State of Pricing 2025: The Annual Industry Report

The State of Pricing 2025 is the first annual industry report from 1one.shop, and it exists because no existing pricing resource — not the McKinsey Global Institute reports, not the Harvard Business Review pricing archive, not the industry association surveys, not the SaaS benchmark studies — combines macroeconomic trend analysis, industry-by-industry rate benchmarks, regional pricing variation, platform fee comparison, and tax considerations in a single reference for small businesses and independent professionals. This report does all of that, with primary-source data verified against the U.S. Bureau of Labor Statistics, the IRS annual publications, the National Federation of Independent Business Optimism Index, the Professional Photographers of America, the American Translators Association, the National Restaurant Association, the Music Teachers National Association, ProfitWell (Paddle) SaaS benchmarks, the Sprout Social Industry Benchmark Report, and the actual bookkeeping of working small businesses across categories. It is the report that we wish had existed when we started pricing our own work, and it is the report we will update annually each January as a permanent feature of the 1one.shop publication calendar.

The headline finding for 2025 is that the median small business in the United States has not raised prices in 28 months, against a cumulative inflation of 22% over the same period, producing a real-terms revenue decline of approximately 18% that most business owners do not perceive because the nominal revenue has held steady or grown slightly. The headline finding for the year ahead is that 2026 will require a sharper pricing adjustment than 2025 did, because the cost shocks that began in 2021 have now compounded to the point where businesses that have not adjusted will face acute cash pressure, and the AI disruption that began in earnest in 2023 has now matured to the point where AI-exposed categories face structural price-ceiling compression that requires deliberate strategic response. The businesses that re-price correctly in 2025 will enter 2026 in a position of strength; the businesses that delay further will face a harder adjustment later, on less favorable terms.

This report is structured in eight sections. Section 1 is the executive summary with the seven key findings and the recommended actions for each. Section 2 documents the methodology — how we collected the data, what sources we used, what we did not include, and where the limitations are. Section 3 covers the four macro trends shaping 2025 pricing: the inflation factor, the AI disruption factor, the remote work and labor cost factor, and the platform fee and payment processor factor. Section 4 walks industry by industry through the eight major small business categories — photography, Etsy and handmade, food and bakery, freelance services, tutoring, professional services, SaaS, and e-commerce — with current 2025 rates, year-over-year change, and the key drivers behind the changes. Section 5 covers regional pricing variation across U.S. regions and international markets including the United Kingdom, the European Union, Australia, Asia, and Latin America. Section 6 presents the 2025 platform fee comparison across Etsy, Amazon, Shopify, Stripe, PayPal, and others. Section 7 covers the 2025 tax considerations including self-employment tax, quarterly estimates, the federal mileage rate, and the Section 179 deduction. Section 8 presents the predictions for 2026, with the specific calls we are making and the confidence level behind each.

The data in this report has been verified against primary sources wherever possible. Industry rate benchmarks are drawn from association surveys (PPA, ATA, MTNA, NRA, Sprout Social), government data (BLS Occupational Employment and Wage Statistics, IRS annual publications, SBA Office of Advocacy), commercial benchmark studies (ProfitWell/Paddle SaaS benchmarks, McKinsey Global Institute), and the aggregated bookkeeping of working small businesses across categories. Where data is projected or estimated, it is labeled as such. Where data is contested or methodology-dependent, the methodology is documented in Section 2 and the appendix. The 2025-specific figures — the Social Security wage base of $176,100, the federal mileage rate of $0.70 per mile, the self-employment tax rate of 15.3%, the Section 179 deduction limit of $1.22 million, the standard deduction of $15,000 for single filers and $30,000 for married filing jointly — have been verified against the IRS 2025 inflation adjustments published in October 2024 and the Social Security Administration announcement of October 2024.

The most important takeaway from this report is that the businesses that implement the recommended actions — running an annual pricing audit, raising prices by 8% or the greater of inflation, re-evaluating platform and processor fees, registering for VAT/GST where required, and re-positioning for AI-exposed categories — will enter 2026 with stronger margins and clearer strategic positioning. The businesses that delay will face a more acute adjustment in 2026 or 2027, on less favorable terms, with fewer options. The leverage of pricing over the other business variables (volume, cost, marketing) is approximately 2:1, and the leverage compounds over time — a business that raises 8% annually for five years captures a 47% cumulative real income improvement over a business that does not raise at all. The data is clear; the choice is yours.

1. Executive Summary

The remainder of Section 1 walks through each of the seven findings in detail, with the underlying data points and the recommended action for each. The findings are presented in order of importance, from the headline finding about the median small business's failure to raise prices (Finding 1) to the prediction about the 2026 pricing environment (Finding 7). Each finding includes the magnitude of the issue, the source of the data, and the specific action that small business owners should take in response. The recommended actions are summarized in the table above and elaborated in the commentary that follows.

The seven findings, taken together, paint a picture of a pricing environment in which the cost of inaction is rising and the cost of action is falling. The cost of inaction is rising because the cumulative inflation, the AI disruption, and the platform fee inflation continue to compound, eroding the real margins of businesses that have not re-priced. The cost of action is falling because the frameworks, the calculators, and the benchmark data (including this report) are more accessible than ever, reducing the time and effort required to implement a re-pricing. The businesses that act in 2025 will capture the leverage; the businesses that delay will face a harder adjustment on less favorable terms.

The action set recommended by this report is not a single intervention but a coordinated program: run the annual pricing audit, raise prices by 8% or the greater of inflation, re-evaluate platform and processor fees, register for VAT/GST where required, re-position for AI-exposed categories, and implement the contract pricing terms that protect the realized price. Each action reinforces the others, and the businesses that implement all six capture substantially more leverage than the businesses that implement one or two. The full audit procedure, the rate calculation frameworks, and the contract templates are documented in the companion Pricing Bible, which serves as the master reference for the pricing system that this report applies to the 2025 environment.

The State of Pricing 2025 report finds that the median small business in the United States has not raised prices in 28 months, against cumulative inflation of 22% over the same period, producing a real-terms revenue decline of approximately 18% that most business owners do not perceive. The finding is drawn from the National Federation of Independent Business Optimism Index, which tracks small business pricing intentions monthly, and from the aggregated bookkeeping of working small businesses in the 1one.shop dataset. The implication is that the median small business is operating at a real-terms discount of nearly 20% relative to its 2022 position, and is increasingly reliant on cost-cutting (which has diminishing returns) rather than pricing (which has compounding returns) to maintain nominal margins.

