Rising costs squeeze margins, but when is the right time to raise prices? Our experts reveal the signals that say customers are ready.
In this week’s edition of Let’s Talk, our experts reveal the critical signals that indicate it’s time to raise prices, and how to do it without damaging customer relationships.
From overwhelming demand to rising supplier costs, business advisers share practical strategies for navigating one of the toughest decisions facing Australian small business owners in 2026.
Let’s Talk!
Sonia Shwabsky, President, Kwik Kopy
“Implementing price increases is more about signals rather than gut feel, and they usually present in a practical way. Supply costs, including machinery, materials, energy and salaries increase. At the same time, client expectations on quality are always at a high level. When customers consistently approve quotations swiftly, return regularly and value our recommendations beyond just a printing task, it becomes evident that the relationship is grounded on trust instead of pricing.
The main key is to always prioritise value when increasing prices. We focus on outcomes that enable clients to look professional and attract their customers’ attention. Clear communication and transparency are essential. Give enough notice, provide reasonable grounds and emphasise the quality they will continue to receive. Timing is also of importance, as delayed or reactive increases are usually seen negatively. Align prices with service excellence and quality, and customers will understand and remain loyal.”
Darrell Hardidge, CEO & Founder of Saguity and author of Having the #1Reputation
“Most business leaders worry about raising prices because they assume price sensitivity is the same as trust. But it isn’t. The question isn’t can you raise prices. Ask yourself whether your reputation has earned the right to do so.
The strongest signal that it’s time to raise prices is behaviour. When customers stop questioning your recommendations, when they value your thinking as much as your delivery, and when conversations shift from “how much?” to “how soon?”, then you know you have their trust.
Another signal is resilience. If customers stay loyal during small mistakes, delays, or changes —not because they’re trapped, but because they believe you act in their best interests — your reputation is working. Trusted businesses are forgiven more quickly and challenged less aggressively on price.
And finally, the most telling signal is referrals. When customers actively recommend you, they are putting their own reputation on the line.
In my latest book Having the #1Reputation, I explain how companies that measure trust properly know when the market will support higher prices. It’s because they’ve earned not just approval but confidence as well. Reputation tells you when the market is ready, if you’re listening.”
Suzi Dafnis, Host of the HerBusiness Podcast
“Most business owners wait too long to raise their prices because they’re worried about rocking the boat.
But you can’t ignore the signals that it’s time.
The strongest sign? Your capacity is tapped out. If you’re booked out, turning away enquiries, or feeling stretched to deliver the same level of service, your pricing hasn’t kept pace with your value.
Another clear sign is emotional: when you feel resentful, tired, or underpaid for the impact you’re delivering, something is out of alignment.
Listen to your clients. When they stay longer than expected, refer you easily, or comment on how much your work has helped them, they’re telling you the value is higher than the price suggests.
Raising prices doesn’t have to upset existing clients — especially when it’s handled thoughtfully.
Honour your current agreements where appropriate, communicate clearly and early, and anchor the increase to outcomes, not hours.
Pricing isn’t just about charging more for the same work; a well-crafted offer makes it easier to charge more by clearly linking what you do to the outcomes clients value most.”
Annette Densham, Writer, Award Writing Services
“If you’re booked out, juggling leads, or saying no more than you’d like, your pricing is doing you a disservice. Being busy isn’t proof of success, it’s often a signal that your market may be too wide. If what you do is highly valued in the market, your prices should reflect this because it removes the tyre kickers and the ones looking for bargains (they’re often the hardest people to work with – they pay less and expect more). When demand keeps rising and your capacity doesn’t, the market is giving you a nudge. By charging more with the clients you want and love to work with, you can be more discerning about your workload. Do less for more – that’s building a more sustainable business. If your thinking is sharper, processes more refined, and the results are stronger than they were a year ago, charging the same rate doesn’t reflect your growth. As your experience compounds and your skill deepens., your pricing reflect this. The biggest sign you need to change your prices is resentment. When you look back over what you’ve accomplished for clients, deliver above and beyond and their businesses are improving, and you feel that twinge in your belly that feels like you are being undervalued, then it is time for price rise. That feeling turns into burnout if you ignore it. But do it with grace, outline the results you have achieved for them and the outcomes they’ve enjoyed. But never apologise for raising your prices.”
