Profits & Pints Recap — March 2025
- Strategic Business Coaching
- Mar 24
- 3 min read
Updated: Jul 21
Pricing & Profitability: How a 1% Shift Can Supercharge Your Bottom Line
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What We Covered
Our very first Profits & Pints brought together growth-minded business owners for drinks, strategy, and clarity around one of the most misunderstood levers in business: Pricing.
Most entrepreneurs think profitability comes from selling more. But this session reframed that thinking:
What if you could grow your profit without growing your volume?
We introduced the Power of One, a framework that shows how tiny improvements (just 1%) in areas like pricing, cost of goods, and overhead can dramatically increase profitability and cash flow. The numbers don’t lie.
7 Common Pricing Mistakes That Quietly Kill Profit
Attendees evaluated their own pricing strategies through the lens of these common traps:
Underpricing out of fear
Afraid customers will walk if you raise prices? That mindset keeps you stuck with razor-thin margins.
Overusing discounts
Discounting is often a knee-jerk reaction. It can lead to profit erosion and train customers to wait for deals.
Using cost-plus pricing without considering value
Pricing based only on cost + markup ignores market positioning and customer willingness to pay.
Forgetting psychological pricing
Techniques like anchoring, bundling, and charm pricing ($99 vs. $100) impact perception and conversion.
Not communicating price increases clearly
Most customers are fine with increases when they’re explained transparently and framed around value.
Never adjusting prices
If you haven’t raised your prices in the last 12 months, inflation has likely already eaten into your profits.
Offering just one pricing option
Give customers choices. A tiered structure (Basic, Premium, VIP) creates more conversions and more revenue.
Participants used our Pricing & Profitability Worksheet to identify their biggest pricing gaps and plan real changes.
The Discount Trap
We dove into the math, and the emotional habits, around discounting. Here’s what we discovered:
A 10% discount can require 30%–50% more sales just to break even.
And yet, many business owners use discounts as their primary growth strategy. Instead, we offered alternatives:
Bundle products/services
Offer more value instead of cutting price
Use limited-time bonuses rather than permanent markdowns
Develop a tiered pricing model to serve multiple buyer types
The Power of a 1% Price Increase
This concept blew a few minds in the room.
With one simple exercise, we proved that increasing prices just 1%, without changing anything else, could significantly increase profitability. Why?
Because in most businesses, fixed costs stay the same, so every dollar added through pricing goes straight to the bottom line.
Try it right now:
Write down your total annual revenue.
Multiply by 0.01.
That’s the added profit from a 1% price increase.
Example: $1,000,000 × 1% = $10,000 additional profit, with zero extra sales.
Live Workshop Exercise: Choose Your Pricing Experiment
We wrapped the session with an action-oriented prompt:
Identify one pricing mistake you’re currently making
Choose one change to test this month
Write down how you’ll measure success (e.g., sales conversions, feedback, retention)
💡 Examples from the room:
“I’m going to test a 3-tier package instead of one price.”
“I’ll increase prices by 5% on my top-selling item and monitor weekly sales.”
“I’m eliminating my auto-discount and replacing it with a free add-on.”
What Attendees Said
“That 1% math changed how I think about pricing forever.”– Retail Business Owner
“I’ve always defaulted to discounting. Now I’m going to restructure my packages to add value instead.”– Consultant, Eugene
Key Takeaways
✔ A 1% price increase can be more impactful than a 3% sales increase
✔ Discounting is dangerous without understanding the math behind it
✔ Most business owners are underpricing and overthinking price fears
✔ Small shifts in pricing strategy can generate real momentum for growth
What's Next
Ready to join us for the next Profits & Pints?
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These events fill fast, and we’d love to see you there, whether you're revisiting your marketing plan, dialing in your cash flow, or just want to connect with other owners over something real.
Need Help With Your Pricing?
This blog is just the beginning. If you want a second pair of eyes on your numbers or need help redesigning your pricing strategy, book a free session with Samantha at Strategic Business Coaching.
Book a Free Strategy Session
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