How Much Can a Business Raise Their Pricing Without Attrition

Hi everyone, Carl Gould here with your #70secondCEO. Just a little over a one-minute investment every day for a lifetime of results. I'm going to ask you a question.

You tell me in the answer of a number, think of a number for a moment based on my question. My question to you is if you were to go out to your clientele right now and set aside the ones that you already have contracts with that where the pricing is already fixed. But if you basically went out to your clients and your prospects and you raised your pricing 1%, just 1%, what percentage of your clients would abandon you? They would leave. You were at a hundred dollars. You're now at one Oh one. You were at 3%.

Now you're 3.03%. What percentage of attrition would you experience? Do you think? Okay. Zero. So 3%. If you raise your prices 3%, what level of attrition would you experience then? Zero. Okay. 5%. Right. 5%. How about 5%? Would some of you start to get attrition at 5%? Yeah, probably. Right. So maybe you're from one to four Let's just call it that.

If there was any number where you felt you could raise your pricing and you would have close to if not zero attrition, that's a signal from your clientele that they love you for something more than just the utility of your product or service. They like you for some other reason. You're a professional.

You're based in the U S you're a local company. You're, you know, the same faith as them. You believe in the same charity. I don't know. Whatever it is. You're just nice on the phone. Whatever. You write good emails. Whatever it is. Okay. But for whatever that is, they love you and are willing to pay you more than you're charging them.

Like and follow this podcast so you can learn more. My name is Carl Gould, and this has been your #70secondCEO.