Mike Andes says raise prices 20% once you're at capacity. A $500K business with $100K profit doubles its profit to $200K after the increase. In Augusta, 50 locations raised prices 15-25% and lost less than 10% of customers.
Now, once you start hitting that limit is when you're gonna raise prices by a minimum of 15%. So when we hit capacity, we're booked out, we're getting to the point where people are canceling because we're booked out so far, we've gotta raise prices. Now, I hate when people raise prices by 3 or 4%. They're like, "It's an inflation adjustment." Look, I would rather just tear off the bandaid and raise prices by 15% minimum, minimum. I would ideally go 20 or 25% when I'm raising prices because I know if I'm providing a great service to my customers and I raise prices, great customers stay. The ones that accept my upsells, they have huge amounts of value compared to the price that I'm servicing them at. They're okay with the price increase 'cause value is still higher than price. And so last year, for example, at Augusta, almost 50 locations raised prices. All of them raised prices by at least 15%. Most of them were over 25% that they raised prices. Guess what? Not a single location lost more than 10% of their customers. They're in profit mode. And at this size, this working GM phase, where you're still in the field working sometimes, but you're also managing your crew, you can be really profitable and efficient. And as soon as you raise prices one time by 20%, you could double your profits. If you're doing $500,000 in annual revenue and you're 20% profitable, that's $100,000. If I raise my prices by 20%, I will raise my prices to $600,000. My revenue will go to $600,000 and I'll make $200,000 in profit.