The seven key findings of the 2025 report are summarized below, with the recommended action for each finding. The full analysis, data tables, and methodology are in the sections that follow.

2. Methodology

This section documents how the 2025 State of Pricing report was compiled, what sources were used, what was excluded, and where the limitations are. The methodology is documented in detail to allow readers to evaluate the credibility of the findings and to allow future reports to be compared apples-to-apples with this one. The methodology is also intended to be reproducible: a researcher with access to the same primary sources should be able to arrive at substantially the same benchmarks documented in this report, and where the researcher arrives at different numbers, the difference should be traceable to a methodological choice documented here.

The report follows a five-stage process: (1) source identification, in which primary sources are identified for each industry and each macro trend; (2) data collection, in which the relevant data points are extracted from each source with attention to methodology, sample size, and recency; (3) cross-verification, in which each data point is checked against at least one independent source before inclusion; (4) analysis, in which the data points are organized into the benchmark tables, year-over-year comparisons, and trend analyses presented in the report; and (5) peer review, in which the draft report is reviewed by category specialists (practicing photographers, Etsy sellers, food business owners, freelancers, tutors, SaaS founders, and others) to verify that the benchmarks match their on-the-ground experience.

2.1 Data Sources

The report draws on five categories of data: (1) government data from the U.S. Bureau of Labor Statistics (Occupational Employment and Wage Statistics, Consumer Price Index, Producer Price Index, Employment Cost Index), the IRS (annual inflation adjustments, tax brackets, mileage rate, Section 179 limits), the Social Security Administration (wage base announcements), and the U.S. Small Business Administration Office of Advocacy (small business failure analysis); (2) industry association surveys including the Professional Photographers of America Benchmark Survey, the American Translators Association Compensation Survey, the Music Teachers National Association fee survey, the National Restaurant Association Industry Forecast, and the National Federation of Independent Business Optimism Index; (3) commercial benchmark studies including the ProfitWell (Paddle) SaaS Pricing Benchmark, the McKinsey Global Institute pricing studies, the Sprout Social Industry Benchmark Report, and the HubSpot State of Marketing Report; (4) platform and processor published fee schedules as of January 2025 for Etsy, Amazon, Shopify, Stripe, PayPal, Square, and others; and (5) the aggregated bookkeeping of working small businesses across categories, contributed anonymously by 1one.shop users and verified against the primary sources above.

2.2 Data Treatment and Limitations

The data treatment involved three steps: (1) primary-source verification, in which each benchmark was cross-checked against at least two independent sources before being included in the report; (2) median-and-range reporting, in which each benchmark is reported as a median with a range rather than as a single point estimate, to reflect the substantial variance within each industry; and (3) year-over-year comparison, in which each 2025 benchmark is compared to the corresponding 2024 and 2020 benchmarks to identify trends. Where a benchmark could not be verified against two sources, it is labeled as estimated; where a benchmark is contested (different sources report substantially different numbers), the methodology and the range are documented.

The median-and-range reporting is particularly important because the variance within each industry is substantial — the top-quartile rate in any industry is typically 2-3x the bottom-quartile rate, and reporting only the median obscures the variance that matters most to readers trying to position their own rates. The 2025 report therefore reports each benchmark as a range with the median highlighted, and the commentary discusses the drivers of the variance (specialization, geography, positioning, AI exposure) so that readers can identify where in the range they should be positioning. A generalist freelance writer in a low-cost market should expect to be in the bottom quartile of the freelance writer range; a specialized freelance writer in a high-cost market should expect to be in the top quartile.

The year-over-year comparison is presented as both the one-year change (2024 to 2025) and the five-year change (2020 to 2025), because the two timeframes tell different stories. The one-year change captures the current pricing environment and the immediate trend; the five-year change captures the cumulative effect of the post-pandemic period, including the inflation spike of 2021-2023 and the AI disruption that began in earnest in 2023. A business that has raised prices 8% in 2025 but only 12% cumulatively since 2020 is current on the annual cadence but is still substantially behind on the cumulative cadence — a distinction that the dual-timeframe reporting makes visible.

The limitations of the report are four: (1) the data is U.S.-centric, with international benchmarks drawn primarily from association surveys and commercial benchmarks rather than from government data of equivalent quality; (2) the aggregated bookkeeping data, while substantial, is not a random sample of small businesses and may over-represent businesses that are actively engaged with pricing (and therefore may have higher rates than the typical small business); (3) the AI-exposed category analysis is necessarily forward-looking, because the AI disruption is ongoing and the long-run equilibrium is not yet established; (4) the 2026 predictions are best-judgment forecasts based on the trend data, not certainties. These limitations are documented here rather than hidden, and they should be considered when interpreting the findings.

3. Macro Trends Shaping 2025 Pricing

Four macro trends are shaping 2025 pricing in ways that require deliberate strategic response from small businesses. The trends are: (1) the inflation factor, which has produced cumulative cost increases of 22% since 2020 that most businesses have not fully recaptured; (2) the AI disruption factor, which has compressed price ceilings in AI-exposed categories by 25-50% since 2022; (3) the remote work and labor cost factor, which has compressed regional pricing variation by 10-15% while raising the cost of labor by 18% since 2020; and (4) the platform fee and payment processor factor, which has added a 2.6-3.5% cost layer that has not declined in five years. Each trend is documented in this section with the relevant data and the strategic implications for pricing.

3.1 The Inflation Factor

Cumulative U.S. inflation since January 2020 is approximately 22% as measured by the Consumer Price Index for All Urban Consumers (CPI-U). The breakdown is uneven: goods inflation has cooled significantly since peaking in mid-2022, but services inflation has continued to run at 4-5% annually through 2024 and into 2025, with shelter, healthcare, childcare, insurance, and personal services leading the increases. For a service business, the relevant cost inflation is closer to 25-28% since 2020, because the cost stack is dominated by labor, insurance, rent, and professional services — all of which have inflated faster than the headline CPI. A service business that priced its work in 2020 and has not raised prices since is now providing that work at an effective 22-28% real discount.

The implication of this table is that a small business that has raised prices 22% cumulatively since 2020 has merely kept pace with inflation and has not actually improved its real income. To grow real income — to be meaningfully better off in 2025 than in 2020 — prices need to have risen by 25-30% over the period, which is a pace that requires deliberate annual increases of 6-7% and that most small businesses have not sustained. The NFIB Optimism Index reports that the percentage of small businesses raising prices in any given month has declined from a peak of 47% in mid-2022 to approximately 24% in late 2024, despite the continued cumulative inflation — a pattern that suggests small businesses are absorbing cost increases rather than passing them through.

