Why Raising Your Prices Might Be the Best Move This Year

Most service businesses are terrified to raise their prices.

They believe that lowering rates will bring in more clients—and more revenue. But that couldn’t be further from the truth.

Just last month, I watched a cleaning company slash their prices by 30% to “match the competition.” Here’s what happened next:

→ Revenue dropped 45%
→ Profit margins vanished
→ Their phone rang, but only with price-shoppers
→ Team morale plummeted

The lesson? Competing on price is a race to the bottom.

Elite service companies know better.

They charge premium rates and back them up with exceptional service. They don’t just clean floors—they deliver a seamless, professional experience. They don’t attract everyone, and that’s by design. They target clients who value quality, not those who just want a deal.

One of my clients, a high-end home service provider, raised prices by 40% last year. Scary move? Maybe. But here’s the result:

→ They lost the discount crowd
→ Premium clients flooded in
→ Revenue jumped 65%
→ Their team finally got paid what they’re worth

See, your pricing is a message. It tells the world how much you believe your service is worth.

Low prices say: “We’re just like everyone else, but cheaper.”
High prices say: “We’re better, and we know it.”

Which message do you want your clients to hear?

It’s not about gouging people—it’s about aligning your rates with the real value you provide. The extra time you spend getting it right. The quality of your tools and training. The trust you build with every job.

So here’s the truth:

Discount pricing attracts discount clients.
Premium pricing attracts premium clients.

Raise your prices, and you might lose a few low-budget callers.

But you’ll gain respect, loyal customers, better margins, and a happier team.

Sometimes, charging more is the fastest path to real growth.