Author: The Chief Alchemist

  • AI Isn’t Killing Web Design Agencies. It’s Exposing the Ones With Weak Offers.

    AI Isn’t Killing Web Design Agencies. It’s Exposing the Ones With Weak Offers.

    I recently posted on LinkedIn about the pressure AI is putting on web design agencies. It generated a lot of discussion, and some of the responses were more interesting than the original post. So I wanted to go deeper on this, because there’s a bigger point here that matters well beyond web design.

    Let’s start with what prompted it.

    The £299 WordPress site is already under pressure

    There are web design agencies across the UK right now selling WordPress brochure websites from around £299. Some charge more, some less, but the point is that there’s a huge market of agencies whose core offering is: give us some money, we’ll build you a website.

    The problem is that AI website builders like Wix, Squarespace, Webflow, and a growing number of newer tools can now generate a complete, responsive site from a text description. In many cases, the result is perfectly adequate for a small business that just needs a functional online presence. The cost? Somewhere between free and £30 a month.

    That’s not a future scenario. That’s now.

    When I shared this observation on LinkedIn, the responses fell into some predictable patterns, and a few that were genuinely useful.

    The defensive response: “AI websites are terrible”

    Several web developers pushed back hard. The argument was essentially that AI-built websites are poor quality, have no real UX thinking behind them, and that the whole “agencies are doomed” narrative is overblown.

    There’s some truth in that. AI-generated sites can be generic. They don’t understand your brand the way a human designer does. The code isn’t always clean.

    But here’s what that argument misses: the quality bar for a basic brochure site is lower than most web professionals think. A local plumber doesn’t need a custom design system. They need a site that loads fast, looks professional enough, shows their phone number clearly, and has some decent reviews on it. AI can do that already, and it’s getting better fast.

    The defensive response is understandable. Nobody likes being told that what they sell is becoming commoditised. But denial isn’t a strategy.

    The people who confirmed it’s already happening

    More telling were the comments from people in the industry who shared real examples. One commenter described quoting against agencies selling basic websites for $500 to $800, only to find the same clients asking why they’d pay that when AI tools can generate something in 30 seconds.

    Another pointed out that hiring a developer for a brochure website will soon be a thing of the past, and that the focus needs to shift to outcomes, problem solving, expertise, and personal relationships.

    These aren’t predictions. They’re observations from people watching it happen in their own businesses right now.

    The real point: AI isn’t replacing agencies. It’s exposing weak offers.

    One comment summed it up better than I could: “This isn’t about AI replacing agencies. It’s about AI exposing weak offers. That’s a very different problem.”

    And that’s exactly right.

    If your web design agency sells “a WordPress website” as the product, you’re selling a deliverable. A thing. And when AI can produce a comparable version of that thing for a fraction of the cost, your pricing collapses. It doesn’t matter how good your code is, how clean your CSS is, or how many years of experience you have. If the client can’t tell the difference between your output and what AI produces, you have a positioning problem, not a quality problem.

    The agencies that will thrive are the ones selling something AI genuinely can’t replicate: strategic thinking about what the website needs to achieve, deep understanding of the client’s customers and market, conversion expertise, ongoing optimisation based on real data, and a trusted advisory relationship where the agency is a partner rather than a supplier.

    That’s the difference between selling ingredients and selling the meal. You can check out a service I provide called a Value Assessment HERE that goes into this in more detail.

    The harder question: what about AI doing strategy too?

    One of the more challenging responses raised an interesting point. What happens when AI can plug into heatmaps and analytics, advise on why visitors aren’t converting, build strategy around commercial goals, and proactively adapt based on performance data?

    It’s a fair question, and the honest answer is that AI is already doing some of this. Tools exist that can analyse conversion paths, suggest layout changes, and run multivariate tests automatically.

    But there’s a distinction between analysis and judgment. AI can tell you that your contact page has a 90% bounce rate. It can even suggest changes. What it can’t do is sit across the table from your client, understand that their real problem is that they’re targeting the wrong customer segment entirely, and help them rethink their go-to-market strategy.

