For two years, we priced based on what felt "fair."
Not what the work was worth. Not what the market would bear. What felt comfortable to say out loud on a sales call.
Our margins were 8-12%.
One bad project—one scope creep situation, one technical surprise, one client who needed extra hand-holding—wiped out an entire quarter's profit.
We were busy. We were barely profitable. And we were terrified to raise prices.
Here's what actually happened when we did:
→ Lost 20% of our clients (the most price-sensitive ones) → Kept the best clients (who valued quality over cost) → Attracted better new clients (who wanted expertise, not cheap labor) → Margins went from 12% to 30%+
The clients who left? They were the hardest to work with anyway. The ones who questioned every hour. The ones who wanted champagne on a beer budget.
The clients who stayed got better service. Because we could afford to invest in tools, training, and processes that made us more effective.
Raising prices wasn't about being greedy. It was about survival. About building a sustainable business instead of a treadmill.
The scariest business decision we made turned out to be the one that saved us.
What's holding you back from charging what you're actually worth?
#Consulting #Pricing #BusinessLessons #Sustainability #Entrepreneurship
→ scopeforged.com
Philip Rehberger Founder, ScopeForged scopeforged.com
