Stop attracting cheap clients: Why raising your prices is a business upgrade

There is one brutal rule in business that most owners learn the hard way:

The cheaper you go, the more broke customers you attract.And broke customers call nonstop, want discounts, and leave bad reviews.

If you are a hotel owner, consultant, agency, or service-based business, you know exactly what this looks like:

• Endless negotiations over already low prices

• Late-night messages for “just one more small change”

• Clients who treat you like a cost to squeeze, not a partner to trust

You think you have a sales problem.

In reality, you probably have a pricing and client-quality problem.

In this article, I’ll walk you through why cheap clients are costing you more than you think, and why raising your prices—yes, even if you’re scared—is often the most responsible decision you can make.

As CEO of Melior Tempus, I see this pattern every week across hospitality, consulting, and SMEs in Greece and abroad. Let’s break it down clearly.

1. Cheap pricing is not a strategy – It’s a symptom.

Most owners have the same internal narrative when they set low prices:

• “The market is competitive.”

• “I’ll start low and increase later.”

• “If I’m cheaper, I’ll get more volume and grow faster.”

  
  

On paper, this sounds logical.In practice, here’s what cheap pricing often really means:

• You don’t fully trust your own value yet

• You’re afraid of losing potential clients

• You’re trying to be “for everyone”

• You’re using low price to avoid having to say no

  
  

Cheap pricing doesn’t just attract people with limited budgets.It attracts cheap behaviour:

• Constant bargaining

• Lack of respect for boundaries

• Low loyalty—these clients leave as soon as someone else is cheaper

  
  

That is not how you build a strong brand or a sustainable business model.

If your entire positioning is “we’re cheaper”, you’ve built a trap for yourself.

Because someone will always be willing to be even cheaper.

2. The hidden cost of cheap clients (that your P&L doesn’t show)

On your income statement, a cheap client is still “revenue”.But in real life, they often cost you three critical resources:

2.1 Time

Cheap clients tend to generate:

• More emails

• More calls

• More changes

• More “urgent” requests

Almost none of this is billed.

All of it consumes hours that could be used on better clients, strategy, or even rest.

2.2 Energy

You know the feeling:

• Your phone rings and you already feel tension

• You spend mental energy defending your value

• You end your day drained by micro-conflicts and explanations

This energy leak is not visible on a spreadsheet, but it directly impacts your quality of work and ability to think clearly.

2.3 Focus

While you manage demanding, low-margin clients, you simply don’t have capacity for:

• Higher-quality projects

• Strategic partners

• Larger, more profitable deals

Your attention is blocked by the wrong people.

Your calendar, too.

Cheap clients keep your schedule “full”, but they keep your business weak.

3. Your price is a filter – use it intentionally

Your price is more than a number on a proposal or booking page.

Your price is a positioning signal.

It quietly tells the market:

• Who you are built for

• How serious you are about quality

• What type of relationship you inviting?

When your prices are too low for the real value you deliver, you create a mismatch:

• You behave like a high-level partner

• The client treats you like a low-cost vendor

They expect premium dedication at entry-level prices.You over-deliver to justify a fee that was too low from the beginning.

Raising your prices changes the dynamic.

You stop saying:

“Please choose me, I’m affordable.”

And you start saying:

“This is the level we operate at. If it fits you, we can do great work together.”

That’s when this becomes true in practice:

You raise your prices, you lose a few clients,and you gain a bunch of good ones.They pay full price—and they tell all their rich friends.

Because clients who are willing to invest at a higher level:

• Are more committed

• Are more respectful of your time

• Take your advice seriously

• Recommend you to people at their level

These are the clients that build your reputation and your referral network.

4. “My market is too price-sensitive” – Is it really?

One of the most common sentences I hear from business owners is:

“In my market, people only care about price.”

In some segments, that’s partially true—especially at the very low end of the market. But there are usually three layers:

1. Price-only segment : People who will always chase the cheapest option. They switch providers for a small discount. They are not loyal.