    The client doesn’t necessarily care whether you’re using AI tools in the background. They care about results. If you’re the person who helps them understand why their business isn’t growing and what to do about it, you’re a trusted partner. If you’re the person who builds them a website and sends an invoice, you’re a supplier who’s about to be replaced by software.

    The analogy that landed: Premier Inn vs The Dorchester

    Another commenter drew a useful comparison between functional purchases and emotional ones. A Premier Inn room does the job. It’s clean, consistent, and reasonably priced. The Dorchester is a different product entirely. You’re not just paying for a bed; you’re paying for the experience, the status, and the relationship.

    AI website builders are the Premier Inn of web design. They’ll do the functional job well enough for most basic needs. The question for agencies is: are you selling Premier Inn rooms and trying to charge Dorchester prices? Or have you genuinely built a Dorchester-level service?

    Most agencies are somewhere in between, and that’s the uncomfortable bit. They’re charging more than the AI tools but not offering enough differentiation to justify it. That middle ground is exactly where margins get squeezed the hardest.

    What this means if you run a web design agency

    If you’re reading this and recognising some of these patterns in your own business, here are a few things worth considering.

    First, look honestly at what you’re actually selling. If your proposals are structured around deliverables (homepage design, 5 inner pages, contact form, SEO setup), you’re selling ingredients. That’s the offer AI can undercut. Restructuring your proposals around business outcomes (increased lead generation, improved conversion rates, measurable revenue impact) changes the conversation entirely.

    Second, think about your client relationships. Are you a supplier who gets a brief, builds a thing, and moves on? Or are you a partner who understands the client’s business, tracks what’s working, and proactively advises on improvements? The first role is replaceable. The second isn’t.

    Third, consider your pricing model. If you’re still charging fixed project fees for website builds, every improvement in AI tools puts downward pressure on what you can charge. Retainer-based pricing tied to ongoing value, where you’re paid for the outcomes you deliver rather than the hours you work, creates a much more defensible business.

    And finally, stop seeing AI as the enemy. The agencies that will do best are the ones using AI to speed up the commodity parts of their work (initial layouts, first-draft copy, code scaffolding) while investing more time in the strategic, relationship-driven work that AI can’t do.

    It’s the same problem across all service businesses

    Web design agencies are just the most visible example right now because the AI tools are so tangible. You can literally watch an AI build a website in real time. It’s dramatic and it gets attention.

    But the same dynamic is playing out across every service business where the core offering can be described as a deliverable. IT support, bookkeeping, marketing, recruitment, consulting. If you can reduce what you do to a checklist of tasks, AI will eventually do those tasks cheaper and faster.

    The businesses that survive and grow will be the ones that have moved beyond deliverables to outcomes, beyond supplier relationships to trusted partnerships, and beyond cost-based pricing to value-based pricing.

    That’s not a comfortable message, but it’s an honest one.

    Want to know where your business stands?

    I’ve built a free assessment specifically for service businesses that want to understand how defensible they are against AI disruption. It takes about five minutes, and you’ll get an immediate score across four areas: replaceability, pricing resilience, supplier vs trusted partner positioning, and adaptability.

    No fluff, no sales pitch in disguise. Just an honest look at where you’re strong and where the gaps are.

    Take the AI-Proof Assessment here.

  • 6 things every MSP should fix to improve profitability and business valuation

    6 things every MSP should fix to improve profitability and business valuation

    If you’re running an MSP and you’ve ever thought about improving your margins, or even considered what your business might be worth if you sold it one day, there are a handful of things that make an outsized difference.

    None of them are complicated. But most MSPs I work with aren’t doing all of them, and some aren’t doing any.

    Here are six that will move the needle.

    1. Move away from break-fix

    This one comes first because it matters most.

    If the majority of your revenue still comes from ad-hoc break-fix support, it’s going to hold back both your profitability and your valuation. Buyers and investors want predictable, recurring revenue. They want to see a business that generates income whether or not something breaks on a Tuesday afternoon.

