The Power of Price Increases (You Can Lose Customers and Still Win)

Michael Barbarita • December 31, 2025

You're afraid to raise prices. You think you'll lose customers. The math proves you can lose 20% and still come out ahead.


Your bottom line growth accelerates when you understand this: price increases work powerfully in your favor.


Allowable Volume Loss = Price Increase ÷ (Original Margin + Price Increase)


Same remodeler at 35% gross margin raises prices 10%.


Allowable volume loss = 10% ÷ (35% + 10%) = 22%


He could lose 22% of his customers and still make the same gross profit dollars-while doing fewer jobs, managing fewer crews, having more time.


Most businesses don't lose 22% when raising prices. They typically lose 5-10%. Meaning they do LESS work for MORE profit.


Your profit margins expand dramatically. Your cash flow management improves immediately. Your business efficiency multiplies because you're serving fewer, better customers.


At 40% margin with a 10% price increase, you can lose 20% of customers. At 35% margin with a 10% price increase, you can lose 22% of customers. At 30% margin with a 15% price increase, you can lose 33% of customers.

Think about that. Raise prices 15%. Lose a third of your customers. Make the same profit. Work dramatically less.


Your financial performance transforms. Your quality improves. Your customer experience gets better. Your stress decreases.

Most business owners price by fear instead of strategy. They're terrified of rejection. They undervalue themselves. They don't test reality.


You're running the math. Testing increases. Discovering that price resistance is mostly in your head, not the market.


Business Owners hire Next Step CFO to double and triple their profit using business and financial strategies that their competition isn't doing.