Mike Andes tells a Maui business owner to raise prices 20% and expect to lose less than 5% of customers. He walks through the math: compare budgeted versus actual hours over 12 months, calculate your hourly rate, then apply the increase across the board. Higher prices cover costs and keep the business alive.
Aggressively raise prices on Maui. When you say aggressively, at least 20%.
There's like, what if, what if my biggest customer is like, Devin, we need to have a talk. And I'm like, how am I going to explain?
I don't make money and I need to make money so I can pay my employees and run this business. At least 90% of the customers have to be price increased. Yeah. And I would do it indiscriminate, 20%. That's not the way to raise prices. The way to raise prices, you look at budget hours versus actual hours over the past 12 months. You then say, what's our hourly rate? Measure it up to that. That will take you a couple of weeks. And I happen to believe a 20% price increase still gets swallowed by all of your customers.
What percentage do you think I would realistically lose? Less than 5%. Interesting.