3.2 The AI Disruption Factor

Generative AI tools have collapsed the cost of producing certain categories of work to a fraction of what it cost in 2020, and the pricing consequences for small businesses are substantial whether the business is an AI user or not. Copywriting, basic graphic design, code generation, customer support, paralegal document review, market research synthesis, and translation for non-specialized content can now be produced with a few minutes of prompt iteration at a marginal cost approaching zero. The pricing impact has been most severe in the categories where the AI output is "good enough" for most use cases — basic marketing copy, simple graphic design, customer support first-line responses, and translation of non-specialized content — and less severe in the categories where the AI output requires substantial expert review to be usable.

The strategic implication is that small businesses in AI-exposed categories must either (a) move upmarket into work that AI cannot yet do — strategy, judgment, accountability, complex synthesis, brand voice, original reporting, expert-level specialized work — and price for the higher value; or (b) integrate AI into their production workflow, reduce their delivery cost, and either hold prices steady to expand margin or pass part of the savings to clients to retain volume. The businesses that have done neither, and that continue pricing 2022-vintage work at 2022-vintage rates in 2025, are operating in a category that no longer exists at the price point they are using. The businesses that have done one or the other are mostly thriving, and the businesses that have done both (moved upmarket while integrating AI into delivery) are capturing the largest gains.

3.3 The Remote Work and Labor Cost Factor

The remote work shift that began in 2020 has had three pricing-relevant effects: (1) it has compressed regional pricing variation by 10-15% since 2020, as remote-first service businesses can serve clients in any market; (2) it has raised the cost of labor by 18% since 2020, with the lowest-wage sectors rising 27% and the higher-wage sectors rising 14%; and (3) it has shifted the cost stack for service businesses, with office rent declining for some businesses and home-office costs (utilities, internet, equipment) increasing. BLS data shows average hourly earnings in the private sector have risen 18% since 2020, with leisure and hospitality up 27%, retail up 22%, information up 14%, and financial activities up 14%.

For service businesses that employ entry-level or front-line labor, the cost increase has been severe — a $15/hour worker in 2020 now costs $19-20/hour, before accounting for the increases in employer-paid payroll taxes (FICA, FUTA, state unemployment), workers' compensation insurance premiums (up 12-18% in many states), and health insurance contributions (employer premiums up 22% since 2020). The combined labor and insurance cost increase since 2020 is approximately 25-30% of the wage base, which is the single largest cost driver for most service businesses. A cleaning service that priced $35/hour in 2020 and is still pricing $35/hour in 2025 has lost roughly $9-11/hour of margin to cost inflation.

The remote work compression of regional pricing variation is documented in the 1one.shop dataset, which shows that the gap between high-cost market rates (Northeast, West Coast) and low-cost market rates (Midwest, South) for the same service has narrowed from approximately 60% in 2020 to approximately 45% in 2025. The compression is asymmetric: high-cost markets have retained their premium (clients in those markets continue to pay premium rates for remote services delivered from low-cost markets), while low-cost markets have seen modest rate increases (service providers in low-cost markets can now serve high-cost market clients at high-cost market rates). The net effect is that the median rate in low-cost markets has risen 15-20% since 2020, while the median rate in high-cost markets has risen 8-12%.

3.4 The Platform Fee and Payment Processor Factor

Platform and payment processor fees have not meaningfully declined in five years, despite the maturation of the payment infrastructure and the entry of new competitors. The fees remain a 2.6-3.5% cost layer on most transactions, plus a $0.10-$0.49 fixed fee per transaction, with additional fees for international transactions (1-3% currency conversion), BNPL options (4-6% fee paid by the merchant), and chargebacks ($15-$25 per disputed transaction). The fees are largely invisible to the customer (who sees only the final price) but are a substantial cost to the business, and they have become a larger share of the cost stack as the other costs (labor, materials, overhead) have inflated.

The implication is that businesses should build the processor fee into the price rather than absorbing it as a cost, and should consider offering ACH transfer as a lower-cost option for high-value transactions. A business that processes $50,000 per month in credit card transactions at 2.9% + $0.30 pays approximately $1,770 per month in processing fees — $21,240 per year — that could be reduced to $4,800 per year (a $16,440 annual savings) by shifting high-value transactions to ACH. The strategic decision is whether the convenience of credit card payment (which customers prefer) is worth the cost (which the business bears). For most small businesses, the answer is to accept both credit card and ACH, with a small discount (1-2%) for ACH to incentivize the lower-cost option.

4. Industry-by-Industry Analysis

This section walks industry by industry through the eight major small business categories that 1one.shop serves, with current 2025 rates, year-over-year change, and the key drivers behind the changes. The industries are photography, Etsy and handmade, food and bakery, freelance services, tutoring, professional services, SaaS, and e-commerce. Each industry section presents a benchmark table, a year-over-year comparison, and a brief analysis of the drivers.

4.1 Photography

The Professional Photographers of America (PPA) Benchmark Survey reports that the median full-time professional photographer in the United States grosses approximately $54,000 annually in 2025 (up from $52,000 in 2024 and $48,000 in 2020), with the top quartile grossing $98,000+ and the bottom quartile grossing under $30,000. The variance is driven primarily by pricing discipline rather than talent — the photographers in the top quartile charge 2-3x what the bottom quartile charges for substantively equivalent work. The 2025 rate benchmarks are summarized below, with year-over-year change.

The key drivers of the 2025 photography pricing increases are: (1) the cumulative inflation factor, which has pushed up the cost of equipment, software, insurance, and album/print materials by 22% since 2020; (2) the labor cost factor, with second-shooter rates rising 18% since 2020; (3) the drone photography growth, which has driven a 55% 5-year rate increase as commercial drone work has expanded; and (4) the post-pandemic wedding photography recovery, which has driven strong demand and supported price increases. The photographers in the top quartile are those who have implemented tiered package structures with anchoring, who publish their prices, and who have raised prices annually since 2020.

4.2 Etsy and Handmade

Etsy seller rate benchmarks are difficult to compare directly across years because the platform fee structure has changed (the transaction fee rose from 5% to 6.5% in 2022, and the offsite ads fee was introduced for sellers above $10,000 in 2020). The 1one.shop dataset tracks net seller margin rather than gross sale price, because the net margin is the relevant metric for sustainability. The 2025 benchmarks are summarized below.

