The Price Increase Test (What Really Happens)

Michael Barbarita • January 28, 2026

Terrified to raise prices. Certain you'll lose customers. Test it and discover the truth.



Your profit margins suffer from untested fears. Your financial performance improves when you test reality.


The systematic test every business owner should run:


Identify one segment-new customers, one service line, one geographic area. Raise prices 10% for that segment only. Track responses carefully.


What actually happens (based on hundreds of tests):


Lost customers: Usually 5-10%, not the 30-50% you feared. Price-sensitive customers who were never profitable anyway. Customers who would've eventually left for cheaper options regardless.


Kept customers: The 90-95% who stayed now pay 10% more. They care more about your service, reliability, and results than they do about being the absolute cheapest option.


Net result: More profit from fewer customers. Less work for more money. Better customers who value what you do.


Your earnings improvement shocks you. Your business efficiency improves from serving fewer, better customers. Your cash flow management stabilizes from healthy margins.


One service business raised prices 15% expecting disaster. Lost 7% of customers. The remaining 93% generated 27% more profit. Owner worked less and made more.


Your profitability strategies must include testing. Your revenue growth becomes strategic when you discover what customers actually value versus what you assume.


Most business owners never test because fear paralyzes them. They price conservatively indefinitely, leaving massive profit on the table year after year.


You're testing. Discovering that price resistance lives mostly in your head. Building confidence through real market data instead of imaginary worst-case scenarios.


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