Should I increase prices for my products and services?


In this episode, our founder, W Michael Hsu talks about how raising prices can help your business and how 1+1+1=19. He’s not talking about raising your price by 10% or 15%, but simply make 1% change to impact your Net profit. What are you waiting for? Let’s jump right in!

Time stamped Show Notes:

  • [00:10] Today’s topic — Raising Prices
    • [00:20] Entrepreneurs are terrified of increasing prices.
  • [00:30] Based on Michael’s nine years experiences in this field, he shares some of his thoughts.
    • [00:37] All you have to do is move your metrics by 1%.
    • [00:48] Move these levers by one percent and see how it improves your Net profit.
  • [00:53] So Michael brings in the concept of 1+1+1=19
    • [00:57] You can do a quick math or use our Power of one free template.
    • [01:10] Try to increase 1% in your price, decrease 1% on Cost of goods and 1% on overhead.
    • [01:18] The result usually will be 19% or even more different in your Net profit.
  • [01:33] Don’t think about increasing price by 10 or 20%
    • [01:40] Try start with 1 to 5% and you’ll see the difference.

Let us know how it has impacted your business and hope you guys are going profitably.

***Free tool***
power of one worksheet