The Apex CEO Playbook for Protecting Margin, Maintaining Trust, and Leading Through Turbulence

In 2017, we got hit with a margin shock that almost broke the business.

Tariffs landed overnight and increased our landed cost by 18% instantly. No warning, no phase-in period — just a direct blow to profitability. Years of operational discipline evaporated in a single government announcement.

We did what most founders do in that moment: we negotiated hard with our factories.
We clawed back a little. But only a little.

The truth was unavoidable — the tariff increase was bigger than any concession we could negotiate. Our margin had collapsed. If we didn’t act, the business would soon be underwater.

That meant one thing:
We had to raise prices… on Amazon and Home Depot.

And they weren’t thrilled.

The Standoff That Nearly Broke Us — and Ultimately Saved Us

Both giants said the same thing in the early meetings:

“Absolutely not.”

Retailers hate price increases. They fight them aggressively because they fear customer backlash and shrinking demand.

But we had a choice:

1. Hold firm and risk losing orders, or

2. Back down and watch the company bleed out.

We chose to hold firm.

To show we were serious, we did something most founders would never consider:

We stopped shipping to Amazon for three months.

It was painful.
Cash flow tightened.
Tension skyrocketed.
There were days we questioned everything.

But that hard stance sent a message nothing else could:

We’re not bluffing. This increase keeps us alive.

Eventually, the buyers returned to the table — willing to listen.
We rebuilt terms, restored shipments, and protected our margin.
That decision — although brutal — kept the company healthy and paved the way for future growth.

That experience taught me something every founder eventually learns:

If you won’t protect your margins, no customer will do it for you.

Below is the exact framework I now teach CEOs who need to raise prices strategically, confidently, and without losing their best accounts.

Chapter 2: Diagnose the Real Margin Squeeze

Never raise prices based on gut feeling.

Margins erode for several reasons:

• Input + material costs

• Freight and fuel

• Currency movement

• Tariffs

• Labor cost inflation

Your job is to understand the real cause and quantify it accurately.

That’s where the Raise-or-Ruin Matrix comes in:

• What happens if you don’t raise prices?

• How much volume might you lose if you do?

• At what point does margin collapse make the decision for you?

Data removes emotion — and gives you the confidence to hold the line.

Chapter 3: Pricing Psychology 101 — Why Customers Accept Good Increases

Your best customers won’t leave over a reasonable price increase.

They leave when:

• It feels unfair

• It feels sudden

• It feels poorly justified

Pricing psychology is simple:

Customers compare the new price to their reference anchor — past pricing or competitor pricing. If you frame the change well and reinforce the value they still receive, they’ll tolerate the increase.

You must show:

• The cost drivers

• The value enhancements

• The relative competitiveness

You’re not gouging them.
You’re keeping the business — and their supply — stable.

Chapter 4: Crafting the Increase — How Much, How Fast, and For Whom

Great pricing strategies aren’t one-size-fits-all.

You adjust based on customer type:

• High-LTV customers: smaller or phased increases

• Low-margin customers: steeper bumps

• Occasional buyers: full increase immediately

Your model should blend:

• Cost-plus pricing: proves the increase is necessary

• Value-based pricing: justifies the premium you’ve earned

Your job is to protect the business, not subsidize your least profitable accounts.

Chapter 5: Messaging That Actually Works

Most price-increase letters fail because they’re vague or defensive.

Great messaging is:

• Transparent

• Data-driven

• Customer-centric

Your communication should include:

1. The specific cost pressures

2. Why the increase is unavoidable

3. What investments you’re continuing to make

4. How you’re minimizing the impact on them

When customers understand the “why,” resistance drops dramatically.

Chapter 6: Negotiating with Big Buyers — Turning “Absolutely Not” into Agreement

Big retailers push back hard. That’s their job.

But they also respect:

• Consistency

• Data

• Leverage

• Resolve

Tools that shift the negotiation:

• Strategic stockouts (when necessary)

• Exclusive bundles or SKUs

• Multi-year volume commitments

• Payment term adjustments

• Freight or logistics trade-offs

You need a give-get strategy — but the “get” must include your new pricing.

Remember:
If they sense hesitation, they’ll push harder.
If they sense conviction, they’ll eventually adjust.

Chapter 7: Locking In Gains — Retention After the Increase

Once your new prices go into effect, the work is not done.

You must actively:

• Monitor churn

• Reinforce value

• Communicate improvements

• Conduct quarterly “value audits” with top accounts

And most critically:

Don’t wait five years to raise prices again.

Small, predictable increases are far easier for customers to accept than massive jumps.

Pricing is a discipline — not a one-off event.

Conclusion: Margin Protection Is Leadership

Raising prices isn’t greedy.
Raising prices is stewardship.

It keeps your business healthy.
It keeps your customers supplied.
It keeps your team employed.
It keeps your future intact.

Founder-CEOs who understand this don’t hesitate when it’s time to act.
They diagnose the problem, communicate transparently, negotiate firmly, and stand their ground.

Because they know the truth:

A business without margin is a business without mission.

If you want help modeling your Raise-or-Ruin scenarios or preparing your price-increase strategy for your biggest buyers, I’m happy to walk you through it.