2. Value-conscious segment: People who care about price but also care about reliability, expertise, comfort, and outcomes. They are willing to pay more if it clearly makes their life easier or better.

3. Premium segment: People who prioritise trust, experience, risk reduction, and status. They want fewer problems, not the lowest fee.

The question is not:

“Is my market price-sensitive?”

The question is:

“In which segment am I choosing to live and die as a business?”

If you always compete in the first category, you will constantly:

• Fight on price

• Work harder for less

• Attract the most stressful clients

You don’t need everybody.

You need the right segment that can appreciate and afford the way you work.

5. How to raise your prices without breaking trust

If you’re reading this and thinking, “Yes, I’m underpriced—but I’m afraid to raise my fees,” here is a practical, step-by-step approach.

Step 1: Audit your current situation

Ask yourself honestly:

• Am I overbooked?

• Am I constantly over-delivering?

• Do I feel tired and underpaid?

• Are my best clients subsidising my worst ones?

If yes, your price is not just a number issue. It’s a strategy issue.

Step 2: Define your ideal client clearly

Think beyond “anyone who pays”.

Define:

• Sector (e.g., independent hotels, B2B services, SMEs)

• Size and maturity

• Mindset (short-term / long-term, cheap / value-oriented)

• Culture (respectful, collaborative, driven)

Your pricing strategy should be designed for this ideal profile, not for the lowest common denominator.

Step 3: Redesign your core offer

Create one flagship offer that reflects how you actually want to work:

• Clear scope

• Clear process

• Clear outcomes

For example, instead of “we can do everything”, move to:

• “We specialise in X and Y”

• “We solve this problem in this way”

• “Here’s what you get and what we expect from you”

Specialisation supports higher pricing and attracts more serious clients.

Step 4: Set a price that supports excellence, not survival

Your new price should allow you to:

• Deliver your best work

• Operate without constant stress

• Invest in your brand, tools, and people

• Say “no” to the wrong clients without panic

If your model only works when you are exhausted, your price is wrong.

Step 5: Communicate the change with clarity and respect

You don’t need a dramatic announcement. You need a clear one.

For example:

“From [date], we are updating our pricing and structure so we can maintain the level of quality and attention our clients expect.Here is how our new service works, and who it is designed for.”

Some clients will say no. That’s normal.

But those who say yes are already more aligned with your value.

6. What happens after you raise your prices

When our clients commit to a healthier pricing strategy, we usually see the same pattern:

• The number of clients sometimes decreases

• Revenue per client increases

• Stress per client drops

• The quality of collaboration improves

Their teams stop living in constant urgency.

They shift from surviving to designing their business.

Suddenly, there is:

• Time to improve processes

• Space to think about positioning

• Energy to serve the right clients better

And their brand stops feeling “cheap and available” and starts feeling solid, selective, and dependable.

7. Final question: Who is really shaping your future?

Take a look at your current list of clients or guests.

Ask yourself:

• Who are the most stressful 20%?

• Who constantly negotiates price, questions your value, or ignores boundaries?

• If you removed them tomorrow, would your business truly collapse…or would it finally have room for something better?

Because this is the real issue behind pricing:

It’s not just about money.

It’s about who you allow to shape your days, your energy, and your reputation.

At Melior Tempus, our philosophy is simple:

Better clients are a growth strategy.Not more clients — better clients.Less volume, more value.Less chasing, more choosing.

So yes:

• You raise your prices.

• You lose a few clients.

• You gain a bunch of good ones.

They pay full price.

They respect your time.And they tell all their rich friends.

If you’re a hotel owner, CEO, or consultant who feels trapped in low prices and high stress, this is exactly the kind of knot we help untie: pricing, positioning, and the courage to choose your clients—not just accept them.

Because the moment you stop being “cheap”, you finally have the space to build something strong.

If you want to explore how to reposition your brand, refine your offers, and design a pricing strategy that supports strength instead of chaos, that’s what we do every day at Melior Tempus.