Growth
Pricing your services: starting from margin, not from guesswork
Most small businesses price by looking sideways at competitors. Pricing from your own numbers is more reliable and usually more profitable.
28 April 2026 · 5 min read
Pricing set by glancing at a competitor's website assumes their costs, capacity and positioning are yours. They almost certainly are not. Better pricing starts inside your own accounts.
Know your true cost to deliver
Include the hours actually spent, not the hours quoted. Include revisions, admin, software, and the time you spend winning the work. When founders do this exercise honestly, some of their most popular services turn out to be their least profitable.
Set the margin deliberately
Decide what gross margin the business needs to cover overheads, pay you properly and leave something for investment. Price back from that figure. If the resulting price feels unsellable, the answer is usually to change the offer or the client, not to quietly accept a loss.
Review on a schedule
- Look at pricing at least annually, and after any significant cost increase.
- Track margin by service line, not just total revenue.
- Test increases with new clients before applying them across the board.
- Give existing clients notice and a reason; most stay.
A one or two percent price change often moves profit more than a comparable change in volume, and it costs nothing to deliver. It is worth the analysis.
This article is general information, not advice for your specific circumstances. Check current requirements before acting. Our team can help you understand how the topic relates to your business and agree any support you need.