This episode tackles one of the biggest challenges small businesses face — pricing. Only 46% of small firms made a profit in 2023, while more than a third operated at a loss. Many business owners, especially those running micro businesses, worry deeply about their revenue. A listener asks how to raise prices without losing customers, a struggle most entrepreneurs can relate to. I explain that pricing isn’t just about numbers — it’s about the value you create, the transformation you deliver, and how you position your business. In this episode, I share simple, practical steps to help business owners build confidence, grow sustainably, and start fixing the pricing problem.

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A series of statistics reveal the fragile state of small businesses in 2023 and 2024, showing that only 46% reported profits while 41% saw their revenues decline. This episode explores the tough reality faced by micro businesses, with 44% naming revenue as their biggest concern. These numbers set the stage for a powerful discussion on pricing — sparked by a listener’s question about finding the balance between raising prices and keeping customers. Host Ralph Estep Jr., drawing from over 30 years of experience, explains that pricing isn’t just about numbers; it’s about how customers perceive value and how businesses stay financially healthy. Through real stories and practical wisdom, Ralph reveals how poor pricing decisions can harm a business and challenges listeners to rethink their approach.

Takeaways:

• In 2023, only 46% of small businesses with employees reported profitability, indicating a significant challenge for entrepreneurs.
• A staggering 41% of small businesses experienced revenue declines in 2024, with just 38% noting revenue gains, highlighting market difficulties.
• Micro businesses, defined as those with one to four employees, are particularly stressed, with 44% citing revenue concerns as a major issue.
• Pricing is not merely an arithmetic exercise; rather, it embodies a complex balance between perceived value and market dynamics.
• Many small business owners fear that raising prices will result in customer loss, yet it is often necessary to ensure sustainability.
• Developing a sound pricing strategy is crucial for small business success, as underpricing can lead to burnout and financial instability.

Links referenced in this episode:

• gritandgrowthbusiness.com/action
• gritandgrowthbusiness.com/coaching
• gritandgrowthbusiness.com/live

To access the action sheet for today's episode click here http://gritandgrowthbusiness.com/action

Tired of feeling stuck in your business? Discover my 12-week coaching program built for small business owners just like you: www.gritandgrowthbusiness.com/coaching

Buy Ralph's Book - Mastering Your Finances!

Buy Ralph's Book - Gospel of Entrepreneurship: Following Jesus in Your Business Journey

Buy Ralph's Book - How to Become a Financially Confident Christian