Why We Decided to Raise Prices at ProjectApp (And What Happened When We Did)
The most uncomfortable moment wasn't telling the client the price. It was convincing myself that we were worth it. This is the story of that decision.
Project App
Engineering Team
There's a conversation that service company founders rarely have in public: the one about prices. And I don't mean debating whether to charge by hour or by project — I mean something deeper: the moment when you decide you're no longer going to sell cheap. That the value you deliver deserves a higher price. That you prefer to have fewer but better clients than many clients who pay you like you're a generic vendor. That decision we made at ProjectApp. And it was uncomfortable. And it was the best decision we've made.
The Fear Nobody Talks About
When a service company charges little, there's a reason that's rarely said out loud: fear. Fear that if you raise the price they'll say no. Fear that the client will go to the competition. Fear that you're not yet 'good enough' to charge more. I felt that fear. And it's completely logical at the start — when you don't have proven success cases, when the market doesn't know you, when you need to gain experience. Charging less at the beginning can be a valid strategy. The problem is when that strategy becomes permanent.
"The price you charge is the clearest signal you send to the market about how you value yourself. And the market believes you."
— A lesson I learned late
What Happens When You Charge Too Little
Working with low prices has consequences that go beyond monthly revenue:
- The type of client you attract has less tolerance for investing in their operation — which makes doing good work harder.
- With tight margins, it's impossible to invest in the team, processes, and quality you need to grow.
- You become the interchangeable vendor — the one who can be replaced by someone who charges a bit less.
- The market perceives you as a commodity, not a specialist. And that perception is very hard to change from the inside.
- The team feels it. When projects are undervalued, the energy and care put into them also drops.
The Decision
At ProjectApp there came a point where we had well-executed projects, satisfied clients, and a team that knew exactly what it was doing. But the prices didn't reflect that. We were still competing in the same range as months earlier, when we were a company without the same success cases, without the same methodology, without the same delivery level. We made the decision: we were going to raise prices and target larger companies that truly valued what we could do.
The Signal That It's Time to Raise Prices
When your clients don't negotiate the price, when they recommend you without you asking, and when the projects you enjoy most are the most complex ones — you're probably already charging below what you're worth.
What Changed When We Raised Prices
What I expected to happen: some potential clients would say no. That happened. What I didn't expect: everything else that changed.
The Type of Client Changed
Companies that came after raising prices had more defined processes, more structured teams, and a clearer vision of what they wanted to build. The work became more interesting and the projects had better outcomes.
The Sales Conversation Changed
When you charge well, the sales conversation changes. You're no longer justifying the price — you're explaining the value. And there's an enormous difference between those two conversations.
The Quality of Team I Can Hire Changed
With better margins, you can hire better. And a better team delivers better projects. The virtuous cycle that's impossible when you're compressed on price.
Our Market Perception Changed
The price also communicates. A company that charges well is perceived as a specialist, not a commodity. And that perception opens doors that a low price closes.
Key Takeaways
Key Takeaways
- 1The price you charge is the clearest signal you send to the market about how you value yourself.
- 2Charging too little attracts the wrong type of client and makes doing good work harder.
- 3Raising prices isn't just a financial decision — it's a positioning decision about what kind of company you want to be.
- 4With better margins you can invest in team, quality, and processes. The virtuous cycle only starts there.
- 5The 'noes' that come from raising prices are part of the process. Not every client is the right client.
ProjectApp is in a moment of deliberate transition: toward larger projects, companies with greater investment capacity, and more complex developments that allow us to do our best work. That transition has a price — literally. And we're comfortable with that. Because we understood that the sustainability of a service company doesn't come from having many clients at any price. It comes from having the right clients at the price that reflects what you're truly worth.
If you're looking for a development team that builds with the care and methodology your operation deserves, let's talk. The projects we specialize in most are exactly the most complex ones.