    Break-fix revenue is unpredictable by nature. It’s hard to forecast, hard to staff for, and it positions you as reactive rather than strategic. If you’re still predominantly break-fix, transitioning to managed services contracts should be your number one priority.

    2. Get customers onto annual (or longer) contracts

    Monthly rolling agreements are a step up from break-fix, but they’re not great for valuation purposes either. A buyer looking at your business wants to see committed, contracted revenue that’s going to stick around.

    The higher your percentage of clients on 12-month or longer contracts, the more predictable your revenue looks, both to a potential buyer and to your own cashflow planning. It also gives you a much stronger foundation for planning investments in your team and technology.

    If you’re nervous about asking clients to commit, consider this: most clients who are happy with your service won’t bat an eyelid at an annual contract, especially if there’s a small incentive to do so.

    3. Track support margins and project margins separately

    This is one of the most common gaps I see.

    Most MSPs have one set of accounts that blends everything together. Support revenue, project revenue, all the costs, one big number at the bottom. The problem is, you can’t tell whether your recurring support business is genuinely profitable on its own.

    And that matters, because when someone values your business, they’ll look at the recurring support revenue with a much higher multiple than project work. Project revenue is lumpy and unpredictable. Support revenue, if it’s profitable and growing, is where the real value sits.

    Separating these out doesn’t require a new accounting system. It just requires some discipline in how you allocate costs and report your numbers. Once you can see both margins clearly, you’ll make better decisions about where to focus, what to price, and what to fix.

    4. Know your per-customer profitability

    Not all customers are equal. Some are profitable, some are breaking even, and some are actively costing you money once you factor in the support time, the scope creep, and the constant back-and-forth.

    Most MSPs have never properly worked this out. They have a general sense of who the “difficult” customers are, but they haven’t put actual numbers against it.

    Until you do, you can’t make good decisions about pricing, retention, or where your team’s time is best spent. You might find that your largest customer by revenue is actually one of your least profitable. Or that a smaller client you’ve been neglecting is quietly delivering excellent margins.

    This is also where customer scoring becomes useful. By rating clients across factors like profitability, payment behaviour, cultural fit, and growth potential, you can make objective decisions about who to invest in, who needs a pricing conversation, and who might be better served by someone else.

    5. Stop selling a menu of services

    Too many MSPs present their services like a restaurant menu. Network monitoring, backup, helpdesk, security, cloud services, all listed out and priced individually. The client picks what they want, compares your menu to someone else’s, and chooses on price.

    That’s commodity positioning, and it kills your margins.

    Instead, package your services around the outcomes your clients actually care about. They don’t want “network monitoring” as an abstract concept. They want their systems to work reliably so their team can focus on their jobs. They want to know they’re protected and that someone competent is handling the technology so they don’t have to think about it.

    When you sell outcomes rather than ingredients, the price conversation changes completely. You’re no longer being compared line-by-line against a cheaper competitor. You’re being evaluated on the value of the result you deliver.

    6. Build in an annual price review process

    If you haven’t raised prices in two or three years but your costs have increased by 15-20% (salaries, licensing, tools, insurance, the usual), you’re effectively earning less every year. Your margins are being quietly eroded and most MSPs don’t even notice until it’s painful.

    Building an annual pricing review into your business isn’t just good practice, it’s essential. And communicating it properly makes all the difference. Give clients proper notice, explain what you’re investing in, focus on the value they continue to receive. Don’t apologise for it.

    Most clients expect annual increases. The ones who leave over a reasonable adjustment probably weren’t great clients to begin with.

    Where does your MSP stand?

    Most MSPs I work with are technically excellent. They deliver great service and their clients genuinely value what they do. But they’re competing as if they’re a commodity, because they haven’t addressed the positioning, pricing, and packaging issues that separate a good MSP from a premium one.

    Small changes in these areas can make a 30-50% difference to profitability. And if you’re ever thinking about selling, they can significantly increase what your business is worth.

    I’ve built a free 5-minute assessment that scores your business across five key areas: value positioning, pricing power, growth engine, operational leverage, and technology adoption. It’ll show you exactly where you’re strong and where you’re leaving money on the table.

