Founders often feel guilty about raising prices. Reframe this: sustainable profit margins are what allow your business to survive and continue serving customers. Without profitability, the business fails and everyone loses. It's a matter of ensuring longevity, not greed.

A low price can signal a low-quality or immature product, repelling enterprise or mid-market customers. Raising prices can make your product appear more robust and suitable for their needs, thus increasing demand from a more desirable—and previously inaccessible—market segment.

A very high sales close rate (80% or more) is a clear indicator that your product or service is significantly underpriced. Instead of celebrating the rate, view it as a signal to raise prices by 3-4x to maximize revenue, even if the close rate drops.

Pricing is your most powerful lever. For a typical service business with a 10% net margin, a simple 10% price increase goes directly to the bottom line, effectively doubling the company's total profit without any additional operational cost or effort.

When communicating price increases, sales teams should avoid apologies. Instead, frame the hike as a necessary reinvestment into the business—hiring the best engineers and technicians—to continue providing the top-tier products and service that customers demand, directly linking price to sustained quality.

When negotiating a price increase, if the customer accepts immediately without pushback, it’s a strong signal you've significantly underpriced your product. Buildots' founder prepared for a negotiation over a 4x price increase, but the client agreed instantly, revealing the product's true value.

Contrary to the common advice to 'just raise your prices,' you should first increase client volume until your delivery system is strained. This process proves your product's value and operational scalability, giving you the confidence and justification to command higher prices.

For service businesses, a price that is too low can signal a lack of quality and hurt sales. Increasing prices can boost a customer's conviction that you can deliver on your promise, thus increasing the perceived value and improving the close rate.

When raising prices, resist the impulse to justify it by adding more to your offer. A price increase should reflect the existing transformation you provide. This ensures the additional revenue goes directly to profit instead of being offset by new costs.