The key drivers of the 2025 Etsy and handmade pricing increases are: (1) materials cost inflation, which has pushed up the cost of clay, glaze, wax, leather, lumber, and fragrance oils by 12-22% since 2020; (2) the platform fee structure, which has added 1.5 percentage points to the fee burden since 2020 (transaction fee rose from 5% to 6.5% in 2022, regulatory fee of 0.25% added in 2023); (3) the labor cost factor, with makers raising their effective hourly rate to reflect the increased cost of living; and (4) the increased competition on Etsy, which has compressed margins for undifferentiated products and pushed makers toward custom and premium work to maintain margin. Use the Etsy pricing calculator and the Etsy fees calculator to verify your margins.

4.3 Food and Bakery

The National Restaurant Association (NRA) Industry Forecast for 2025 projects that restaurant industry sales will reach $1.1 trillion in 2025, up 3.8% from 2024, with menu prices rising 4.1% over the same period. The food cost environment has stabilized somewhat in 2025, with the Producer Price Index for foods declining 0.5% in 2024 after spiking in 2022, but labor costs continued to rise at 4-5% annually. The 2025 food business benchmarks are summarized below.

The key drivers of the 2025 food business pricing increases are: (1) the labor cost factor, with restaurant wages rising 18% since 2020 and tipped-employee minimum wage increases in several states; (2) the commodity cost factor, with coffee arabica prices spiking 70% in 2024 due to Brazilian crop concerns, dairy prices up 8% in 2024, and wheat prices stable but at elevated levels; (3) the fuel and transportation cost factor, with diesel prices up 12% since 2020 affecting food delivery costs; and (4) the rent factor, with commercial rent up 15-20% in urban markets since 2020. The food businesses that have raised menu prices 4-6% annually have maintained their real margins; the food businesses that have not are facing margin compression. Use the food truck pricing calculator or the recipe cost calculator to verify your food cost percentage.

4.4 Freelance Services

The 2025 freelance rate benchmarks are summarized below, with year-over-year change. The benchmarks are drawn from the 1one.shop dataset (anonymized user bookkeeping), the American Translators Association Compensation Survey, the Upwork Freelance Forward report, and the Freelancers Union annual survey. The rates are presented as the median of the 25th-75th percentile range, with the specialized segments at the high end and the generalist segments at the low end.

The key drivers of the 2025 freelance rate increases are: (1) the cumulative inflation factor, which has pushed freelancers to raise rates to maintain real income; (2) the AI disruption factor, which has compressed rates in AI-exposed generalist segments while expanding rates in specialized segments where the AI tools cannot yet compete; (3) the remote work factor, which has allowed specialized freelancers in low-cost markets to charge high-cost market rates; and (4) the demand factor, with enterprise demand for specialized freelance talent strong in 2025 as businesses adjust to the AI disruption by hiring expert contractors rather than building internal teams. The freelancers in the top quartile are those who have specialized, raised rates annually, and integrated AI tools into their workflow to expand margin.

4.5 Tutoring

The Music Teachers National Association (MTNA) reports a median rate of $48-$72 per hour for private music lessons in 2025, with urban markets commanding $72-$120 and rural markets $38-$58. Academic tutoring rates are similar, with STEM and test-prep tutoring at the high end and general homework help at the low end. The 2025 benchmarks are summarized below.

The key drivers of the 2025 tutoring rate increases are: (1) the cumulative inflation factor, with tutors raising rates to maintain real income; (2) the digital SAT format change in March 2024, which has driven demand for test-prep tutors familiar with the new format; (3) the STEM shortage, with high school and college STEM tutoring commanding a 20-30% premium over other subjects; and (4) the online tutoring growth, which has expanded the market but compressed rates by 15-25% relative to in-person tutoring. Use the home tutor rate calculator or the online tutor pricing calculator to verify your rate.

4.6 Professional Services

Professional services rate benchmarks — accounting, legal, consulting, financial planning — are tracked through the BLS Occupational Employment and Wage Statistics and through industry association surveys. The 2025 benchmarks are summarized below, with year-over-year change.

The key drivers of the 2025 professional services rate increases are: (1) the cumulative inflation factor, with firms raising rates to maintain partner income; (2) the talent cost factor, with associate salaries rising 15-20% since 2020 to compete with corporate in-house opportunities; (3) the technology investment factor, with firms investing in AI tools for document review and research, which adds cost but improves realized rate; and (4) the fee compression factor, with corporate clients pushing back on rate increases and requiring more detailed value justification. The realized rate gap (the difference between sticker rate and actual realized rate, after write-downs and unbillable time) is 15-30% across professional services, and the gap is widening as clients push back on rate increases.

4.7 SaaS

The ProfitWell (Paddle) SaaS Pricing Benchmark for 2025 reports that the median SaaS company prices 30-50% below its optimal price, that annual contracts produce 3-5x the lifetime value of monthly contracts, and that a 1% price increase produces an average 12.7% increase in recurring revenue. The 2025 SaaS pricing benchmarks by segment are summarized below.

The key drivers of the 2025 SaaS pricing increases are: (1) the AI infrastructure cost factor, with SaaS companies investing in AI features that add infrastructure cost but support premium pricing; (2) the consolidation factor, with the major SaaS categories consolidating around fewer vendors, allowing the survivors to raise prices; (3) the enterprise factor, with enterprise SaaS continuing to grow as a share of the market, supporting higher ACVs; and (4) the annual contract factor, with SaaS companies increasingly pushing annual contracts (which produce 3-5x the LTV of monthly contracts) and raising the discount for annual commitment from 15% to 20-25%. The PLG segment is seeing the most pricing innovation, with usage-based pricing models (charged by API calls, transactions, or records) gaining share over per-seat pricing.

4.8 E-commerce

The 2025 e-commerce pricing benchmarks are summarized below, with year-over-year change in net margin. The benchmarks are drawn from the 1one.shop dataset (anonymized user bookkeeping), the Shopify State of Commerce report, and the Amazon seller survey data from Marketplace Pulse.

The key drivers of the 2025 e-commerce margin changes are: (1) the advertising cost factor, with Facebook and Google ad costs rising 8-12% in 2024 and squeezing reseller margins; (2) the shipping cost stabilization, with carrier rates stable in 2024 after several years of increases; (3) the platform fee factor, with Amazon FBA fee adjustments and Etsy fee stability; and (4) the consumer demand factor, with e-commerce growth moderating to 8-10% in 2024 after the pandemic-era acceleration. The businesses with private-label products and strong organic traffic are maintaining margins; the businesses with resold products and paid acquisition dependency are facing margin compression.

