How do I know if it's time to raise my prices?

Small business owner Q&A.

Dec 17, 2025

Last week, we dove into How to grow your business without burning out.

Now we’re onto pricing. This is a sensitive subject for pretty much every female business owner I know. My guess is you’re one of them.

So let’s dig in.

How do I know if it’s time to raise my prices and by how much?

When I saw this question in my inbox, I knew it was one I needed to answer before the year was out.

It can be sneaky, and it often sounds like:

I’m busy, but the money doesn’t feel great.
I’m doing better work than ever, but my bank account doesn’t seem to reflect that.
I know I probably should raise my prices… I just don’t know how to go about doing it.

This is a clarity problem. And it’s a confidence problem.

Let’s get you some of both.

Know that price increases are not arbitrary

Most founders I know and work with are not charging enough for the work they do. Raising your prices is not about “charging your worth” (a phrase I would happily retire).

It’s about whether your current pricing supports:

the business you’re running now
the quality of work you’re delivering
and the life you’re trying to have

If the answer to any of these points is “no,” it’s time to look closely at what you’re charging.

You should be charging for the value and outcomes you deliver.

Here are the clearest signs it’s time to raise your prices.

1. You’re fully booked or close to it

If demand is steady, you haven’t received any pushback on your pricing from potential clients, and you’re saying no due to capacity issues (or squeezing people in), the market is giving you feedback.

It’s not “work harder.” It’s “adjust your pricing.”

2. Your skills, judgment, and scope have grown, but your pricing hasn’t

Many founders get stuck with pricing based on who they used to be.

If you’re currently:

faster
more strategic
better at problem-solving
able to anticipate issues before they arise
delivering revenue-driving (or otherwise measurable) results for your clients

… your pricing should reflect that evolution.

Experience has value. Quite a lot of it.

3. You’re doing work that feels heavier than it should

If projects feel draining not because they’re hard, but because they’re underpriced, that’s a signal.

Resentment is usually a pricing issue in disguise. As I said above, this question of pricing can be sneaky.

4. You can’t invest in support, systems, or yourself

If your pricing only works when you personally do everything — delivery, admin, thinking, selling — then your business is not sustainable.

Sustainable businesses have margin. Margin to pay yourself and invest in growth. And margin comes from your pricing.

Okay, but by how much?

This is where I see people get stuck. So let’s make it practical.

Here are a few grounded approaches for you to consider:

1. The next-client approach.

You can choose to raise your prices for new clients only. This gives you real-world data without blowing up your existing book of business.

How to determine what your fees should be? I wrote about this in post from last year. I consider this evergreen content:

Don't undervalue your services or products

Katherine Danesi

October 2, 2024

Read full story

My only update for the end of 2025 would be to engage in a conversation with ChatGPT/Claude/Gemini and have it challenge your new pricing based on your target market and what you’re delivering for them.

If you feel a little nervous but not totally nauseous, you’re probably in the right range.

2: The 10–20% rule for current clients.

If you have retainer clients, or clients that come back to you for occasional project work, there will come a time when you need to raise your rates for those folks. A 10–20% increase is meaningful without being destabilizing.

Anything smaller likely doesn’t move the needle in your business. If you choose to go with a larger increase, it should come with clearer positioning or scope changes.

3. Price to the business you want, not the one you have.

This ties back to the article I shared above.

Ask yourself:

How many clients do I actually want to work with at one time?
How many hours do I want to work per week?
What support do I want to pay for?
What do I want to take home?

The idea is to back into pricing from there.

This is how you move from what feels reasonable (cue finger in the air) to what actually works in your business.

A quick reality check.

Raising your prices will not magically fix a broken offer, unclear scope or work, or less-than-desirable delivery process.

Solid pricing works best when it’s paired with:

clear boundaries
defined deliverables
strong positioning
and a business model that makes sense

This is why price conversations are rarely just about price.

Confidence is part of your pricing strategy.

Confidence throughout the business development process, confidence in your pricing, and confidence in your interactions with clients.

Because you’re not just setting a price, you’re setting expectations. And when you present your structure clearly, directly, and without apology, clients will mirror that energy. It builds trust. And it reinforces the desired nature of the business relationship.

Your business is about delivering results. And doing so, means running a smooth, thoughtful, sustainable operation. Pricing and your fee structure are both part of that.