Ryan Brady wrote this edition of Starting Small. Ryan used to be a small-business owner and now writes about business lending at NerdWallet. Learn more about him here.
In this issue
Try this: Set higher prices to attract better customers.
Apply for this grant: $50,000 from AT&T.
Did you know? You can see who’s actually getting SBA loans.
Are your prices holding you back?
I recently came across a Reddit thread where small-business owners were talking about the benefits of charging more. And some of the comments surprised me.
Yes, upping your prices means you make more money per sale (duh). But a lot of the discussion revolved around something else entirely: better customers, more flexibility and fewer headaches.
Agency owners, SaaS sellers, interior designers, mechanics, web developers and others all weighed in. Here’s what they had to say.
Higher prices can be a filter
A lot of new businesses start out charging too little.
Sure, sometimes it helps to undercut the competition to land your first few sales, get online reviews or hone your process as you get your business off the ground. But once established, those lower prices can start to drag your business down.
Here’s how one Redditor put it: “Generally speaking, people with the smallest budget need the most help and want the most for their money.”
“It’s a law of nature,” another wrote. “The less a client pays, the more difficult they'll be at every turn.”
On the other hand, one Redditor described raising prices as a filter for both better-paying clients and clients who value your work more. “They see it as an investment, not a cost to minimize. That tends to translate into better communication, clearer expectations and less nitpicking.”
Higher prices can free up time to do better work
When you charge more, you may be able to serve fewer customers or make fewer sales while still bringing in the same amount of revenue (or more).
That can mean less time spent on client meetings, administrative to-dos, product shipments and returns and more. You can put that time back into delivering a better service or product to the customers that are willing to pay more.
Over time, this can have a sort of flywheel effect: Better work can justify higher prices, and higher prices can give you more breathing room to keep improving. That’s a pretty strong win-win, if you ask me.
Your customers might expect it anyway
People see price increases all the time. Rent, utilities, business insurance, your own vendors — costs go up. As expenses increase, sometimes your only way to protect your margins is to pass costs on to customers.
Nearly half of small-businesses said they raised prices in the previous 12 months in response to recent financial challenges, like increased cost of goods sold, according to the Federal Reserve’s 2025 Small Business Credit Survey. And the older the business, the more likely they were to raise prices.
The trick is to stop treating your prices like they’re permanent.
“Most apprehension on price increases is in the owner’s mind, not the customer’s,” wrote one Redditor. “Keep focusing on the value you deliver and don't be afraid to keep refining your pricing as you go,” wrote another.
How to raise prices effectively
Raising prices might ruffle some feathers, especially with current or repeat customers. That’s why it’s important to make sure your business can weather the loss if some customers walk away.
If your cash flow is super tight and losing any clients means not being able to cover future expenses, now might not be the right time to raise prices. But if you’re ready to do so, here’s how.
Know the going rates
Knowing where you stand among competitors price-wise can help you decide how much room you have to raise rates, especially if you’re currently charging below market. Multiple Redditors described getting better clients after moving closer to normal industry rates.
The simplest place to start is by looking up price info on competitors’ websites. If that’s not an option, try reaching out to sales folks yourself or asking family or friends to get quotes.
You can also look at what your own customers say about your prices. For example, you can comb through customer reviews, social media comments or posts on third-party apps like Nextdoor to get a sense if customers feel they paid a premium or got a bargain.
Raise prices strategically
How you raise prices matters. The right approach will depend on your business, your customers and how established you are. Here are a few tactics you can try out.
If you’re just starting out:
Price higher than you think. A lot of new businesses do the opposite. A good way to test the market is to price higher than you think you can get (or higher than feels comfortable). You can always adjust down if needed.
Frame it as a temporary discount. If you want to offer lower prices at first, one Redditor suggested having a regular price on the invoice, then applying a discount. “It's a lot easier to say ‘I can't offer that discount anymore’ than ‘I'm doubling my prices,’” they wrote.
If you’re already making sales:
Start with resource-intensive customers. If you have “problem” customers you wouldn’t mind saying au revoir to, you can start price increases with them. If they stay, you’re better compensated for the extra effort and time it takes to work with them. And if not? You may free up time for better-fit customers.
Test higher prices with new customers. Try raising your prices for the next few new customers that come your way. This lets you test demand without surprising current clients. Pay attention to who says yes and whether those higher-paying customers are easier to work with.
Explain what’s changing. Customers may be more open to a price hike when they know the reason behind it. For example, you might point to higher business costs (such as tariffs), faster turnaround times or improved quality.
Raise prices in smaller, more frequent increments. Waiting too long between price increases can force you into one large price increase that may be jarring to some. Smaller, more regular increases can be easier for customers to stomach (and easier for you to communicate).
Give it time
Sales volume may go down a little. You should be prepared for that. But you also don’t want to reverse course too quickly before results have time to show.
In another Reddit thread on the same topic, one user wrote, “If you're on the fence, I'd say the honest test isn't ‘will I get fewer leads’ (yes), it's ‘can I survive 60-90 days of a quieter pipeline while the better fit ones find you.’”
Grant opportunity: $50,000 from AT&T
Applications are now open for the annual AT&T Small Business Contest, which offers a grand prize of $50,000 to one lucky entrepreneur. The winner will also receive a year of AT&T service with a new device and mentorship resources.
Four runners-up will receive $5,000 each.
The application deadline is July 31. To apply, you’ll need to get those creative juices flowing and complete two short essays (max 750 words each). In the first essay, you’ll talk about your business, its mission and how you’ll use the $50,000 grant. In the second, you’ll explain how your business aligns with AT&T’s brand purpose of: Connecting Changes Everything.
To qualify, you need to be based in the U.S. or Puerto Rico. You must have one to five locations and 99 or fewer full- or part-time employees. To date, this program has awarded grant funding to 11 small businesses.
If this one’s not a fit for you (or if you just feel inspired to fill out more application forms), check out this list of 50+ small-business grants. We regularly update this page with new opportunities and upcoming deadlines.
— Randa Kriss
Here’s who’s actually getting SBA loans
I write about small-business loans all day. So something I like to do from time to time is dive into the Small Business Administration’s lender reports (Nerd alert!).
The coolest report they publish, in my opinion, is the 7(a) and 504 Segment Report.
Here, you can explore what kinds of businesses have received SBA 7(a) and SBA 504 loans so far in fiscal year 2026. That year began Oct. 1, 2025.
For example, as of this writing, I can see that for businesses that got SBA 7(a) loans:
16% were startups.
14% had been in business for two years or less.
63% had five or fewer employees.
89% got the loan from a bank, as opposed to a credit union or lending company.
The top funded industries were accommodation and food services, construction and retail.
Seeing these breakdowns can show you that SBA loans may be more accessible than you think. It’s still rare to get one as a startup, but you don’t need to be a massive, well-established business with lots of employees.
Another report worth checking out — especially if you’re starting a business — is the SBA’s Microloans Segment Report. SBA microloans are a good startup-friendly option if you need cash to launch your business.
Looking for more start-up friendly financing options? Check out NerdWallet’s roundup of startup business loans.
— Ryan Brady