How Small Businesses Can Thrive, Not Just Survive

For many small business owners, setting the right price for products or services feels like a guessing game. Charge too little, and you risk working for nothing. Charge too much, and you might scare away customers. But there’s more to pricing than simply covering costs or matching the competition. Smart price setting, grounded in financial planning, is the real secret to not just surviving, but thriving.

Why Pricing Matters

Price is more than just a number on a tag. It’s a reflection of your value, your market position, and your business goals. The right price can help you:

• Cover all your costs (not just the obvious ones)

• Make a healthy profit

• Fund future growth

• Attract the right customers

• Build a sustainable business

But how do you find that “right” price?

Step 1: Know Your True Costs

Start with the basics: what does it really cost to deliver your product or service? This means more than just materials or direct labour. Include:

• Overheads (rent, utilities, insurance)

• Marketing and sales expenses

• Admin and tech costs

• Your own salary (don’t forget this!)

• Taxes and fees

A clear, honest look at your numbers is the foundation of good pricing.

Step 2: Understand Your Market

Research what your competitors charge, but don’t just copy them. Consider:

• What makes you different or better?

• What extra value do you offer?

• Who is your ideal customer, and what are they willing to pay?

If you offer a premium service, your price should reflect that.

Step 3: Factor in Your Financial Goals

Survival isn’t enough. Set prices that help you achieve your business and personal goals. Ask yourself:

• How much profit do you want to make each month?

• What investments do you need for growth?

• How much do you want to pay yourself?

Work backwards: set a profit target, then calculate the sales needed and the price required to reach it.

Step 4: Test and Review Regularly

Pricing isn’t “set and forget.” Monitor your results:

• Are you reaching your sales and profit targets?

• Are customers happy with the value they get?

• Are costs changing?

Be ready to adjust. Small changes can make a big difference to your bottom line.

Step 5: Communicate Value, Not Just Price

Customers rarely buy on price alone. They buy because they believe your product or service is worth it. Make sure your marketing and sales messages focus on the value you deliver, not just the cost.

Five Key Takeaways

Know your real costs: Include everything, not just the obvious expenses.

Set prices with intent: Align your pricing with your profit goals and business strategy.

Understand your market: Research competitors, but focus on your unique value.

Review and adjust: Regularly check your pricing against your goals and market changes.

Sell your value: Make sure customers understand what makes you worth the price.

We Should Talk…

You’re not on this journey of creating the business you dream of alone! We want to be with you each step of the way. Of course the first and most important step is talking so we can find out how best to help you…