Learn when and how to increase your product prices – without losing customers or having guilt.
Are you constantly working but not seeing enough profit in your bank account? You’re not alone – many product-based businesses struggle with pricing. But here’s the truth: if you want your retail business to grow and actually pay you, raising your prices is a key part of the journey.
In this guide, I’ll walk you through how to confidently raise your prices, when to do it, and how to manage the mindset wobble that comes with it – so your product business stays profitable (and sustainable).
You Don’t Want an Expensive Hobby So Do Increase Your Product Prices
If your profit margins are slim and you’re not paying yourself consistently, you may be running an expensive hobby – not a business.
Before you raise prices, look at the numbers. If your profit margin is below 60%, or you’re constantly busy but not seeing money left over, it’s time to take action.
Start by Reviewing Your Costs
If you’re nervous about increasing your prices, you can also look for ways to reduce your production costs without compromising quality:
- Buy materials in bulk to get better rates
- Negotiate with suppliers for lower prices
- Batch-make your products to reduce time spent
- Update your product design for cost efficiency
- Simplify or change packaging to save on materials
- Switch to alternative materials that cost less
- Charge for delivery if you’ve been offering it free
- Reevaluate the perceived value of your product
These small tweaks can help improve your margins. But don’t let them replace your need to charge what your products are truly worth.
Why Raising Prices Is a Smart (and Necessary) Move
The biggest mindset shift to make is this:
You’re not just pricing the item. You’re pricing the result and the value it creates.
Your product might:
- Solve a problem
- Make someone’s life easier
- Mark a special occasion
- Give them a great experience
- Help them feel confident or connected
- Offer convenience, joy or meaning
That is the real value and it deserves fair compensation. So identify what value your products give your customers.
Signs It’s Time to Raise Your Prices
- You’ve invested in training, tools or education
- You’re charging significantly less than your competitors
- You’re constantly working but never feel ahead financially
- You’re stretched too thin and nearing burnout
- Your business has grown in skill, quality or demand
- When you live somewhere with a higher cost of living
- Your margins are too low to reinvest or pay yourself
Afraid of Raising Your Prices? You’re Not Alone
Yes, raising your prices might feel uncomfortable. That’s normal.
It might feel scary the first time you press “publish” on your new prices. But here’s what I always say to my 1:1 retail mentoring clients:
That feeling in your stomach? It’s not just fear – it’s excitement.
A few tips to ease the transition:
- Tell your customers ahead of time (or not – most won’t notice)
- Explain the reason if you want to, but you don’t have to
- Remember: you’re closer to your pricing than anyone else. Most customers won’t notice small increases, but they will notice the value they get
Boost Your Pricing Confidence with a Better Mindset
Use affirmations (in your own words) to shift your thinking around money and value. Try these or tweak them to suit your style:
- I am worthy of charging these prices
- People love to buy from me at my new prices
- My customers understand and appreciate the value of my work
- I confidently price for profit
- I run a profitable business that pays me well
- My customers see the quality and value in my work
- I showcase the value of my work to my customers
Say them regularly. Write them down. But the trick is to believe them to change your mindset.
Increase Your Product Prices Is Part of a Healthy Business
As your product business grows, your pricing should evolve with it. Confidently raising your prices means you can:
- Earn more from the sales you’re already making
- Reduce burnout and overwork
- Attract customers who truly value your work
- Invest back into your business and yourself
Want help pricing your products profitably?
If you’re unsure how to review your prices, increase your margins, or feel more confident charging what you’re worth, I can help.
Let’s review your pricing together and make sure your products are working for you.
