PriceShift
See exactly how raising your prices impacts revenue — and how many customers you can afford to lose.
Your Numbers
The Insight
If you raise your price from $100 to $120, you can lose up to 16.7% of your customers (8 out of 50) and still make the same revenue. Everyone who stays is pure upside.
Revenue by Customer Loss
Scenario Breakdown
| Customer Loss | Customers Left | New Revenue | vs. Current | Verdict |
|---|---|---|---|---|
| 0%(0 lost) | 50 | $6,000 | +$1,000(+20.0%) | ✓ Ahead |
| 5%(3 lost) | 47 | $5,640 | +$640(+12.8%) | ✓ Ahead |
| 10%(5 lost) | 45 | $5,400 | +$400(+8.0%) | ✓ Ahead |
| 15%(8 lost) | 42 | $5,040 | +$40(+0.8%) | ✓ Ahead |
| 20%(10 lost) | 40 | $4,800 | $-200(-4.0%) | ✗ Behind |
| 25%(13 lost) | 37 | $4,440 | $-560(-11.2%) | ✗ Behind |
| 30%(15 lost) | 35 | $4,200 | $-800(-16.0%) | ✗ Behind |
| 40%(20 lost) | 30 | $3,600 | $-1,400(-28.0%) | ✗ Behind |
| 50%(25 lost) | 25 | $3,000 | $-2,000(-40.0%) | ✗ Behind |
Tips for Raising Prices
Give advance notice
30-60 days is standard. It shows respect and gives clients time to budget.
Anchor to value, not cost
Frame the increase around the value you deliver, not your expenses.
Raise for new clients first
Test the market with new customers before adjusting existing ones.
Make it annual
A small annual increase (3-5%) is easier than a big jump every few years.
Frequently Asked Questions
How does the breakeven calculation work?
We calculate the maximum percentage of customers you can lose after a price increase and still earn the same total revenue. Formula: Breakeven Loss % = 1 − (Old Price ÷ New Price) × 100. For example, a 20% price increase means you can lose up to 16.7% of customers and break even.
Should I really raise my prices?
If you haven't raised prices in over a year, you're likely undercharging. Inflation alone erodes your real earnings by 3-5% per year. Most businesses report losing far fewer customers than expected after a price increase — typically under 5%.
What percentage increase is reasonable?
5-10% annually is considered reasonable for most industries. Larger increases (15-25%) are appropriate if you've been underpriced or have significantly improved your offering. The breakeven calculator above helps you see the math clearly.