Every year, I sit down with business owners before the season, and one topic consistently makes people break a sweat: raising prices.
I get it. The fear of losing customers is real. But if you want your business to thrive, not just survive, incremental price increases aren't just a choice; they’re a necessity. Here is why you shouldn't leave money on the table this year.
The Reality of Rising Costs
Your margins are under constant attack. From the fluctuating costs of ingredients to the steady climb of overhead like rent, insurance, and utilities, your "fixed" costs aren’t actually fixed.
Then there’s labor. Whether you’re navigating New Jersey’s $16 minimum wage or Delaware’s $15, labor costs trend upward every year. If your prices stay stagnant while your expenses rise, your profit evaporates.
The Psychology of Quality
Here is a secret many owners forget: Customers associate higher prices with better quality. While there is a ceiling to what people will pay, a small increase—think 25 to 50 cents—often goes unnoticed by the average consumer. However, that "quarter" adds up to thousands of dollars in profit for you by year-end. If you provide a premium experience, your customers expect to pay a premium price. If you lose a customer over a dime, the price likely wasn't the issue—the experience was.
Combatting Inflation
With U.S. inflation averaging between 3% and 8% recently, failing to adjust your pricing means you are effectively taking a pay cut. If your competitors are adjusting for the market and you aren't, you’re simply leaving money on the table.
Flexibility for Growth
Raising your base prices on core items (like standard cones or sundaes) creates a "margin cushion." This gives you the flexibility to get creative with upsells, premium bundles, and specialty toppings without hurting your bottom line.
The Bottom Line: Don’t wait until you’re in the red to make a change. Talk to your suppliers, understand your upcoming costs, and plan your increases accordingly.
