By TrickDigi
The most terrifying moment in my business life wasn’t starting the company. It was the day I decided to change a number on my website.
For two years, I had been selling my flagship product for $42.00.
I chose that price because I was scared. I looked at my competitors (who were selling for $50 or $60) and thought, “I need to be the cheaper option. That is my competitive advantage.”
It worked, sort of. I was getting orders, but I was drowning. After paying for shipping, packaging, and the cost of goods, my margin was razor-thin. I was working 60 hours a week to make minimum wage.
I knew I had to raise prices to survive, but I was paralyzed by fear. I thought, “If I raise the price, my customers will leave. I will go to zero.”
Last month, out of desperation, I ran an experiment. I raised the price from $42.00 to $49.50.
I expected a revolt. I expected silence.
Instead, something bizarre happened. Sales actually went up.
Here is the breakdown of the “Price Trap” I was stuck in, and why charging more actually attracted better customers.
The “Cheap” Brand Trap
When you compete on price, you attract a specific type of customer: The Bargain Hunter.
Bargain Hunters are difficult.
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They send the most customer support emails.
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They complain about shipping times.
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They are the most likely to return the product.
By pricing myself at the bottom of the market, I wasn’t just lowering my profit; I was signaling to the world that my product was “cheap.” I was accidentally telling people, “This isn’t as good as the $60 version.”
The Experiment: $42 vs. $49.50
I decided to test the new price for 30 days. I didn’t announce it. I just changed the tag.
Here is the data from the month before the change vs. the month after.
| Metric | Month A (Price: $42) | Month B (Price: $49.50) | The Shift |
| Total Units Sold | 100 | 94 | -6% (Volume Drop) |
| Revenue | $4,200 | $4,653 | +$453 |
| Profit Per Unit | $10.00 | $17.50 | +75% |
| Total Profit | $1,000 | $1,645 | +64.5% |
Look at the “Total Profit” row.
I sold 6 fewer units. But because my profit margin per unit jumped so drastically, my take-home pay increased by 64%.
I made significantly more money for doing less work (packing fewer boxes).
Why It Worked: Value Perception
Why didn’t sales crash? Because of Perceived Value.
When a customer sees a product for $49.50, they assume it is higher quality than the one for $42.00.
In the retail world, price is a marketing signal.
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Low Price: “This is a budget option. It might break.”
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Higher Price: “This is a premium option. It will last.”
By raising my price, I moved my brand out of the “Budget Bin” and into the “Premium Tier” without changing the product at all.
The Hidden Benefit: Better Customers
The most surprising result wasn’t the money. It was the silence.
My support inbox got quieter. The customers who bought at the higher price point were more serious. They read the description. They knew what they wanted. They were happier.
I realized that by being the “cheap option,” I was attracting customers who didn’t value the product. By charging a fair price, I attracted customers who respected it.
Conclusion: Don’t Be Scared of Your Worth
If you are a retail business owner running on thin margins because you are afraid to scare away customers, stop.
You are not Walmart. You cannot win the “Low Price” game. There will always be someone willing to go out of business faster than you.
Raise your prices. You might lose a few bargain hunters, but you will gain the one thing that actually keeps a business alive: Profit.