Sep '25 • Value Letters 📩
Do This To 3X Your Profits Quickly [Spoiler: It's Simple]
A few weeks back, I had a client who was stuck at $2,000–$3,000/month in revenue… but here’s the shocking part:
👉 his actual profit was only $300–$500/month.
Why?
Because he had hired 8–9 employees/service providers just to keep his business afloat. They were underpaid, underperforming, and worst of all — they weren’t even getting great results for his clients.
On the surface, it looked like growth: more clients, more team members, more activity.
But in reality, it was a hamster wheel business — busy, but going nowhere.
The Profit Illusion Most Entrepreneurs Fall Into
Many entrepreneurs confuse revenue growth with profit growth. But the math tells a different story:
📊 According to a U.S. Small Business Administration report, only 40% of small businesses are profitable at any given time. The rest are breaking even or losing money.
📊 In service businesses, profit margins typically range from 10–20%, but I see many beginners operating at under 5% because they undercharge and over-hire.
And that’s exactly what my client was doing. He had plenty of clients — but because he charged extremely low service fees, he needed more and more clients just to hit his modest revenue target.
That, in turn, required more employees, more management, and more complexity.
Result: High stress, low profit, zero scalability.
The Hack: Raise Your Prices
This is the part you probably won’t do.
But it’s the single fastest way to multiply profit margins.
When you increase your service charges:
You directly impact profit.
Example: If you go from charging $500/month to $1,000/month per client, your profit doesn’t just double — it often triples or quadruples because your costs stay roughly the same.
You reduce the number of clients you need.
$3,000/month revenue at $500/client = 6 clients.
$3,000/month revenue at $1,000/client = 3 clients.
Fewer clients = less overhead, less chaos, fewer employees required.
You increase client quality.
Higher-paying clients are usually more committed, less demanding on trivial issues, and easier to get results for.
You create space for better results.
With fewer clients, your team can actually focus on delivery. Better results = stronger case studies = more high-paying clients.
You unlock true scalability.
With higher margins, you can afford to hire better talent, invest in systems, and reinvest in marketing without bleeding cash.
Real-World Proof:
McKinsey research shows that a 1% price increase can lead to an average 8% increase in operating profits — making price the most powerful lever for profitability.
Bain & Company found that companies focusing on value-based pricing (instead of low-cost competition) are 81% more profitable than those who don’t.
In my own experience, I’ve seen my clients go from 5% margins to 30%+ simply by doubling their rates and trimming unnecessary staff.
The Lesson:
Revenue is vanity.
Profit is sanity.
And cash flow is reality.
The fastest way to triple your profit is not chasing more clients, not hiring more people, not adding more services…
It’s simply charging more for what you already do.
Yes, some clients will say no. But the ones who say yes will value you more, stick longer, and fuel your growth without burning you out.
💡 Action Step:
Look at your current pricing. If you doubled it tomorrow, how many clients would you realistically need to hit your revenue goal?
Write that number down in the comments. That’s your new benchmark.
🔥 Now let me ask you:
Have you ever tried raising your prices? What happened?
Drop your experience below — I’d love to hear.
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Do This To 3X Your Profits Quickly [Spoiler: It's Simple]
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