Fabrizia Roberto, Founder, FRactional CMO
“Raising prices is one of those decisions that feels emotional, even when it shouldn’t be. Most business owners delay it far too long, not because the numbers don’t justify it, but because they’re worried about upsetting loyal customers. In my experience, the signals are usually clearer than we like to admit.
The first signal is internal: your costs have gone up and you’re absorbing them quietly. I see this clearly in the running of my tea brand. Ingredient costs increase, supplier pricing shifts and maintaining quality requires better, and more expensive, inputs. At the same time, as a fractional CMO, my own costs have risen too: marketing tools, software, contractors and the time required to deliver at the level clients expect. If your margins are shrinking but your effort and standards aren’t, that’s not sustainable and it’s a strong indicator pricing needs to move.
The second signal is external: the market has moved. If competitors offering similar products or services are charging more and you haven’t adjusted in years, you’re likely underpricing. Pricing isn’t just about what feels comfortable, it’s about where you sit in the market and what your offer is worth today.
The final and most important signal is value. If you consistently deliver excellent outcomes, better quality or stronger ROI, price increases rarely damage relationships. In my teahouse, customers understood higher prices when it meant increasing the quality of the food and drinks, the experience improved and quality was non-negotiable. In my consulting work, clients stay because they trust the value they’re getting: clearer strategy, better decisions and real commercial impact.
If the cost-to-value ratio still works in your client’s favour, price isn’t the issue. Trust is. And if you’ve earned that trust, a well-considered price increase won’t upset your clients, it will simply reflect reality and allow you to continue running a thriving business.”
Shani Taylor, CEO, ScaledUp
“It may be time to raise your prices when you notice feelings of resentment creeping in, when you’re still serving fully but feel you’re consistently doing more than what you’re being paid for. Another clear signal is market feedback, such as potential clients saying “wow, that’s cheap,” or existing clients sharing that they would have paid more because of the value you provide. When raising prices, you can do so without upsetting current clients by honoring their existing rate until their terms come up for renewal. At that point, communicate ahead of time that you love serving them, would love for them to continue, and clearly outline your updated pricing. Be prepared that not all clients will stay, and that’s okay, those who leave are choosing a different standard and are no longer the right fit. It’s essential to hold your standards, because if you wobble, others will too. While scarcity can tempt you to cater to frustrations around price increases, keeping clients on outdated pricing and service models will slow business growth. Raising prices is easier when you’re in control of your pipeline; if your business relies only on referrals and repeat clients without knowing how to replace them, you’ll be driven by their decisions instead of your own. Control comes from knowing where to find buyers, not just leads.”
Jake Shaw, Sr VP Sales & Operations, PACK & SEND
“Raising prices without upsetting existing customers usually comes down to paying attention to the signals already in front of you. One of the clearest is when demand stays strong even as you find yourself discounting less. If customers are accepting quotes more quickly, pushing back less on price, or becoming more reliant on your service, it’s often a sign your pricing hasn’t kept pace with the value you’re delivering.
Capacity is another important indicator. When teams are stretched, lead times start to creep out, or you’re prioritising work based on margin rather than demand, a price increase can actually help protect service quality. Cost pressures also matter, particularly when clients are experiencing similar increases across their own supply chains — those conversations are easier when they reflect broader market reality.
Many businesses also discover new customers are already paying more than long-standing ones. That gap is often the safest place to start. The key is to communicate early, be clear about the reasons, and link any increase to value and sustainability, not just margin. When handled well, sensible price increases rarely damage strong customer relationships.”
Morgan Wilson, Founder & Director, creditte accountants & advisors
“Most business owners wait too long to raise prices.
The first signal is simple: demand is strong and clients are saying yes without much resistance. If your pipeline is healthy and your calendar is full, that’s usually the market telling you your pricing is behind your value.
