Roy, yes lift the motor one hole to start with, you will find also the trim on the motor will work a bit better, the prop you have on ATM is a Laser ll 13. 1/4 x 20 way to big for my liking, go to your local merc dealer, tell them whats going on and that you would like to trade your prop in, tell them all they need to know about your boat, rpm and how much gear you carry, they will help you out.............good luck with it
Daz
PS: whats your WOT speed? 40+ MPH?