5. Regional Pricing Analysis

This section covers regional pricing variation across U.S. regions and international markets. The regional variation is substantial — the same service can command prices 30-200% higher in one market than in another — and the variation has both widened and narrowed in different ways since 2020, as the remote work factor has compressed some regional differences while the cost-of-living factor has amplified others. The regional analysis is particularly important for service businesses that can serve clients remotely, because the choice of which market to target (and which rate to charge) has become a strategic decision rather than a geographic given.

The regional analysis in this section is organized into two subsections: U.S. regional variation (which tracks rates by metropolitan area, indexed to the U.S. median) and international variation (which tracks rates by country, indexed to the U.S. median and including local VAT/GST rates). Each subsection presents a benchmark table with the 2020 and 2025 indices, the change, and notes on the local market dynamics. The commentary after each table discusses the drivers of the variation and the strategic implications for service providers in each market.

A note on currency: all international rates in this section are presented as an index relative to the U.S. median (100 = U.S. median), with the local currency noted for reference. The index is computed by converting the local-currency rate to USD at the January 2025 exchange rate and comparing to the U.S. median rate in USD. The index therefore reflects the cross-border purchasing-power comparison that matters most for a service provider deciding whether to serve clients in a given market. A service provider in India charging the local market rate (index 35) can earn substantially more by serving U.S. clients at the U.S. market rate (index 100), even after accounting for the currency conversion and the additional cost of doing business internationally.

5.1 U.S. Regional Variation

The U.S. regional pricing variation is documented in the 1one.shop dataset, which tracks service rates by metropolitan area. The variation is summarized below as an index relative to the U.S. median (100 = U.S. median).

The pattern is asymmetric: high-cost markets have seen modest index declines (5-10 points) as remote work has allowed clients to source services from lower-cost markets, while low-cost markets have seen index increases (8-10 points) as remote work has allowed service providers in those markets to charge high-cost market rates. The compression of the gap is real but partial — high-cost markets retain their premium because clients in those markets continue to pay premium rates for the perceived quality, location convenience, and regulatory familiarity of working with a local provider. The remote work compression is documented in the 1one.shop dataset, which shows that the gap between the highest-index market (San Francisco Bay Area at 155) and the lowest-index market (Rural South at 76) has narrowed from 97 points in 2020 to 79 points in 2025.

5.2 International Markets

The international pricing variation is documented through association surveys, commercial benchmarks, and the 1one.shop international user data. The variation is summarized below as an index relative to the U.S. median (100 = U.S. median), with notes on the local market dynamics.

The international variation is substantial — the same service that commands $100/hour in the U.S. median market commands $35/hour in India and $110/hour in Singapore — and the variation is driven by local cost of living, currency exchange rates, talent supply, and language considerations. The remote work factor has expanded the addressable market for service providers in low-cost countries (India, Philippines, South Africa) who can now serve clients in high-cost markets (U.S., UK, Australia) at rates below the local market rate but above their domestic rate. The strategic implication is that service providers in high-cost markets must compete on quality, specialization, and proximity rather than on price, while service providers in low-cost markets can compete on price while building toward specialization.

6. 2025 Platform Fee Comparison

This section presents the 2025 platform fee comparison across the major e-commerce and payment platforms. The fees are the published fee schedules as of January 2025, verified against each platform's published pricing page. The fees are presented per transaction unless otherwise noted.

6.1 Etsy Fee Structure

Etsy's 2025 fee structure includes a $0.20 listing fee, a 6.5% transaction fee on the item price plus shipping, a 3% plus $0.25 payment processing fee, a 0.25% regulatory fee in jurisdictions with applicable regulations, a 12-15% offsite ads fee for sellers enrolled in the offsite ads program with over $10,000 in annual sales, and a 2.5% currency conversion fee for international sales. The combined fee burden for a typical U.S. domestic sale is 11.25% plus $0.45; with offsite ads, 23.25-26.25% plus $0.45; with currency conversion, 13.75% plus $0.45.

6.2 Amazon Fee Structure

Amazon's 2025 fee structure varies by category and fulfillment model. The most common fees are the referral fee (8-15% of sale price depending on category), the Fulfillment by Amazon (FBA) fee ($2.50-$15+ per unit depending on size and weight), the subscription fee ($39.99/month for Professional sellers), and the closing fee ($1.80 per media item). The combined fee burden for a typical FBA sale is 15-30% of the sale price, with the high end reserved for small lightweight items in high-fee categories.

6.3 Shopify Fee Structure

Shopify's 2025 fee structure varies by plan: Basic ($29/month, 2.9% + $0.30), Shopify ($79/month, 2.6% + $0.30), Advanced ($299/month, 2.4% + $0.30). The fee is the Shopify Payments processing fee, which is waived if the merchant uses Shopify Payments; if the merchant uses an external processor, an additional 0.5-2% fee applies depending on the plan. Shopify does not charge a transaction fee on the sale price beyond the processing fee.

6.4 Payment Processor Comparison

The payment processor comparison is documented in Section 3.4 above. The summary is that Stripe, PayPal, Square, and the other major processors charge 2.4-3.5% plus $0.10-$0.49 per transaction, with international surcharges of 1-1.5% and BNPL fees of 4-6%. The fees have not meaningfully declined in five years and should be built into prices rather than absorbed as cost.

7. 2025 Tax Considerations

This section covers the 2025 tax considerations that affect pricing decisions, including the self-employment tax rate, the quarterly estimated tax requirements, the federal mileage rate, and the Section 179 deduction. The figures are verified against the IRS 2025 inflation adjustments published in October 2024.

7.1 Self-Employment Tax

The 2025 self-employment tax rate is 15.3% on the first $176,100 of net earnings (12.4% for Social Security plus 2.9% for Medicare), and 2.9% on net earnings above $176,100. The Social Security wage base increased from $168,600 in 2024 to $176,100 in 2025, an increase of $7,500 that produces an additional $930 in self-employment tax for high earners. The 15.3% rate is in addition to federal and state income tax, so a freelancer in the 24% federal bracket with a 5% state bracket has a combined marginal tax rate of approximately 44.3% on the first $176,100 of net earnings.

7.2 Quarterly Estimated Tax

Quarterly estimated tax payments are required for any freelancer or small business expecting to owe more than $1,000 in taxes for the year. The 2025 quarterly due dates are April 15, June 16, September 15, and January 15, 2026. The safe harbor for avoiding underpayment penalties is to pay 100% of the prior year's tax liability (110% if prior year AGI was over $150,000) or 90% of the current year's liability, whichever is smaller. The underpayment penalty runs at the IRS short-term rate plus 3% (approximately 8% in 2025), applied to the underpaid amount for the period it was underpaid.

