Let’s address the elephant in the room, who is wearing a tiny tariff-shaped hat: your costs went up, and you probably haven’t raised your prices enough to cover it.

You are in excellent company. In a recent QuickBooks survey, 38% of small businesses have already raised prices or plan to this holiday season, and another 43% are considering it but still hesitant. Only 7% say costs haven’t risen enough to justify it. NFIB’s latest survey found that 31% of owners have raised their average selling prices, and about as many plan to in the coming months.

Translation: if you’re sitting there wringing your hands over a 50-cent increase, a whole lot of your neighbors are doing the same thing. Let’s get you through it.

Why you’re hesitating (and why it’s costing you)
Your costs are not imaginary. Gas prices are up more than 30% since the Iran war began, and new retaliatory tariffs from Canada took effect last week. Meanwhile, 48% of small businesses bought extra inventory before tariffs hit, and 36% of those are already restocking at noticeably higher prices. That cheap stockpile is running out.

Here’s the uncomfortable math: eating your costs isn’t generosity, it’s a slow-motion going-out-of-business sale with no signage.

The playbook
1. Raise prices on purpose, not by panic
Don’t nudge one item every time an invoice makes you flinch. Pull your top 10 sellers, figure out your real margin on each (include shipping, card fees, and your own time, yes, your time), and set new prices in one deliberate pass. Fewer, planned changes feel more professional than a drip of “wait, did that cost less last week?”

2. Raise the prices on the right things
Not everything is equally price-sensitive. Customers notice the price of the thing they buy every week (your latte, your basic haircut). They notice much less on specialty, custom, or gift items. Raise more where people aren’t comparison shopping, and go gentler on your everyday staples.

3. Tell people before they find out
Surprise is what makes customers mad, not the number. A short, human heads-up works wonders: “Hey, regulars. Our supplier costs have climbed, and we’ve been absorbing it as long as we can. Starting November 1, a few of our prices are going up. We’re still using the same ingredients and the same people, and we’re still thrilled you’re here.”
No groveling. No 700-word apology. You are not sorry for running a business.

4. Give people a reason to feel good about it
• Local Loyalty first: Give your regulars a heads-up (and maybe a one-time grace period) before the public sees new prices.
• Bundle, don’t just bump: A “holiday bundle” lets you raise your average sale while the customer feels like they scored a deal.
• Add value, not just cost: Free gift wrap, a handwritten note, a small sample. These cost you pennies and change how the new price lands.

5. Offer a good-better-best ladder
When every price goes up, give people options. A budget-friendly entry point keeps cost-conscious customers in the door, and a premium option lets your happy-to-splurge folks self-select. You’re not losing the customer, you’re letting them choose their own adventure.

6. Consider shrinking the thing, not raising the price
Smaller portion, trimmed menu, fewer SKUs. It works, but it’s the riskiest option if customers feel tricked. If you go this route, be honest about it. Nothing says “I don’t respect you” like a mysteriously shrinking sandwich.

7. Talk up what makes you different
Big-box stores win on price, so don’t play their game. Win on what they can’t do: knowing your customer’s name, remembering their order, showing up at the school fundraiser. When your price rises, your story is what holds it up. The one-sentence answer, in case someone asks, “Our costs went up, and this keeps us here and doing what you like about us.”
Say it kindly. Say it once. Move on with your day.

Reality check
Some customers will grumble. A few might leave. That’s okay. The customers who stay at a fair price are almost always better for your business than the ones who only came for the cheapest option. And a business that can’t cover its costs can’t serve anybody for long.

You deserve to get paid. Go forth and adjust that price tag.