    👉 Take the free assessment here

    And if you’re an MSP with £500k+ in revenue and you already know you need to address some of these issues properly, the Value Transformation Assessment might be a better starting point. It’s a structured review of your business across ten dimensions, with specific recommendations and a clear implementation roadmap. It’s how most of my client projects begin.

  • Should you ever fire a customer?

    Should you ever fire a customer?

    As business owners, we often celebrate never losing a customer as a badge of honour. But what if I told you that a healthy amount of customer churn is actually essential for business growth?

    The Loyalty Myth

    I recently sat down with a business owner who proudly claimed, “We’ve never lost a customer.” Initially, this sounds impressive, a testament to exceptional service and client satisfaction!

    But as our conversation progressed, a different picture emerged.

    “Do you enjoy working with all of your customers?” I asked.

    “Well, we have a few that are quite difficult,” they replied hesitantly.

    “Do those customers take up a lot of your time?”

    “Oh, yeah, they’re the worst. The team can’t stand them. They’re always asking for free services or discounts, and nothing is ever good enough.”

    “Now, do you regularly increase prices for these customers?”

    “No,” they admitted. “They push back on everything. To be honest, I just can’t face the argument.”

    By the end of our discussion, we’d uncovered an uncomfortable truth, this business was holding onto customers who:

    • Were difficult to work with
    • Didn’t appreciate their services
    • Drained profitability (through resistance to price increases)
    • Tied up disproportionate team time
    • Damaged overall team morale

    The Value of Some Customer Churn

    Unless you’re extraordinarily lucky, you’ll never have 100% of customers who are a perfect fit. Customer relationships naturally evolve, their needs change, your business grows, key contacts move on.

    This is why having a structured approach to evaluating customer relationships is crucial. Some customer departures should be celebrated, not cried over.

    From Subjective to Objective Analysis

    The challenge most businesses face is the subjective nature of customer assessment. Different departments often have conflicting perspectives:

    • Sales sees the relationship one way
    • Service delivery another
    • Finance yet another

    What’s needed is an objective framework, one that transforms gut feelings into strategic decisions.

    Customer Scoring: The Objective Alternative to “You’re Fired!”

    Instead of dramatic confrontations, customer scoring provides a structured approach to relationship management. This system works in two crucial ways:

    Pre-Engagement Scoring

    Before working with new clients, establish clear criteria to assess whether they align with your:

    • Company culture
    • Work style
    • Service offerings
    • Budget expectations
    • Communication preferences

    This predictive tool can help you avoid problematic relationships before they begin.

    Post-Engagement Scoring

    Once relationships are established, use an ongoing scoring mechanism to track performance. Evaluate factors like:

    • Profitability
    • Client success and ROI from your services
    • Payment timeliness
    • Resource demands vs. revenue generated
    • Cultural alignment
    • Growth potential
    • Ease of working together

    Case Study: Turning Customer Attrition into Opportunity

    A global logistics client approached me with a serious problem—they were losing 35% of customers annually, significantly higher than the industry average of 20%.

    They initially believed the problem was in their customer service team. But when I examined the entire customer lifecycle, I discovered something different.

    They were primarily targeting American companies looking to expand into Europe. They had a super attractive offering and no shortage of customer willing to sign up.  However, there were too many clients leaving them after just 6 months.

    The problem was, many of the customers liked the idea of expanding into Europe but were not actually ready to do it. 

    By developing a customer scoring system that rated prospects on factors like:

    • Product fit for European markets
    • Prior third-party logistics experience
    • Language capabilities
    • Understanding of UK/EU regulations
    • Marketing plans for European customers

    …they could predict which clients would succeed and which would likely terminate services within six months.

    Rather than rejecting those low scoring clients outright, this scoring system enabled the company to develop a new service line, helping businesses prepare for successful European expansion. The result? Dramatically reduced attrition, improved customer satisfaction, and increased profitability.

