Are You Charging Enough? How to Know if Your Pricing Strategy Actually Works
Pricing isn’t just about staying competitive; it’s about staying profitable.
If your rates don’t reflect your true costs, your value, and your goals, your business could be quietly bleeding cash.
We see it all the time: smart, hardworking business owners unintentionally underpricing their offers. It’s not because they don’t care, but because pricing often feels more like a gut decision than a clear formula.
Let’s fix that.
A quick pricing gut-check
Here are 3 key questions to help you evaluate your pricing strategy:
Are you capturing your true COGS (Cost of Goods Sold)?
That includes materials, packaging, labor, software, tools—everything it takes to deliver your product or service. Missing even a small item here can eat away at your profits.What’s your gross margin telling you?
Your gross margin (revenue minus COGS) reveals how much is left to cover your overhead, and still leave space for profit. If it’s too tight, your pricing might not be pulling its weight.Are your prices covering your operating expenses?
Salaries, rent, software subscriptions, marketing costs—it all adds up. A financially healthy business ensures pricing can support all this and sustain profit.
A better way to set prices
Using tools like Profit First, you can reverse-engineer your pricing based on your desired margins. Instead of pricing from a place of fear or comparison, you’re making decisions based on:
Real numbers
Real goals
Real profit
No more guessing. No more pricing just to “stay affordable.”
You can be both profitable and fair.
Ready to rethink your pricing?
If you haven’t revisited your pricing in over a year, or you’re not sure your current rates are covering your true costs, it’s time to get clarity.
Our expert workshop, “Are My Prices Right?”, breaks down how to assess your current pricing, avoid common pitfalls, and start pricing with intention.
Even a small adjustment could significantly boost your margins and your peace of mind.