It’s a question many business owners are quietly asking themselves right now.
The outlook for 2026 looks uncertain. Businesses are managing rising costs. Households are watching their spending. And naturally, that makes many owners hesitate when it comes to pricing.
But the conversation around pricing is rarely simple.
Recently this topic came up in the Orbit Business Community, and it sparked some thoughtful discussion. The consensus wasn’t necessarily “everyone should increase their prices tomorrow”, but there were some interesting perspectives worth sharing.
Firstly, pricing is part of running a healthy business.
At the end of the day, businesses exist to make a profit. That isn’t greed — it’s sustainability. If costs increase but prices don’t move, the pressure lands squarely on the business owner.
Absorbing rising costs might feel like the “right” thing to do in the short term, but over time it can quietly erode margins and create long-term problems.
It is a fact of business – as a business owner we primarily are here to make a profit – we should be managing our profit margin and not absorbing additional costs to ourselves.
Secondly, price changes don’t always have the impact we fear.
One Orbit member made a simple but powerful point:
“If you increase prices and lose a couple of customers, then worst case you retain your turnover with less work to do.”
Of course, this depends on your market and how sensitive it is to price. Economists would call this the elasticity of demand as highlighted by one of the members. Some industries are extremely price sensitive, while others are driven far more by quality, expertise or trust.
The example shared was the rising prices of fuel – they can raise the prices as people need it!
Understanding where your business sits in that spectrum is key.
Thirdly, smaller regular increases are usually easier than big jumps.
Another point raised was that year-on-year price adjustments are often healthier than holding prices static and then making a big increase every few years.
Gradual changes feel more natural for customers and are easier for businesses to manage.
Communication matters just as much as the price itself.
If prices do change, transparency is important. Customers generally respond better when businesses explain the why – the basis of the increase.
That might mean highlighting rising costs, but it’s also an opportunity to remind clients of the value you deliver such as the expertise, reliability, service quality, and outcomes they receive.
Sometimes it isn’t a price increase but it’s a Price Correction.
A member highlighted that it is often a positioning piece for ourselves as much as our customers.
If a business is underpriced compared to the value it delivers, raising prices isn’t necessarily an increase but it’s a price correction that better reflects the service being provided. For the business owner, it is also an opportunity to reset the relationship that may have been impacted by service creep.
And interestingly, price increases can sometimes improve your customer base.
When prices rise, you may lose a few customers. But often the ones who leave are those who were focused purely on price.
The customers who stay tend to value the relationship, the service and the results which can lead to better long-term working relationships.
Finally, pricing should always have a clear basis.
Whether it’s built on timesheets, scope of work, value delivered, or simply the realities of running a business, pricing should never be guesswork.
Having a clear structure also helps address things like scope creep, the required changes in service… and the occasional “pain in the a**e factor” that every business owner recognises.
Thank you to the following for this contributions: Jane Abbott Adrian Allen Sarah Argent-Hunt Josh Cox Rachel Cox Nick Jones Gary Hamilton Claire Rowland Shelley Linney Amanda Gowing
