Pumper: What’s another common pricing mistake?

Sjofors: Holding prices at the same level for too long, for fear of losing customers. To avoid making customers angry, the most effective rationale for raising prices is explaining that costs have gone up. You can say, ‘Look, we’ve been able to hold prices for five years … now I have to pass on a portion of my cost increases onto you.

Now, if there’s no ongoing relationship with a customer, you can raise prices tomorrow. But for long-time customers, frame it like this: We’ll raise prices next month, but if you promise to use us the next time you need service, we’ll hold the current price for one more visit.

It used to be that prices always went up in January, but that’s not the case anymore. But customers will be more accepting of price increases if you habitually raise prices at the same time each year. It doesn’t have to be a big increase—maybe just a few percent a year. That’s much better than holding off on any price increase for five years, then suddenly finding you need to raise them 20 percent at one time, just to survive.