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Coffee Shop Owner Worries About Raising Prices, Dave Ramsey Says Everyone Else Already Did

MarketDash Editorial Team
11 days ago
A Pittsburgh coffee shop owner called Dave Ramsey's podcast worried about how to raise prices without losing customers. Ramsey's advice was simple: stop overthinking it. In today's economy, everyone expects prices to go up—and they'll understand why yours need to as well.

Here's a business problem that probably sounds familiar: your costs are up, your margins are shrinking, and you're terrified to raise prices because what if everyone leaves? That's exactly where Trenton found himself when he called into Dave Ramsey's "EntreLeadership" podcast looking for advice.

Trenton runs a coffee shop and roastery in Pittsburgh with his wife. Last year they pulled in about $500,000 in revenue with a team of around 10 people split between part-time and full-time roles. The problem? Green coffee beans—the raw material that makes the whole business work—have gotten significantly more expensive over the past year.

The Fear of the Price Increase

His concern wasn't just about retail customers walking through the door. Trenton was particularly worried about wholesale clients like restaurants and grocery stores. "We want to be fair to our customers," he explained, "but we also need to be fair to us to keep our business healthy."

It's the classic small business dilemma: you care about your customers, you value those relationships, and the last thing you want is for people to think you've gotten greedy. So you absorb the costs for as long as possible, hoping things will somehow get better.

Ramsey, a personal finance expert and entrepreneur himself, had zero patience for this kind of hand-wringing. His advice? Just raise the prices already.

Everyone's Costs Are Up

"We live in an environment where everything price increased," Ramsey told him. "If I walked into a coffee shop and randomly the price had gone up, I wouldn't be going, 'Oh, Trenton got greedy.' I'd be going, 'Man, his cost probably went up.'"

The wholesale client anxiety? Ramsey dismissed that too. Those restaurants and grocery stores are dealing with cost increases from every single one of their suppliers. They get it. And if they don't? "If the only way you keep them as a customer is you lose money, then we don't need them as a customer," Ramsey said bluntly. "It doesn't work anymore."

Ramsey also pushed back against the impulse to over-explain or over-apologize. Keep it simple, he suggested. A quick heads-up acknowledging that costs have risen is enough. "The reason for these increases is not to line my pockets. It's because my costs have all gone up," he offered as an example of the right message.

The Proof Is in the Publishing

To illustrate the point, Ramsey shared his own experience. His publishing team was losing money because paper costs had jumped. They did a market study and realized they were practically the only ones still charging the old prices. Everyone else had already moved from $22 books to $32 or $34.

"When we moved ours up and were the same price as everybody else in the market, we did not get a single complaint," Ramsey said. Not one. Customers understood the reality of the situation because they were seeing it everywhere else.

That's the reassuring part for business owners like Trenton: people aren't living in a vacuum. They're buying groceries, filling up gas tanks, paying utility bills. They know prices are up across the board. "You're just passing on your hard costs. My labor costs and my price of goods sold have gone up substantially," Ramsey emphasized.

Ramsey wrapped up the call with encouragement rather than tough love. "You're a good man," he told Trenton. "You're the kind of people that win in business because you care about the customer. You care about the perception of your brand."

The takeaway? That caring instinct is valuable, but it shouldn't stop you from running a sustainable business. Raise the prices. Your customers will understand. And if they don't, they probably weren't going to stick around anyway.

Back to News

Coffee Shop Owner Worries About Raising Prices, Dave Ramsey Says Everyone Else Already Did

MarketDash Editorial Team
11 days ago
A Pittsburgh coffee shop owner called Dave Ramsey's podcast worried about how to raise prices without losing customers. Ramsey's advice was simple: stop overthinking it. In today's economy, everyone expects prices to go up—and they'll understand why yours need to as well.

Here's a business problem that probably sounds familiar: your costs are up, your margins are shrinking, and you're terrified to raise prices because what if everyone leaves? That's exactly where Trenton found himself when he called into Dave Ramsey's "EntreLeadership" podcast looking for advice.

Trenton runs a coffee shop and roastery in Pittsburgh with his wife. Last year they pulled in about $500,000 in revenue with a team of around 10 people split between part-time and full-time roles. The problem? Green coffee beans—the raw material that makes the whole business work—have gotten significantly more expensive over the past year.

The Fear of the Price Increase

His concern wasn't just about retail customers walking through the door. Trenton was particularly worried about wholesale clients like restaurants and grocery stores. "We want to be fair to our customers," he explained, "but we also need to be fair to us to keep our business healthy."

It's the classic small business dilemma: you care about your customers, you value those relationships, and the last thing you want is for people to think you've gotten greedy. So you absorb the costs for as long as possible, hoping things will somehow get better.

Ramsey, a personal finance expert and entrepreneur himself, had zero patience for this kind of hand-wringing. His advice? Just raise the prices already.

Everyone's Costs Are Up

"We live in an environment where everything price increased," Ramsey told him. "If I walked into a coffee shop and randomly the price had gone up, I wouldn't be going, 'Oh, Trenton got greedy.' I'd be going, 'Man, his cost probably went up.'"

The wholesale client anxiety? Ramsey dismissed that too. Those restaurants and grocery stores are dealing with cost increases from every single one of their suppliers. They get it. And if they don't? "If the only way you keep them as a customer is you lose money, then we don't need them as a customer," Ramsey said bluntly. "It doesn't work anymore."

Ramsey also pushed back against the impulse to over-explain or over-apologize. Keep it simple, he suggested. A quick heads-up acknowledging that costs have risen is enough. "The reason for these increases is not to line my pockets. It's because my costs have all gone up," he offered as an example of the right message.

The Proof Is in the Publishing

To illustrate the point, Ramsey shared his own experience. His publishing team was losing money because paper costs had jumped. They did a market study and realized they were practically the only ones still charging the old prices. Everyone else had already moved from $22 books to $32 or $34.

"When we moved ours up and were the same price as everybody else in the market, we did not get a single complaint," Ramsey said. Not one. Customers understood the reality of the situation because they were seeing it everywhere else.

That's the reassuring part for business owners like Trenton: people aren't living in a vacuum. They're buying groceries, filling up gas tanks, paying utility bills. They know prices are up across the board. "You're just passing on your hard costs. My labor costs and my price of goods sold have gone up substantially," Ramsey emphasized.

Ramsey wrapped up the call with encouragement rather than tough love. "You're a good man," he told Trenton. "You're the kind of people that win in business because you care about the customer. You care about the perception of your brand."

The takeaway? That caring instinct is valuable, but it shouldn't stop you from running a sustainable business. Raise the prices. Your customers will understand. And if they don't, they probably weren't going to stick around anyway.