Transcript excerpt of a conversation (YouTube video) about a business’ experiment raising prices and its effects on customer counts and revenue. Speakers discuss concerns about losing customers versus increasing profitability, supply vs demand constraints, and report concrete results: price raised to $74.99, client count fell slightly (from 154 to 149), and monthly revenue rose by about $5,000 in October.
Questions this video answers
$74.99 per client.
154 clients.
149 clients.
$52,917.15.
$57,976.62.
Chapters
Why don't we raise prices? We did. We went through this this spring. Raised prices.
We did our 40.
Worst pools time wise. 40 out of 150. Okay, two left. Two. We gave them an option to pay in full. Keep that price. Yes, we can get more profitable, but, like, can we afford to lose 10, 15, 20 people? Like, truthfully, no. We're in that. That tight zone. Right. Well, here's the thing. You're either supply constrained or demand constrained. And right now you have no demand constraint because you have tons of leads coming in. If you. If you lost 25% of customers, you'd get the same amount of money. But then you're like, well, we wouldn't have enough leads to keep the crew busy. Great. We will go solve that problem next. We'll do it this week. Let's go 100%. Put it on camera. Let's go do it this week. 100%. We will do it this week. All right.
We raised prices 74.99 per client. We lost four people. The revenue in October with 154 clients was $52,917.15. And with the price increase, even with a decrease in clients, which you guys know is how it works, 149. We only dropped off four clients. Revenue went up to 57.976.62. So we had a $5,000 increase.
If we're at capacity and we have a bunch of leads.