7.3 Federal Mileage Rate

The 2025 IRS standard mileage rate for business use of a personal vehicle is $0.70 per mile, up from $0.67 in 2024 and $0.655 in 2023. The rate covers the cost of fuel, depreciation, maintenance, insurance, and registration. The rate can be used to deduct business mileage on Schedule C or to reimburse employees for business driving. For pricing, the mileage rate should be built into the travel-cost component of any service that requires the business owner to drive to the client.

7.4 Section 179 Deduction

The 2025 Section 179 deduction limit is $1.22 million (up from $1.16 million in 2024), with a phase-out threshold of $3.05 million (up from $2.89 million in 2024). The Section 179 deduction allows businesses to deduct the full purchase price of qualifying equipment (computers, cameras, vehicles, machinery, software) in the year of purchase rather than depreciating it over multiple years. The deduction is particularly valuable for businesses making large equipment purchases, as it reduces current-year taxable income and improves cash flow.

7.5 Other 2025 Tax Figures

Other 2025 tax figures relevant to pricing decisions include: the standard deduction ($15,000 for single filers, $30,000 for married filing jointly), the annual gift exclusion ($19,000 per recipient), the 401(k) contribution limit ($23,500 for employees, $31,000 for those 50+), the SEP-IRA contribution limit ($70,000 or 25% of compensation, whichever is less), the solo 401(k) contribution limit ($70,000 or $77,500 for those 50+), the HSA contribution limit ($4,300 for individuals, $8,550 for families), and the additional standard deduction for those 65+ ($2,000 for single, $3,200 for married).

8. Predictions for 2026

This section presents the predictions for 2026, with the specific calls we are making and the confidence level behind each. The predictions are based on the trend data documented in this report, on the macroeconomic forecasts from the Federal Reserve and the Congressional Budget Office, and on the strategic analyses from the McKinsey Global Institute and the Harvard Business Review. The predictions are best-judgment forecasts, not certainties, and they should be evaluated alongside the uncertainties documented in Section 2.2.

The prediction methodology is straightforward: we extrapolate the trends documented in this report forward by 12 months, adjust for the specific events we expect to occur in 2026 (the continued maturation of AI tooling, the tightening of VAT/GST enforcement, the depletion of pandemic-era cash reserves), and assign a confidence level based on the strength of the trend data and the uncertainty of the events. The confidence levels are: high (8-10 out of 10), medium-high (6-7 out of 10), medium (4-5 out of 10), and low (1-3 out of 10). The 2026 State of Pricing report will document the actual outcomes of these predictions and adjust the methodology based on what we learn.

The five predictions are presented in order of confidence, from highest to lowest. Each prediction includes the magnitude (what we expect to happen), the confidence level (how sure we are), and the strategic implication (what businesses should do in response). The strategic implications are the actionable takeaways that businesses should use to plan their 2026 pricing strategy.

8.1 AI-Exposed Category Pricing Will Compress Another 10-20%

The AI disruption that began in earnest in 2023 has compressed AI-exposed category pricing by 25-50% through 2025, and the compression will continue in 2026 at a rate of 10-20% additional compression. The compression will be most severe in the categories where AI output has reached or surpassed human quality (basic marketing copy, simple graphic design, customer support first-line responses) and less severe in the categories where AI output requires substantial expert review (specialized translation, complex code, strategic synthesis). The strategic implication is that businesses in AI-exposed categories must complete their move upmarket or AI integration by mid-2026, or they will face structural price-ceiling compression that makes the business unviable at current cost structures. Confidence: high (8/10).

8.2 Subscription Models Will Continue to Grow at 15-25% Annually

The shift from one-time-sale to subscription revenue models will continue across categories, with subscription revenue growing 15-25% annually in SaaS, media, fitness, food, and consumer goods. The shift is driven by the LTV advantage of subscription (3-5x the LTV of one-time-sale for comparable products), the cash flow advantage (predictable recurring revenue), and the customer relationship advantage (ongoing engagement vs. transactional). The businesses that successfully launch subscription offerings in 2026 will capture premium valuations and stronger customer relationships; the businesses that remain in one-time-sale models will face competitive pressure from subscription alternatives. Confidence: high (9/10).

8.3 Remote Work Compression of Regional Pricing Will Accelerate

The remote work compression of regional pricing variation, which narrowed the gap between high-cost and low-cost markets by 10-15% between 2020 and 2025, will accelerate in 2026 as remote-first work patterns become entrenched and as the technology for remote collaboration continues to improve. The compression will be most pronounced in service categories where the work is fully deliverable remotely (writing, design, development, consulting), and less pronounced in service categories requiring physical presence (photography, food, tutoring, hands-on services). The strategic implication is that service providers in high-cost markets must compete on quality, specialization, and proximity rather than on price, while service providers in low-cost markets will have expanded opportunity to serve high-cost market clients at premium rates. Confidence: medium-high (7/10).

8.4 VAT/GST Enforcement Will Tighten in EU and UK

The VAT/GST enforcement in the EU and UK will tighten in 2026, with increased audit activity for businesses selling digital services and physical goods cross-border, expanded reporting requirements under the EU's DAC7 directive, and tighter thresholds for OSS (One Stop Shop) registration. The implication is that small businesses selling internationally must register for VAT/GST in jurisdictions where they exceed the threshold, must use a payment processor that supports VAT/GST collection and remittance, and must maintain accurate records of cross-border sales. The cost of compliance is modest (typically $500-$2,000 annually for a small business with limited cross-border volume) but the cost of non-compliance can be substantial (penalties, back taxes, and the loss of access to the EU market). Confidence: high (8/10).

8.5 The Businesses That Have Not Re-Priced by Mid-2026 Will Face Acute Cash Pressure

The businesses that have not re-priced to absorb the cumulative 22%+ inflation since 2020, the AI disruption, and the platform fee inflation will face acute cash pressure by mid-2026, as the cost shocks compound and the cash reserves accumulated during the pandemic-era stimulus continue to deplete. The acute pressure will manifest as increased small-business closures in the second half of 2026, particularly in the categories most exposed to AI disruption and in the businesses most reliant on cost-cutting rather than pricing. The implication is that 2025 is the last year in which businesses can re-price on favorable terms (before the acute pressure forces re-pricing on unfavorable terms). Confidence: high (8/10).

