You want to increase your prices and the question you have in your mind is "How is it going to impact my customers? Are they going to stick around or are they going to leave?" Of course, it depends on many things right? How sensitive are they to the price? Do they really value highly your services or products? What are your competitors doing? Can they buy exactly the same thing somewhere else? And how easy it is for them to switch to another supplier?

So these are all questions that answering them may help you having an indication as to what will happen. But of course, we don't know exactly. No one knows exactly how it will pan out.

What I think it can help in this situation is to have an estimate and calculate how the profitability of the company will go with these changes. Because you know that the price increases-you've decided to increase your prices so revenue will go up, but the sales will go down, so the quantity you sell will decrease. You don't know how much. Also, you know that some of your cost may decrease depending on your products or services.

You can have an estimate. For example, you can say, "Okay, what happens to my profit if I lose five percent of my customers?" Or, "What happens if I lose ten percent of my customers?" Have different scenarios panned out on an Excel spreadsheet. Have the help from your team or from your accountant to calculate that.

Once you see that on paper, then you can make a decision. For example, if you see that the profit doesn't decrease or increases then you may be happy to increase your prices straight away. But if your profitability decreases than you may want to take different actions.

You can, for example, decide to apply the new price only onto the new customers but not the old customers, and wait until the new customer base grows and then apply it across everybody. Or maybe you want to wait. Perhaps there's a product that you are developing or a service that is highly profitable and you can work on growing that so that your profitability increases and then you can change the price and increase the price there.

There's a thousand different things you can do but if you have the numbers there based on different scenarios how is it going to change your company's profitability then it may allow you to make better decisions and have more ideas on what actions can you take to change that outcome.

I hope this is helpful. Thank you.