What Actually Happens When You Raise Prices

Most AV companies are cautious about raising prices. So they don't. And they stay exactly where they are.

I think that's the real problem.

Because in my opinion, raising prices isn't actually that risky. What is risky is raising prices… and then doing nothing with the extra money. That's where I think most companies miss the point.

I think people massively overestimate how sensitive clients are to small increases. Take a simple example:

A €2,000 job becomes €2,100. That's €100. In most cases, nobody notices. And even if they do, it's not enough to change the decision.

They're not choosing you over €100. They're choosing you because they trust you to deliver the event properly. So from my point of view, a 5% increase is usually very low risk.

How I Would Approach It

I wouldn't make a big announcement. I wouldn't reposition the brand. I'd just start increasing prices quietly.

Keep going until you feel resistance. That's where the market starts pushing back. That's where your ceiling is.

If one client pushes back, I wouldn't panic. I'd probably drop back slightly — maybe 2.5% — and hold there. Now you're not guessing anymore. You actually know where your pricing sits.

But This Is Where Most People Get It Wrong

I think raising prices on its own is only half the job. If you raise prices and just let that extra money sit in the business, you're missing the bigger opportunity.

That extra revenue should be treated as fuel. Fuel to grow. Fuel to test. Fuel to push the business forward. Because otherwise, all you've done is make a bit more margin — but you haven't actually changed the trajectory of the business.

How I'd Actually Use EventQuoter Here

If I was doing this properly, I wouldn't guess. I'd use the data. I'd look at:

Then I'd run simple scenarios:

Now you're not just "trying something". You're making a controlled decision based on actual data. And once you implement it, you can track it. That turns pricing into something you can actually manage, not just feel your way through.

What I Would Do With the Extra Money

Personally, I'd ring-fence it. Track it separately. Treat it like a growth fund. And I'd put it straight back into something measurable — most likely advertising.

You're not risking your core business. You're using incremental revenue to try and generate more demand.

A Simple Way to Think About It

Let's say you do 50 jobs a year, average job value €2,000. That's €100,000 revenue.

Now increase prices by 10% over time:

That's €10,000 extra per year. In my opinion, that €10,000 shouldn't just sit there. Put it into ads. Generate more leads. Win more total jobs, even at a slightly lower win rate. Then you've got a compounding loop.

Where I Think the Real Responsibility Is

I don't think this is just about making more money. I think there's a responsibility here.

You've got a team relying on the business. If you stay comfortable and keep prices low, that might feel safe in the short term. But in two years' time, if margins haven't improved, salaries don't move, and people start looking elsewhere — that becomes a much bigger problem.

There's also an opportunity cost. If you're taking on jobs with very little profit, you're making yourself unavailable for better clients. Those higher-value jobs go somewhere else.

Personally, I'm fine letting another AV company take on underpriced work. It usually doesn't last long anyway.

One Simple Action

Do This Now

Increase your next 5 quotes by 5%. Don't announce it. Just do it. Then track the difference. And if that extra money comes in, ring-fence it. Put it to work.

Is that a smart way to approach it, or am I missing something?