    Creating Your Own Customer Scoring System

    Developing an effective scoring framework isn’t complicated, but it requires thoughtful consideration of what truly matters in your business relationships:

    1. Identify 5-8 key factors that define an ideal customer relationship
    2. Create a 1-5 scale for each factor
    3. Include criteria reflecting both sides of the relationship value exchange
    4. Score all existing clients quarterly
    5. Set threshold scores that trigger specific actions
    6. Apply the same criteria to prospective clients

    Handling Low-Scoring Customers

    When you identify customers with problematic scores, you have several options:

    Improve the relationship: Sometimes a frank conversation about expectations can transform things.

    Adjust your pricing: If a customer constantly pushes back on value, increasing prices can either lead to their departure (freeing resources for better-fit clients) or cause them to suddenly value your services more highly.

    Facilitate transition: Help them find another provider that’s a better fit while maintaining goodwill.

    Create a different service model: Develop a streamlined offering that better suits their needs while requiring fewer resources.

    The Freedom of Strategic Customer Selection

    Remember this crucial business truth: not all revenue is good revenue.

    The most successful businesses understand that customer selection is as important as customer acquisition. By implementing an objective scoring system, you transform what’s often an emotional, subjective process into a strategic one that benefits your business and team.

    After all, a customer who isn’t right for you probably isn’t getting the best service either. Sometimes, the kindest thing you can do is help them find a better match for their needs.

    Your team’s morale, your profitability, and even those customers themselves will ultimately thank you for making this difficult but necessary decision.

  • The 10 most common mistakes businesses make when communicating price increases (and how to avoid them)

    The 10 most common mistakes businesses make when communicating price increases (and how to avoid them)

    It’s no wonder that many businesses are afraid to increase their prices given that it can go wrong, damage your relationship or at worse lose you customers. . Here are some of the most common COMMUNICATION pitfalls and how to avoid them.

    What not to do:
    ❌ Surprising customers with no advance notice of price increases
    ❌ Failing to explain the reasons behind the price increase
    ❌ Using apologetic or defensive language when announcing increases
    ❌ Sending impersonal mass communications rather than tailored messages
    ❌ Not providing enough lead time before implementing new prices
    ❌ Failing to remind customers of the value they receive
    ❌ Using overly complex or technical language in price increase communications
    ❌ Not having a clear communication plan for different customer segments
    ❌ Failing to brief customer-facing staff on how to handle questions
    ❌ Not providing clear documentation of price changes

    Instead:
    ✅ Give customers at least 30 to 60 days’ notice, allowing ample time for budget adjustments
    ✅ Clearly explain price increase reasons, enhancing services, or new quality improvements
    ✅ Use confident, factual language, position increases as necessary for continued excellent service
    ✅ Personalise communications for customer segments, tailor messages to their specific needs and value
    ✅ Implement a two-stage communication process, warn first, then confirm with specific details
    ✅ Remind customers of the full value package, highlight all benefits and improvements over time
    ✅ Use clear, straightforward language, avoid jargon and clearly state the new pricing
    ✅ Create segment-specific communication plans, different approaches for premium vs standard customers
    ✅ Thoroughly brief all customer-facing staff, provide scripts and objection handling training
    ✅ Provide comprehensive documentation, create FAQs if necessary

    Remember, price increases don’t have to cost you customers. When communicated properly, they can actually strengthen your relationships by demonstrating how you are continuing to invest in your service and are a safe partner for them in the long term.

    How has your business handled price increase communications?

  • How NOT to announce a price increase to your customers

    How NOT to announce a price increase to your customers

    This was an email I received from a hosting provider.

    The tone is apologetic and they don’t make any effort to talk about the value they have delivered or will be in the coming year other than a vague reference to improving infrastructure.

    Second half of a price increase email from a web hosting provider

    I appreciate that their costs have gone up, along with everyone else’s but with a little more effort they could have taken this opportunity to communicate the wide range of products and services they offer and their planned roadmap for the year. It would even be a chance to upsell additional services.

    Suffice to say I am not with them now and I am instead paying considerably more with another provider but one who I feel is delivering more value.

    For a much better example of how to word a change, check out this one from Amazon,

    And if you haven’t put your prices up for some time, use this handy calculator to see what your price should be based on just UK average inflation.