The second signal is margin pressure. If costs have risen, your team is stretched, or you’re working harder for the same profit, that’s not a pricing problem. It’s a sustainability problem. We see this all the time. Holding prices steady to “keep everyone happy” slowly erodes confidence and capacity.
The third signal is capability growth. If your service has improved, outcomes are stronger, or you’re delivering more strategic value, your pricing should reflect that.
The key is communication. Don’t apologise. Explain the value, give notice, and position it as part of maintaining quality.
Most reasonable clients understand. The ones who don’t are often the least profitable anyway.
Building a better business means charging what you’re worth.”
Ashish Shetty, Founder & Director, Digitalscouts
“One of the strongest signals it may be time to raise prices is when demand consistently exceeds capacity. If your calendar is full, delivery timelines are stretching, or you are regularly turning away work, pricing is likely no longer aligned with the value being delivered.
Another clear indicator is a change in the type of work you are doing. When long standing clients remain profitable and relatively easy to support, but newer clients require more hand holding, scope clarification, or ongoing adjustments, it often means pricing has not kept pace with rising expectations or complexity.
Margin pressure is another important signal. If costs have increased across tools, people, or delivery effort, holding prices steady can quietly erode profitability and limit your ability to maintain quality over time.
Raising prices without upsetting existing clients comes down to communication and timing. Share the rationale early, link the change to outcomes and service quality, and be deliberate about how increases are applied. Many businesses choose to treat long term clients differently from new engagements.
When price increases are considered, clearly explained, and tied to value, most clients see them as a natural part of a healthy and growing business.”
Maria Kathopoulis, CEO & Chief Marketing Officer at UNTMD Media
“If close rates remain high, pipelines stay full, and delivery feels stretched, you’re underpriced. Research from Price Intelligently shows that a 5% price increase can lift profits by 25%, assuming value is communicated clearly.
Clients don’t object to higher prices. They object to unclear value.
The right time to raise prices is when outcomes are predictable and confidence is high. Tie increases to speed, certainty, or expanded scope, not inflation.
Rxisting clients should feel protected. New pricing applies forward, not backward.
Pricing power is the single most important decision in evaluating a business. It’s also one of the hardest to claim without conviction.”
Geoff Main, Marketing Director, Founder, Passionberry Marketing
After inflation and margin pressure, leadership teams often wonder if they can raise prices without destabilizing demand. Successful CMOs look for market signals rather than starting with cost increases.
Capacity pressure is a primary indicator. When teams reach full utilization without discounting, price becomes a disciplined lever to balance outpaced delivery. Retention strength is equally vital; if customers expand usage and renew without resistance, there is usually price headroom. Conversely, renewal friction suggests a value perception issue, not a pricing opportunity.
Category context and brand strength also dictate power. Being priced materially below comparable competitors may unintentionally signal a mid-market brand. However, in discretionary categories where consumers are trading down, increases can accelerate share loss. In professional services, raising prices can serve as a segmentation tool, reducing the high-friction clients often associated with lower-priced retainers.
Structural indicators like switching friction—deeply embedded workflows—increase price tolerance while trust remains high. Ultimately, customers pay for outcomes and reduced risk, not internal costs. Pricing power belongs to businesses with strong referrals and visible value expansion. The CMO’s discipline is recognizing when these market signals align and acting with confidence.
Brad Eisenhuth, CEO, The Outperformer
“If you are more concerned with upsetting your clients to avoid discomfort than securing your business viability, that’s a clear signal that you need to recalibrate. If you don’t put your business first, you inevitably end up serving customers who are neither appropriate nor profitable.
If your business is simply not profitable enough and your margins are too thin to weather a storm, you are exposing yourself to unnecessary risk.
On the other hand, if demand is high but profits are low, that’s a clear indicator that your customer value is obvious, making a price rise a sensible strategic move.
My advice is to reverse engineer the objective. You want customers who utilise your service to effect tangible outcomes and pay the appropriate price to create a win-win. If a client is not ticking both boxes, you have a structural problem, not just a pricing one.
If a price correction causes a client to leave, they likely weren’t the right fit for your future state anyway. The question isn’t how to avoid upsetting them, but how to exit non-fit clients safely so you can focus on those who value the results you deliver.”
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