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6d • General discussion
The Untold Rule of Business Growth: Price Increases Are Non-Negotiable
A long-time client once came to renegotiate a multi-year contract for 50 part numbers. The truth is that I was exhausted with those products. Margins were thin and they required too much care to produce.
So I applied what I learned from Alex Hormozi’s 100M Offers. I raised prices. Not by 20 percent. I went three to five times higher. I knew I might lose sales and I was okay with that.
The buyer was not happy. Out of 50 part numbers I lost 40. But here is the key: my profits increased by more than 200 percent. I only had to produce 10 part numbers instead of 50, and I manufactured the entire yearly order in just two weeks. I then delivered it gradually throughout the year.
One year later the same client returned and added 10 more part numbers, accepting another price increase.
Here is why this matters beyond my story:
Inflation eats margins silently. In Mexico, inflation has averaged 4 to 5 percent annually in recent years. If you do not raise prices, you are effectively giving clients a discount every year.
Costs never stop rising. From raw materials to energy and labor, manufacturers know production inputs climb 5 to 10 percent every year.
Your time has value. By cutting product volume but tripling prices, I freed up hours to focus on more profitable projects.
The lesson for every business owner: Raising prices is not optional. It is mandatory. Do not wait until the end of the year. It is harder to push one big increase than to adjust gradually every month or every six months.
Yes, you may lose some sales. But you will gain higher profits, more free time, and stronger control over your operation. That is the real win-win.
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The Untold Rule of Business Growth: Price Increases Are Non-Negotiable
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