    Price Inflation Calculator

  • How Amazon generated $2 billion of additional revenue in 1 year without raising prices

    How Amazon generated $2 billion of additional revenue in 1 year without raising prices

    There are good ways and bad ways to communicate changes to your pricing or service. This is an example of a well managed one from Amazon in January 2024 that you may well have received yourself.

    Lets break it down,

    Start of email from Amazon about change to service
    price change notice from Amazon prime

    They make it clear what the change is and why they are making it. They stress the value early on in terms of how it will enable them to continue investing in their content.

    They also play down the negative impact of this change on customers by comparing how they will have fewer ads compared to other streaming platforms.

    They also provide the upsell option where you can keep your existing service and remove the new ads by paying an additional £2.99 a month.

    Next they reinforce the value and everything that you get in the service to remind you just how good it is,

    Middle part of a price increase letter from Amazon about their Prime service which highlights the services you get bundled into the package.
    Amazon Prime service notice, highlighting the great value

    And finally they wrap it up with the following,

    Final part of an Amazon Prime service change email sent to all customers.

    They clarify that there is no action required and also give another gentle push towards their ad free additional subscription.

    They made this change in January 2024 and in that year alone they generated over $2 billion in Prime Video related revenue.

    Amazon knew that their customers (including myself) might not be happy about the ads but they also knew that customers love the convenience of next day deliveries and all the other parts of the Prime service.

    This meant that they had very little risk of losing a significant percentage of customers and any losses would easily be offset by the increased revenue.

    They also provided an upsell to at least give those customers who are really upset about the ads a way to avoid them, albeit at an additional cost.

    The reality is that Amazon were actually degrading the customer experience to develop a new revenue stream. They way they positioned it though was extremely well done and by focusing on the value they are delivering they avoided any significant customer push-back.

  • Are you driving your business whilst only looking in the rear view mirror?

    Are you driving your business whilst only looking in the rear view mirror?

    Unless you are reversing, you wouldn’t try and drive your car whilst only looking in the rear view mirror would you? SO why do so many business owners drive their businesses in this way when it comes to performance metrics (KPI’s).

    The Backwards-Looking Trap

    I recently responded to a friends post about KPIs, and it sparked a thought: why do so many small and medium-sized businesses focus exclusively on lagging indicators like revenue and margins?

    The issue with this approach is glaring—these metrics show you what’s already happened. They’re historical data points that you simply cannot change. While they’re certainly important to track, they represent only half of the performance picture.

    A Complete View Requires Two Perspectives

    To effectively steer your business, you need both lagging AND leading indicators. Think of it this way:

    Lagging indicators are your rear-view mirror—they show what’s already happened. These include:

    • Quarterly revenue figures
    • Profit margins
    • Customer retention rates
    • Cost of goods sold

    They’re excellent for confirming whether your strategies worked, but they only tell you about the past.

    Leading indicators are what you see through the windscreen—they show what’s coming next and allow you to anticipate when to change direction, accelerate, or brake. These include:

    • Website traffic trends
    • Quality of your sales pipeline
    • Customer engagement metrics
    • Pre-booked consultations and meetings
    • Proposal conversion rates

    These forward-looking metrics give you early warnings of potential problems or confidence that you’re on the right track.

    The Value of Looking Forward

    Surprisingly, most businesses fixate only on the rear-view mirror. This backward-looking approach limits your ability to make proactive decisions about pricing, cost management, and value delivery—the very levers that most significantly impact profitability.

    When you incorporate leading indicators into your business dashboard, you gain the ability to:

    1. Anticipate market shifts before they affect your bottom line
    2. Adjust pricing strategies proactively rather than reactively
    3. Identify cost-saving opportunities before they become urgent necessities
    4. Recognise shifting customer preferences while there’s still time to adapt

    Balancing Your View

    You absolutely need to know where you’ve been—historical performance provides essential context and confirms whether your strategies are working. But more importantly, you need to know if you’re heading in the right direction.

