“How can a 5% increase add 50% to my bottom line?” Utter bollocks, I hear you scream, which is fair enough, on the surface, it does sound like LinkedIn maths.
But stick with me. This WORKS.
Let’s keep this painfully simple and painfully real. The Very Normal Small Business Scenario.
You run a small business turning over £200,000 a year. You’re doing alright, but you don’t have the Aston Martin ordered just yet, but maybe you could.
Let’s walk through this. Your net profit is 10%.
That means:
• On your £200,000 turnover.
• You make £20,000 net profit (10%).
• That’s £20,000 that Rachel from accounts is sharpening her tax calculator for.
So far, so sensible.
Now for the “Magic” (That Isn’t Magic). Let’s say you increase your turnover by just 5%. That takes you from £200,000 to £210,000, doesn’t seem a lot, does it?
PLUS, a 5% increase for clients isn’t a lot. Is it?
That’s a nice £10,000 increase on turnover. Nothing wild, no viral videos, no working Sundays, no LinkedIn “grind harder” nonsense… just a simple, easy 5% increase. It’s nothing.
Now here’s the important bit most business owners miss…There’s been no increase in your costs.
• Same clients
• Same hours
• Same team
• Same van, tools, software, insurance, stress levels
So that extra £10,000? That’s not just turnover money. That’s PURE profit.
Let’s Do the Uncomfortable Maths, just in case you don’t believe me.
Original profit: £20,000
New profit: £30,000
That’s a 50% increase in profit
from a 5%
increase in revenue. Rachel from accounts now LOVES YOU.
And to achieve this boost in profits you didn’t hire anyone new, take on extra work, burn out with extra work, or sell your soul just to get the sale.
You simply charged slightly more for the work you were already doing.
Why This Feels Wrong (But Isn’t). Most small business owners are wired to think: “If I want more money, I need more work, I need to work harder”.
That means - More leads, more quotes, more jobs, then more hours. That in turn means - More chaos, more admin, more mistakes, more stress, and more being busy without being profitable.
Price increases feel scary because they’re visible, yes everyone remembers the one
customer who moaned… not the 99%
who didn’t notice. That one was moaning anyway BTW.
But here’s the truth, most businesses don’t have a sales problem. They have a pricing problem.
Here’s The Question You’re Probably Avoiding. When was the last time you increased your prices? Not thought about it, or meant to, you actually did it. If the answer is, “A few years ago…” , “Before COVID…”, “Never…”, “I can’t, my customers won’t pay it…”
Then congratulations, you’ve just found one of the fastest ways to improve your business without adding more pressure. 5% more on (prices) = 50% more in (pocket)
You know what to do... crack on
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