Price is What You Pay, Value is What You Get

September 29, 2022

Hello Everyone:

Inflation is all over the place if you have not noticed.  Across the board, everyone is talking about the cost of products and services.  If you are a business owner or leader, you may think that any sizable price increase of your product or service will result in lost customers.  However, that does not have to be the case.

Price increases are expected right now, but that does not mean that you get into the price gouging game (remember, pigs get fat and hogs get slaughtered).  Staying at least on par with market conditions is perfectly acceptable.  However, how much should you increase your prices and what should you tell your customers/clients?

Below are some tips that I have found helpful throughout my career:

  • To see if a price increase is needed, take a look at your competitors and see where you stand versus them.
  • Review your costs and see how much they have increased.  This could be a gauge of the amount you should raise your prices.
  • Look at your own financials and see where your profit margins stand versus prior periods.  Sometimes, your margins have narrowed.  A price increase may be needed to get your company back to more normalized levels.
  • Once you have settled on a price increase, make sure your entire team is notified of the increase and the reasons behind it.
  • Let your customers/clients know directly and well in advance.  A letter or email to clients with a follow up phone call to key customers is recommended.

Clear, concise and timely communication will be the best course of action with your team and your clients when looking to change your pricing.

Below are some additional insights on this commonly misunderstood topic:

Lastly, I will leave you with this thought as you think through your next pricing action:

“Price is what you pay and value is what you get”.

Other items of interest:

Helpful Resource Pages

As always, please don’t hesitate to email myself (, Andy Miller (, Christian Miller (, Erik Spurlin ( or anyone in our office with questions or comments.  

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