    The businesses that thrive are those that maintain this balanced perspective. They acknowledge past performance while prioritising the indicators that give them control over their future.

    Next time you’re reviewing your business metrics, ask yourself: “Am I spending as much time looking through the windscreen as I am checking the rear-view mirror?”

    You can join the discussion about this topic on LinkedIn here

  • Your Pricing Tells a Story: Is it Signaling Success or Struggle?

    Your Pricing Tells a Story: Is it Signaling Success or Struggle?

    In 2025’s challenging business landscape, your pricing strategy isn’t just about covering costs – it’s telling potential clients exactly how you value your expertise. 💡

    Rising operational costs (Wage increases, higher National Insurance contributions, increased supplier costs) are pressuring many UK service businesses with many seeing their margins shrink. Despite all of these pressures, I am often surprised by how many businesses still decide to “stay competitive” by keeping prices low, consider this:

    🚫 What Your Low Prices Actually Signal:

    – Lack of confidence in your service value

    – Struggling to retain clients

    – Competing solely on price (race to the bottom)

    ✅ What Strategic Pricing Communicates:

    – Confidence in your expertise

    – Premium service delivery

    – Strong client relationships

    The reality is that the vast majority of customers are not as price sensitive as you might believe and so businesses consistently underestimate what clients will pay for quality services. In fact, most clients use price as a proxy for quality – especially in service industries where tangible comparisons are difficult.

    What you can do about it

    – Audit your current pricing against market positioning

    – Segment your services into clear value tiers

    – Focus communications on value delivered, not cost

    – Implement changes with confidence

    – Remember: Your price is your story. Make sure it’s telling the right one.

    Contact

  • Pricing with confidence

    Pricing with confidence

    I often encounter a familiar scenario: successful small business owners, delivering excellent products and services, yet hesitating to adjust their prices despite rising costs. If this resonates with you, you’re not alone – and more importantly, your fear of increasing your prices is nearly always unfounded. A modest 10% increase in pricing can result in a 25% increase in profitability. Pricing is the most powerful lever you have in your business.

    Understanding the Fear Barrier

    The reluctance to raise prices often stems from a deep-seated fear: “If I increase my prices, I’ll lose my customers.” This concern, while natural, is typically more perception than reality. In my experience working with numerous SMEs, well-implemented price increases rarely lead to significant (if any) customer loss, particularly when handled with transparency and confidence.

    The Art of Value Communication

    The key to successful price increases lies not in the numbers themselves, but in how you communicate them. Consider this your opportunity to:

    1. Showcase Your Evolution: Highlight the improvements you’ve made to your business and how they benefit your customers
    2. Demonstrate Investment: Share how you’re reinvesting in your capabilities to serve clients better
    3. Reinforce Value: Remind customers of the specific benefits and results they receive from your service

    Most importantly, don’t forget that your customers want you to be successful too. You are solving a problem for them through the product or service you provide. They don’t want to see your service degrade or worse case for you to go out of business.

    Not increasing your prices is not helping your customers!

  • Why Sticking to Old Prices is Costing You

    Why Sticking to Old Prices is Costing You

    Inflation is a constant force in the economy, averaging around 2-3% annually for many countries, although recent years have seen spikes closer to 8-10%. For businesses, this means that the cost of rent, utilities, goods and salaries steadily rises. The impact may be imperceptible over just one year but the compound effect can have a huge impact on a businesses profitability.

    To give an example, let’s say your business has annual expenses of £100,000. With inflation averaging 3%, that means your costs increase by £3,000 in the first year and a little more every year thereafter. If your prices remain the same, you’re effectively absorbing this loss directly into your profit margins. Over five years, you’re looking at £16,000 in increased costs.

    Unfortunately for many businesses, inflation has gone up by a massive 21% over the last 3 years, with the majority of smaller businesses not passing on those increased costs to their customers and instead eroding their margins.

    Inflation is coming down to more manageable levels but there are always new challenges such as recent changes to National Insurance contributions in the UK so it’s more important that ever to get your pricing strategy right and make sure to increase your own prices on an annual basis.