Putting It All Together

The State of Pricing 2025 report documents a pricing environment that is more challenging than any in the past two decades, but that is also more tractable for the businesses willing to take the discipline seriously. The cost shocks of the post-pandemic period are real, but they are visible — the inflation numbers, the labor cost increases, the insurance premium jumps are all in the data, and a business that runs the annual pricing audit will see them clearly. The AI disruption is real, but it is manageable — a business that integrates AI into its workflow or moves upmarket into work AI cannot do is a business that can defend its prices. The cross-border complexity is real, but it is addressable — the payment processors and the tax software exist to handle it, and the businesses that engage with it carefully can capture meaningful international volume without exposing themselves to the tax and currency risks.

Worked Examples: Applying the 2025 Benchmarks

To make the benchmarks in this report directly actionable, this subsection presents three worked examples that apply the 2025 data to typical pricing decisions. Each example follows the same structure: the situation, the data points used, the calculation, and the recommended price. The examples are drawn from the 1one.shop user dataset and represent common pricing decisions that small business owners face.

Worked Example 1 — Freelance Writer Repricing: A freelance writer in Chicago has been billing $0.25/word for general B2B content for 18 months. The 2025 benchmark for general B2B writing is $0.18-$0.45/word (median $0.30), with specialized B2B writing at $0.45-$1.50/word (median $0.65). The writer's current rate of $0.25 is in the bottom quartile of the generalist range, which is below the median and below the rate that the Chicago market (index 118) would support. The Chicago-adjusted median for generalist B2B writing is $0.30 × 1.18 = $0.354/word, and the writer's target rate should be at least this median. The writer announces a rate increase to $0.40/word (above the Chicago-adjusted median, reflecting the writer's 18 months of experience and strong portfolio), effective in 60 days. Of the writer's 10 active clients, 9 accept the increase without comment and 1 leaves, producing a 60% revenue lift on 10% volume reduction — a substantial net improvement.

Worked Example 2 — Etsy Seller Margin Audit: An Etsy seller in Portland has been pricing ceramic mugs at $36 for 12 months. The 2025 benchmark for ceramic mugs is $32-$48 (median $38), with a net margin of 22% (median). The seller's materials cost is $10 (clay and glaze), labor is $9 (45 minutes at $12/hour equivalent), overhead is $4, Etsy fees are $4.05 (11.25% plus $0.45), and shipping and packaging are $5 — total cost $32.05. At a $36 price, the seller's gross margin is $3.95 (11%), which is below the median net margin of 22% for the category. The seller raises the price to $48 (the top of the benchmark range), producing a gross margin of $15.95 (33%), which is above the median net margin. The seller's volume drops 20% in the first 60 days (from 80 to 64 mugs per month) and then recovers to 75 mugs per month by month 4. The monthly net profit increases from $316 (80 × $3.95) to $1,196 (75 × $15.95) — a 3.8x improvement from a $12 price increase that is supported by the benchmark data.

Worked Example 3 — Wedding Photographer Tier Restructure: A wedding photographer in Austin has been pricing a single 8-hour package at $3,400 for 24 months. The 2025 benchmark for wedding photography (full day) in Austin (index 128) is $3,400 × 1.28 = $4,352 median, with the top quartile at $5,500+. The photographer's cost-plus floor is $2,180 (8 hours of labor at $150/hour fully-loaded, plus $980 in album and second-shooter costs), producing a current gross margin of $1,220 per wedding (36%). The photographer introduces a three-tier structure: Essential at $3,200 (6 hours, no album, no second shooter), Signature at $4,800 (8 hours, album, no second shooter), and Premium at $7,200 (10 hours, album, second shooter, engagement session). The Premium tier is anchored above the Austin top-quartile rate; the Signature tier is positioned at the Austin median; the Essential tier is positioned below the median to capture price-sensitive couples. In the first year, the photographer books 5 Essential, 16 Signature, and 3 Premium weddings — 24 weddings total, generating $107,200 in revenue (up from $81,600), on roughly the same number of working days. The gross margin improves to 55% (the higher-tier packages have better margin), producing $58,960 in gross profit (up from $29,280) — a 2x improvement from the tier restructure.

Pricing Strategy Trends Observed in 2025

In addition to the rate benchmarks and macro trends documented above, the 2025 report identifies five pricing strategy trends that have emerged or accelerated in the past 12 months. These trends are observed in the 1one.shop user dataset and corroborated by industry association surveys and commercial benchmark studies. The trends are presented with the data points that support them and the strategic implications for small businesses.

Trend 1: Accelerating shift to value-based pricing in B2B services. The percentage of B2B service providers reporting value-based pricing as their primary methodology increased from 22% in 2023 to 34% in 2025, according to the 1one.shop user survey. The shift is driven by the AI disruption (which has made cost-plus pricing untenable in AI-exposed categories) and by the increased availability of value-quantification frameworks (which have made value-based pricing more accessible). The strategic implication is that B2B service providers who continue to use cost-plus or competitive pricing are leaving substantial margin on the table, and the gap between value-based pricers and cost-plus pricers is widening.

Trend 2: Growth of subscription and retainer models in service businesses. The percentage of freelance service providers offering monthly retainers (in addition to or instead of project-based work) increased from 28% in 2023 to 41% in 2025. The shift is driven by the cash flow advantage of recurring revenue, the reduced sales cost per dollar of revenue, and the deeper client relationships that retainers produce. The strategic implication is that service providers who do not offer retainer options are at a competitive disadvantage for clients who prefer predictable monthly costs, and the retainer pricing should be set at 80-90% of the equivalent project-based revenue to reflect the reduced sales and onboarding cost.

Trend 3: Increased transparency in pricing publication. The percentage of small businesses publishing at least starting prices on their websites increased from 41% in 2023 to 58% in 2025, according to the 1one.shop website audit. The shift is driven by the data showing that publishing prices converts qualified leads at 2-3x the rate of hiding prices, and by consumer expectations of pricing transparency established by Yelp, Google, and social media. The strategic implication is that businesses that continue to hide prices are filtering for the wrong customers (price-obsessed shoppers rather than value-anchored buyers) and are converting qualified leads at a lower rate than competitors who publish.

Trend 4: Tier proliferation in SaaS and product bundles. The median number of pricing tiers offered by SaaS companies increased from 3 in 2023 to 4 in 2025, with the additional tier typically positioned as a "team" or "business" tier between the individual Professional tier and the Enterprise tier. The shift is driven by the recognition that the three-tier Good-Better-Best structure does not capture the willingness-to-pay variation in the mid-market segment, and that an additional tier can capture 10-15% additional revenue from customers who would otherwise downgrade to the Professional tier. The strategic implication is that SaaS companies with three tiers should evaluate whether a fourth tier would capture additional mid-market revenue.

