Just because you can eat that 10 lbs hamburger, doesn’t mean you should. Business is the same way. It’s true about a lot of things, honestly. Just because something is possible doesn’t make it right. That’s what I’m talking about when I talk about capitalism with a social conscience. It’s what I’m talking about when I repeat phrases like “patient capitalism” and non-greedy capitalism.
The difference between Can and Should is a very fine line, but it’s there. It’s there when you look at your expenses, and your income, and realize that if you just raise the prices by $100 more per month, you could be rolling in the money. And it might very well be on par with the local prices, but this is one of those situations where you really need to ask yourself, “Should I?”
I personally feel the only time you should raise prices is when you need the money, and raising the prices wouldn’t be putting them out of the normal range of prices. If you consistently have the lowest price around, you will be able to raise prices without issue, because you can maintain that low price, all while keeping your profits. It’s about not being greedy, and maintaining a respectful profit while also maintaining a reasonable price.