Still Working Hard but Barely Profiting? Your Prices Are the Problem
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.
What Should You Do Instead?
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.
👉 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:
👉 A web design agency shouldn’t charge for hours spent – they should charge based on the increase in conversions, brand credibility, and lead generation the site will create. 👉A personal trainer shouldn’t charge by the hour – they should create result-driven packages, like “Lose 10kg in 12 Weeks. 👉 A marketing consultant shouldn’t price based on deliverables – but on the business growth, time saved, and clarity they provide.
👉 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
👉 Redefine your offer around outcomes. Don’t sell time. Sell transformation.
👉 Introduce tiered pricing. Create Bronze, Silver, and Gold packages to give clients options and increase your average transaction value.
👉 Test higher prices with new clients. You don’t have to change everything at once. Start with your next quote and see the response.
👉 Use social proof. Testimonials, results, before/after data – all help justify your price point.
👉 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:
• Work with better clients • Create financial headroom • Build a business that lasts
Pricing is one of the biggest levers in your business – and it’s entirely under your control. Make it count.
