The Pricing Paradox: Two Sayings That Built My Business

Today I want to talk about something that causes many business owners to break into a cold sweat… price increases.

They’re everywhere right now.

Driven by rising commodity prices.

Wage increases.

Employer NI hikes.

The list goes on.

Food, retail and hospitality, especially, are being hit from all sides.

And yet, despite knowing all this, so many business owners (me included), still hesitate when it comes to putting up their prices.

Why?

Because it feels personal.

It feels risky.

There's a real mental block.

I remember when I first started taking over the reins in our family business.

I'd worryingly say to my dad: “If we put our prices up, people might stop shopping with us!”

And without fail, he'd say: “You can’t work for nothing.”

And in that regard, he was right.

Without profit, a business has no fuel.

No money for reinvestment.

No funds to keep improving.

No chance of staying cutting-edge.

But then, he'd hit me with a second piece of advice that completely contradicted the first: “Don’t kill the goose that lays the golden egg.”

That stuck too.

And so, over time, I began to use those two sayings – seemingly at odds with one another – as my pricing filter.

And, I’ve always found somewhere in the middle is usually about right.

Not too greedy.

Not too fearful.

Just fair – for you and for your customer.

That strategy has helped my business stay strong, profitable, and relevant.

And it’s allowed us to reinvest – in our people, in our premises and in our product.

Because when there’s no profit, there’s no progress.

And when there’s no progress… things begin to go stale.

So, if you're wrestling with price rises right now, just remember my dad's words of wisdom.

You can’t work for nothing, just make sure you don’t kill the goose laying the golden egg.

Somewhere in the middle is where the magic happens.

Have a great week.

Mark