Pricing Power: The Secret Weapon of Profitable Businesses

What Is Pricing Power?

The ability to charge what you're worth—without losing customers.

Without it, you're running a charity, not a business.

The 1% Rule:

A 1% price increase = 11% profit boost (if volume stays constant).

Strategy 1: Value-Based Pricing

Stop pricing based on time or competitors.

Price based on the financial impact of the problem you solve.

Strategy 2: The Confidence Test

If you're not losing 10–20% of clients on price, you're undercharging.

Apple is a masterclass in this.

Strategy 3: Anchoring and Bundling

Lead with your premium offer.

Use high-medium-low pricing tiers to make your middle option shine.

Action Steps This Week:

Calculate the value you deliver.

Raise your prices 10% (for new customers).

Use price anchors in your offer structure.

Quote of the Episode:

“If you’re not occasionally losing customers to price, you’re undercharging. Period.”

🔗 For more leadership insights and tools to grow your business, visit:
https://www.deliberatedirections.com