

If your business is offering a great service but profits are still tight, it might not be your service that’s the problem—it’s your pricing.
Far too often, businesses price based on what others are charging, aiming to stay competitive by going slightly cheaper or offering a bit more. But here’s the problem: most of your competitors are undercharging too. Basing your pricing on theirs only leads to the same outcome—thin margins and long hours with little reward.
What Should You Do Instead?
Start by pricing on value, not comparison. What is the result you’re delivering for your client? What’s that result worth to them?
For example:
Know Your Margins
A simple rule to follow: aim for 80% gross margins on services. That means if you charge £1,000, your all-in delivery costs (staff time, software, subcontractors, etc.) should be under £200.
Why? Because your business doesn’t just need to deliver. It needs to pay you, your team, your marketing, and have enough left over to grow.
If you’re running on 40% or 50% margins, and you’ve got overheads to cover, your actual profit can be shockingly low. When you push for 80%+ margins, you give your business breathing room and future flexibility.
How to Move Towards Value-Based Pricing
Pricing Isn’t Just a Number – It’s a Strategy
Smart pricing is one of the fastest ways to unlock cash without working more. It’s not about gouging – it’s about charging appropriately for the value you create.
When you price well, you:
Pricing is one of the biggest levers in your business – and it’s entirely under your control. Make it count.
As promised, value in under a minute.
Price smarter, grow stronger,
— HM Consultancy