As price rise season approaches, many small businesses feel the pressure to hold their prices down. There’s a fear that increasing prices will drive customers away, especially in tough economic times. But there’s an uncomfortable truth that needs saying:
Cheap prices don’t just attract more customers – they attract the wrong ones.
Cheap Prices Set the Tone of Your Business
When your prices are low, you’re not just selling a service. You’re sending a message.
Low prices tell customers:
- You’re competing on cost, not quality
- Your time isn’t especially valuable
- There’s room to negotiate, complain, or push boundaries
This is why the cheapest customers are often the most demanding. They expect premium service for bargain prices and feel hard done by the moment anything changes.
Broke Customers Are the Least Loyal
Customers who choose you solely because you’re cheap are not loyal to you – they’re loyal to the price.
When prices rise:
- They question every penny
- They compare you relentlessly to cheaper alternatives
- They are the first to leave
Ironically, these customers are also the ones most likely to:
- Pay late
- Argue over invoices
- Resist necessary price increases
Building your business around them creates a fragile income that collapses the moment costs go up.
Cheap Customers Cost More Than You Think
Low-paying customers often take up more time, energy, and emotional bandwidth than well-paying ones.
They:
- Ask for extras “just this once”
- Expect flexibility but offer none in return
- Drain morale and slow your business down
By the time you factor in admin, chasing payments, stress, and lost opportunities, these customers are often unprofitable.
Price Rises Expose Weak Foundations
Price rise time reveals whether your business is built on value or desperation.
If a modest increase causes panic among your customers, it usually means:
- They never valued your service properly
- Your pricing was unsustainable to begin with
- You trained customers to expect cheap, not good
A strong business can absorb price rises because customers understand why they’re paying more.
The Customers You Want Expect Prices to Rise
Good customers understand:
- Costs go up
- Experience has value
- Quality work isn’t cheap
They don’t enjoy price rises, but they accept them when:
- Communication is clear
- The service remains consistent
- They trust your professionalism
These are the customers who stay, refer you, and respect your time.
Now Is the Time to Reset
Price rise season isn’t just about adjusting numbers. It’s an opportunity to reset your business.
Ask yourself:
- Who am I really trying to attract?
- Am I pricing for sustainability or survival?
- Do my prices reflect my experience and skill?
Letting go of bargain hunters makes space for better clients, better work, and a healthier business.
Final Thought
Raising prices will always lose you some customers. That’s not failure – that’s filtering.
If your business relies on cheap prices to survive, it’s constantly one price rise away from trouble. But if your business is built on value, price rises become a normal, manageable part of growth.
Cheap prices attract broke customers.
Strong pricing attracts serious ones.
And serious customers are the ones who keep your business alive.