Discussions on profits always seem to return to the subject of pricing. It’s easy to compute how much more profit you would receive by raising prices. However, there is a big hurdle that always presents a dilemma for service business owners: Will the customers accept a higher price?
I readily admit that if you simply raise prices more than a small amount, without any other changes — no new technology, no change in service, etc. — you can expect resistance from customers. My suggestion on pricing is not to raise them in a vacuum, ignoring the market, competition and your level of service. Instead, I think it is important to look at your pricing in a new way.