small businesses trip over that logic. a tiny price bump might not scare off customers right away, but over a year or two they notice and start shopping around. i swear every time i see a study like that it's based on like one or two big companies that can get away with anything. small places aren't the same.