Mike Andes tells a business owner to raise prices 20% despite worries about losing customers. With a 72% close rate and nearly $1 million in annual revenue, the math works: higher prices mean bigger profits even if fewer people convert. Use the extra margin to buy more leads.
The first thing is like, I know it seems crazy, but you got to increase your prices by 20%. I know that sounds crazy. I know it's like, well, people are going to say no and you hear every like rebuttal around price, but you are closing 72% of your jobs. And in my mind, whenever I hear 72%, you are in massive growth mode. That's why you grew to almost $1 million in revenue in a year. Like, congratulations. Like, that's huge. Like, as much as people will say stupid stuff in the comments, you build a million-dollar business. That's amazing. You have been so much in growth mode, it's going to pain you if you raise prices by 20%. It's gonna feel like all these people are saying no, and they're all saying you're expensive. But ultimately, if you closed 50%, but you had 20% higher prices, you'd be way better off. And if you put some of that extra, you know, profit towards marketing, you would get enough leads to continue to fill your funnel. Yep.
