Pricing Panic? Here’s How to Raise Your Prices Without Losing Sleep (or Customers)

Let’s talk FACTS before feelings…

In 2025, tariffs on imported goods- including ingredients, packaging, and even equipment- have quietly started driving up costs across the board. And if you’ve been feeling like your expenses have crept higher while your profits stay the same (or shrink)... 👀 You’re not imagining it.

Pair that with rising wages, increased rent, higher utility bills, and inflation, and it’s no wonder so many small business owners are saying:

“I’m working harder than ever… but I’m making LESS.”

Friend, something’s gotta give. And that something? It’s probably your prices.

But before you spiral into a panic or people-pleasing mode, you’re not going to raise prices blindly. You’re going to do it with clarity, confidence, and strategy.

Here’s how…

7 Steps to Take Before Raising Your Prices

1️⃣ Identify Your Ideal Client

Know WHO you’re speaking to first. This doesn’t mean you have to announce it to him/her! It just means you have to have a clear understand of WHO exactly your ideal client is, and if you’re speaking to and attract the RIGHT, ideal client for what you offer.

If you NEED to raise your prices drastically, you may need to go after a NEW, MORE AFFLUENT clientele. Your pricing should speak to the ones who:

• Respect your craft
• Trust your process
• Don’t flinch at quality

Even if your price increase is fairly modest, expanding your target market a bit to a more upscale customer is a smart way to offset the customers you may lose.

Remember: You’re not raising prices to alienate the customers you do HAVE. You’re raising them to attract the RIGHT ones.

2️⃣ Re-Assess Your Branding

If your prices are going up, your brand needs to reflect that level of value.

Ask yourself:

• Does your brand look HIGH-END?
• Does it look EXPENSIVE?

If you’re not putting your BEST food forward with the LOOK and FEEL of your business, then you will have a tough time attracting clients that are naturally attracted to high-end brands and quality items. Consider how you interact with them, the language, the use, the images/photography you post, the thought that goes into how you display and present your products, consider everything that customers SEE!

This isn’t about perfection- it’s about alignment. BUT before you raise your prices, definitely consider raising your standards to elevate your game!

3️⃣ Create an Ideal Experience

Product + presentation = perceived value. Experience is absolutely EVERYTHING to a customer! There are countless examples of companies that are NOT necessarily “high-end” that offer an unbelievable experience! (Ex: Chewy! The pet food company! Just Google what they do for their customers when their pets sadly pass away!)

Your standards and expectations are much different when you shop at Walmart vs. Louis Vuitton. Which brand are you aiming to emulate? Does your customer’s experience match the experience level or a high-end luxury, custom-made brand, or a VALUE brand? You won’t be able to get your customers to believe that your products are worthy of higher price points if you don’t offer a differentiated experience.

So, what small touches can you upgrade? Think:

• Beautiful, branded packaging
• Streamlined ordering experience
• Fast, exceptional, communication, and customer care

Customers pay MORE when they feel valued more.

4️⃣ Check Your Emotions

Let’s be real: the biggest obstacle to raising your prices is usually... YOU. Be sure to properly price your products to meet your BUSINESS NEEDS/GOALS. DO NOT price them according to how much you FEEL they should be.

FACT: 46% of businesses fail in the first year due to ONE major cause: INCOMPETENCE. There are many reasons why a business owner would be categorized as “incompetent”, but the #1 reason is EMOTIONAL PRICING!

So what does that mean???

Emotional pricing means pulling a price out of the sky with no rhyme or reason for HOW or WHY you arrived at that price. You just picked it because “it seemed” like a “fair price.” Which is COMPLETELY WRONG because what you would pay for a custom-made creation isn’t what someone else would pay! This is literally SELF-SABOTAGE.

It also means pricing based on someone else’s costs (which is a TERRIBLE idea because you have NO CLUE if they are even accurate or profitable or HOW they arrived at that number!) It also means failing to do the math for YOUR BUSINESS NEEDS. Not knowing all your business costs/expenses, or what you yourself NEED to actually make in order to help support your family or sustain a healthy, thriving business.

(👉🏼 Why is ONE of the BIGGEST features of my new app! Get on the waitlist NOW to be amongst the first group to beta test it and get founder pricing! It’s seriously a GAME-CHANGER and you’re gonna want it… NOW!)

5️⃣ Be Confident When Presenting Your Prices

Friend, you need to STAND ON BUSINESS when it comes to your prices. No going back-and-forth, negotiating with clients, or hesitation when someone objects to your price. Communicating with your customers in a confident way is the single FASTEST way to get people to buy into whatever it is you’re selling. Remember what SETS YOU APART from the competition:

• Years of experience
• Degrees or certifications
• Mastery of ___
• Awards/Recognition

Also consider the RAVE reviews from past clients, the differentiated experiences YOU offer that others don’t, the unique or high-quality ingredients you use, the fact that you’re licensed/insured, or registered with Yelp, the Better Business Bureau, a wedding referral website, etc.

6️⃣ Consider Reducing Sizes or Using Clever Bundling

Sometimes a “price increase” isn’t about the number- it’s about the offer.

Restaurants are GREAT at this! Instead of a $15, eight-ounce macaroni-and-cheese entree, they’ll reduce it down to a four-ounce appetizer for only $9. It just sounds better! So what could you sell in a smaller amount to help combat higher price points?

Ex: If you sell a dozen cinnamon rolls for $20 and want to raise the price to $25 a dozen to increase your profit margin percentage (which would break down to $2.08 per cinnamon roll), try creating a SMALLER package, then raising the price even more!

One cinnamon roll for $3 or 2 for $5. It just sounds better and cheaper! (Even though it’s more expensive and drastically increases your profit margin percentage!)

Work smarter, not harder.

7️⃣ Add Benefits and Perks

When customers feel the upgrade, they understand the price. Customers are FAR more likely to accept higher prices if they’re getting something extra in the long run. What could you throw in with your current product or service that would cost you little or nothing but would result in a HIGHER, perceived value to the customer?

Try:

• Loyalty discounts
• VIP access to specials
• A special gift box or clever packaging.
• A professional photo of their cake emailed to them for them to share
• Free samples or small add-ons with large orders

Little perks go a long way in reinforcing the value shift.

BONUS: Add (or Raise) Fees Where It Makes Sense

Stop eating costs that your business can’t afford to absorb.

Rush fees, packaging fees, delivery charges- these are standard in big business. It’s time they’re normalized in yours, too.

Don’t Just Raise Your Prices… Review.

Let’s circle back to those tariffs and rising costs for a sec.

This isn’t just about “charging more.” This is about knowing your numbers so you can pivot smart and survive long-term. Pivoting doesn’t automatically mean “raising your prices.” You pivot your OFFERS, your business model, your ingredients, etc.

Before you raise anything, pull out that spreadsheet (or wherever you’re TRACKING your expenses {if you don’t have a tracking system I HIGHLY recommend getting on the waitlist for my new app here!}) and ask:

• What are my actual expenses this month?
• What is my profit per product?
• Where am I leaking money?
• What can I cut, streamline, or rework?

Because price increases aren’t always the first solution, but they are often the most necessary one.

Final Word: Raise Your Prices, Protect Your Peace

You started this business for freedom, for more income, or even for impact, not to grind yourself into the ground.

So take these steps. Own your value. And raise your prices like a CEO who’s building something sustainable, scalable, and SUCCESSFUL!

P.S. Once again, I HIGHLY recommend getting on the waitlist for my new business app! This app is a TOTAL SOLUTION to all the challenges we face as small business owners (pricing included!) Get on the list here!