How to Confidently Increase Your Prices as a Small Business Owner

Let’s be real, raising your prices can feel awkward, even when you know it’s time. You’re working late nights, delivering incredible results, and still wondering why your bank account doesn’t reflect the value you’re bringing to the table. Sound familiar?

If you’ve been undercharging, overdelivering, or just haven’t revisited your rates in a while, this post is your permission slip: it’s time to raise your prices and do it with confidence.

Here’s exactly how to do it without feeling salesy, panicked, or apologetic.

Step 1: Know When it’s Time to Increase Your Prices

Not sure if now’s the right time? Here are a few signs you’re due for a price adjustment:

• You’re consistently booked out and turning people away

• You’ve gained more experience, certifications, or skills

• Your current pricing isn’t sustainable for your time or energy

• Your take-home pay isn’t reflecting your workload

• Your clients are getting major results—but you’re still charging beginner rates

  
  

If you nodded along to any of those, you’re not being greedy. You’re being strategic. You’ve grown and your pricing should reflect that.

Step 2: Review Your Numbers and Profit Margins

Before you raise your rates, run the numbers. What does it actually cost you (in time, tools, and team) to deliver your product or service?

Look at:

• Your hourly input vs. what you’re charging

• Your cost of goods or software

• Profit margins per service

• How much you need to make monthly to hit your goals

  
  

This isn’t just about picking a “worth it” number out of thin air, it’s about building a business that’s profitable and sustainable.

Step 3: Reframe the Value

Raising your prices isn’t about charging more for the same thing. Often, you’re offering more value now than you did when you set your original pricing.

Consider:

• What transformation are you helping clients achieve?

• What is the experience or outcome worth to them?

• What additional value, tools, or support are you including now?

  
  

If you’re helping clients save time, earn more, feel better, or solve a major pain point - they’re paying for that result, not just your time.

Step 4: Decide How Much to Raise Your Rates

There’s no perfect formula, but a few guidelines can help:

• A 10–20% increase is often a good starting point for services

• For product-based businesses, revisit COGS and market comparisons

• If you’re dramatically undercharging, consider a tiered increase over time

  
  

And remember: not everyone will blink at the price jump, especially if you’ve been overdelivering for a while.

Step 5: Communicate with Confidence

How you announce your price increase matters just as much as the number itself. You don’t need to over-explain, apologize, or justify every dollar. Keep it clear, warm, and professional.

Here’s a simple script you can tweak:

"As my business grows, I’m committed to continuing to provide the best service and results possible. Starting [date], my pricing will be increasing to better reflect the time, care, and value I bring to each client. If you have any questions or want to book in before the change, let me know. I’d love to support you!"

Give clients a heads-up (ideally 30 days), and for long-term relationships, consider grandfathering in current rates for a limited time if it feels right.

Step 6: Own the Shift (Even if It Feels Uncomfy)

You will not lose every client. In fact, you might just attract better-aligned ones.

Pricing is a positioning tool and when you step into your worth, you signal confidence, quality, and clarity. That energy? It draws in dream clients who value what you do and aren’t looking to bargain shop.

You’re not charging more just because. You’re charging more because you’re running a real business and doing it well.

Ready to Build a More Profitable, Sustainable Business?

Raising your rates is just one piece of a financially healthy business. Want to make sure your backend is supporting your growth, too?

Grab our free guide: 10 Ways to Keep More Money as a Small Business Owner - it’s packed with practical, profit-focused tips to help you work smarter and grow sustainably.

👉 Download it here!

And if you want help tracking your numbers, cleaning up your books, or making sure your new pricing is actually turning into profit, we’re here for that, too.