How to Raise Prices 15-20% Without Losing Customers

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Most founders are scared to raise prices. 

They worry customers will leave, and assume conversion rates will tank... 

Meanwhile, their margins stay thin and profitability never quite materializes. 

After working with several brands through price increases, the ones that execute well don't see conversion drops. 

They see margin expansion because they time it correctly and communicate value properly. 

In this email, we're breaking down: 

• The strategic timing and messaging that allows brands to raise prices 15-20% 

• How to use positioning changes and bundle restructuring to justify increases 

• The Price Increase Playbook that protects conversion while expanding margins 

Let's dive in:

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When to Raise Prices 

Timing matters more than most founders realize. 

Raising prices when momentum is strong or you've just improved the product feels natural. 

Raising prices during a slow period creates resistance. 

The Best Times:

• After a product upgrade or improvement 

• When demand exceeds supply 

• During a rebrand or repositioning 

• After building strong reviews and social proof 

The Worst Times: 

• Right after a quality issue 

• During slow sales periods 

• When you haven't communicated value clearly

How to Make Price Increases Feel Justified 

The resistance to price increases isn't about the dollar amount, it's about perceived value. 

• Positioning Changes Reframe 

How your product is positioned before raising prices. 

If you've been competing on affordability, shift to quality or results. 

This gives customers a reason to mentally justify the higher price. 

• Bundle Restructuring 

Instead of raising the price on individual products, restructure your offers. 

Remove standalone low-priced options and introduce bundles at higher price points. 

A $40 product becomes a $120 three-pack, raising your AOV without feeling like a straight price hike. 

• Value Communication 

Most brands under-communicate the value they deliver. 

Before raising prices, audit your messaging. 

Highlight ingredients, sourcing, manufacturing process, or customer results. 

The more value you communicate, the less price-sensitive customers become.

The Price Increase Playbook 

Step 1: Segment Your Customer Base 

High-LTV repeat customers already love your product. 

A 15-20% increase won't make them leave if you communicate it well. 

Recent first-time buyers are still evaluating, so raising prices immediately can hurt retention. 

Price-sensitive bargain hunters will leave. 

That's okay. 

Step 2: Implement Grandfather Clauses 

Reward loyalty by grandfathering in existing customers at current prices for a set period. 

Example: "Current subscribers keep their pricing through the end of the year. New subscribers pay the updated rate." 

Step 3: Announce with Clear Reasoning 

Never raise prices silently. 

Explain rising costs, product improvements, or shifts in positioning. 

Use email to notify existing customers before the increase takes effect. 

Give them time to stock up at current prices if they want. 

Step 4: Monitor Conversion and Adjust 

Track conversion rates daily for two weeks after the increase. 

If conversion drops more than 10-15%, you may have raised too much. 

Most brands find that well-executed price increases result in only 5-10% conversion drops, which are offset by the margin expansion.

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Final Thoughts

Raising prices doesn't kill conversions when you time it correctly and communicate value clearly. 

The brands that stay stuck at low margins are the ones too scared to test pricing power. 

The ones that expand profitably raise prices regularly and protect their best customers with grandfather clauses. 

If your margins are thin and you're scared to raise prices, audit your value communication first. 

Then test a 10-15% increase in new customers while grandfathering in existing ones. 

You'll likely find that customers care less about price than you think when the value is clear.

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No long-term commitment and we’ll support with Media buying (Meta, Google) and creative strategies to ensure you can achieve the goals and growth you need for Q4.

Our rates start at $3500 / month - if you’re wanting to chat and see if we can work together let’s chat.

Book a call and see if we’re a good fit.

No long-term commitments, we earn our place in your budget every month.

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Disclaimer: Special thanks to Juo & Triple Whale for sponsoring today’s newsletter.