I ran one of my Boardroom sessions recently for six founders running million-pound-plus businesses.
During the session, someone very kindly referred to me as "the pricing expert" and suggested I should niche down.
I do not want to be just the pricing guy.
But I understand why it came up.
If you get pricing wrong, you do not have a business.
The real risk isn't raising your prices. It's not raising them.
Most founders are undercharging. Not because the numbers demand it, but because psychology does.
They are afraid of losing clients.
Afraid of damaging sales.
Afraid the market will push back.
There is always a ceiling. You must deliver value. Perceived value matters. If the service is poor and the price is high, you will eventually get found out.
But reluctance to increase prices is rarely about value. It is about discomfort.
Look at your own P&L.
Software costs have risen. Wages have risen. Overheads have risen. Most line items are up at least five percent over the last year or two.
If you have not increased your prices, you have made a conscious decision to absorb those increases yourself.
You are actively reducing your own margin.
That does not just affect profit. It affects behaviour.
Lower margins create tighter cash.
Tighter cash creates shorter thinking.
Shorter thinking leads to reactive decisions.
You hesitate on hires.
You delay investment.
You optimise for survival instead of growth.
Pricing does not just affect customers. It shapes the way you run the business.
There is a simple exercise you can run.
Calculate how many clients you could afford to lose after a price increase and still be better off overall. The number usually surprises people.
If you are product-based, test new price points with specific offers. Measure gross profit margin properly. If you are not tracking gross margin, you are guessing.
The real risk is not losing a few clients.
The real risk is teaching the market that you do not believe you are worth more.
I run these Boardroom sessions every month for founders at this level. They're free, in person and invite-only. If you'd like a seat, or know someone who should have one, let me know.
More to come,
Luke