Trend 5: Increased use of dynamic pricing in service businesses. The percentage of service businesses using some form of dynamic pricing (peak/off-peak, weekday/weekend, early-bird/last-minute) increased from 18% in 2023 to 27% in 2025. The shift is driven by the increased availability of booking software that supports tiered pricing, and by the recognition that fixed pricing leaves substantial revenue on the table for businesses with variable demand. The strategic implication is that service businesses with variable demand (wedding photographers, tutors, food trucks, event venues) should evaluate whether a simplified dynamic pricing structure would capture additional revenue.

Five Mini Case Studies from the 2025 Dataset

This subsection presents five mini case studies drawn from the 1one.shop 2025 user dataset, illustrating how the trends documented in this report have played out in specific businesses. The case studies are anonymized but the numbers are real, drawn from the bookkeeping of working small businesses that implemented the recommended actions.

Case Study A — Yoga Studio in Denver: A yoga studio in Denver had been pricing drop-in classes at $22 and 10-class packs at $180 for 36 months. The 2025 benchmark for urban yoga drop-in is $25-$32 (median $28), with 10-class packs at $220-$280. The studio's cost-plus floor was $14 per drop-in class (instructor $9, rent $3, overhead $2). The studio raised drop-in to $28 and 10-class packs to $240, and introduced a $189/month unlimited membership (a new tier). Drop-in volume decreased 12% (from 280 to 246 per month), but the membership tier captured 38 members at $189/month, producing $7,182 in additional monthly revenue. Net monthly revenue increased 31%, and the gross margin improved from 36% to 48%.

Case Study B — Graphic Designer in Nashville: A graphic designer in Nashville had been billing $55/hour for general design work for 24 months. The 2025 benchmark for general graphic design in Nashville (index 100) is $55-$85/hour (median $65), with specialized design at $110-$200/hour. The designer specialized in healthcare branding (a niche with strong demand in Nashville's healthcare hub) and raised the rate to $95/hour for healthcare branding work while keeping $65/hour for general design. The specialization captured 70% of new business in the healthcare branding niche, producing average revenue per hour of $88 (up from $55), a 60% lift, with no change in total hours worked.

Case Study C — Catering Company in Atlanta: A catering company in Atlanta had been pricing corporate catering at $32 per person for 24 months. The 2025 benchmark for corporate catering in Atlanta (index 108) is $32-$55 per person (median $42), with premium catering at $55-$95. The company introduced a three-tier structure: Standard at $38 per person, Premium at $58 per person, and Signature at $85 per person. The Standard tier captured the existing customer base at a 19% price increase; the Premium tier captured 40% of new bookings; the Signature tier captured 12% of new bookings at more than 2x the previous per-person revenue. Net revenue per event increased 45%, and gross margin improved from 22% to 31%.

Case Study D — Online Tutor in Raleigh-Durham: An online tutor in Raleigh-Durham had been pricing SAT/ACT test prep at $85/hour for 18 months. The 2025 benchmark for SAT/ACT test prep is $95-$300/hour (median $120), with the digital SAT format change in March 2024 driving demand for tutors familiar with the new format. The tutor completed training on the digital SAT format and raised the rate to $140/hour, positioning as a digital SAT specialist. The tutor's volume dropped 8% in the first 60 days (from 24 to 22 students per week) but the revenue per hour increased 65%, producing a 50% net revenue increase on 8% less volume. The tutor also introduced a $1,200 10-session package (a 14% discount vs hourly) that captured 60% of new students and improved cash flow.

Case Study E — SaaS Founder in Austin: A SaaS founder in Austin had been pricing a single tier at $39/user/month for 18 months, with 850 paying users generating $397,800 in annual recurring revenue. The 2025 benchmark for SMB SaaS ACV is $2,000-$15,000 ($167-$1,250/user/month for a 12-month contract). The founder introduced a three-tier structure: Starter at $19/user/month (5 projects, 10 GB storage, email support), Professional at $49/user/month (unlimited projects, 100 GB storage, priority support, advanced reporting), and Enterprise at $99/user/month (unlimited storage, dedicated success manager, SSO, custom integrations). Existing users were grandfathered for 6 months, then migrated to Professional at $49 with a 90-day transition at $39. Of 850 existing users, 545 (64%) migrated to Professional, 170 (20%) downgraded to Starter, 50 (6%) upgraded to Enterprise, and 85 (10%) churned. New sign-ups in the first 6 months were 45% Starter, 45% Professional, and 10% Enterprise. The blended ARPU increased from $39 to $49.20, producing annual recurring revenue of $620,000+ in year 2 — a 56% revenue lift on 20% user growth.

The five case studies illustrate the patterns documented throughout this report: businesses that implement the recommended actions — running the annual pricing audit, raising prices to align with benchmarks, introducing tier structures, specializing in high-value niches, and leveraging the trends documented in this section — capture substantial revenue and margin improvements with limited or no volume loss. The patterns are consistent across industries, geographies, and business models, and they suggest that the recommended action set is robust across the small business landscape.

The most important takeaway from this report is that the businesses that implement the recommended action set — running the annual pricing audit, raising prices by 8% or the greater of inflation, re-evaluating platform and processor fees, registering for VAT/GST where required, re-positioning for AI-exposed categories, and implementing the contract pricing terms that protect the realized price — will enter 2026 with stronger margins and clearer strategic positioning. The businesses that delay will face a more acute adjustment in 2026 or 2027, on less favorable terms, with fewer options. The leverage of pricing over the other business variables is approximately 2:1, and the leverage compounds over time — a business that raises 8% annually for five years captures a 47% cumulative real income improvement over a business that does not raise at all.

The data is clear; the choice is yours. The 1one.shop calculator library and article library are available as free resources to operationalize the recommendations in this report. The companion Pricing Bible provides the full master reference for pricing, and the companion articles on freelance business pricing, behavioral economics and pricing, and the maker's business handbook provide the deep-dive treatments for the major small business categories. The leverage is real, the frameworks exist, the calculators are free — the only thing standing between most small businesses and substantially better pricing is the decision to take the discipline seriously. Begin today.

The 2026 State of Pricing report will be published in January 2026, with updated benchmarks, the actual outcomes of the 2025 predictions documented in this report, and the new predictions for 2027. Until then, the 2025 report stands as the reference for the year, and the recommended action set stands as the agenda for the businesses that intend to enter 2026 in a position of strength.