Price the work so the margin is real.
Most small-business prices are set by looking at a competitor, subtracting a little, and hoping. Then the year ends and the business was busy, the owner was exhausted, and there is no money left. Underpricing is the most common and least visible way a small business fails: every sale looks like a win, and the losses hide in the hours that were never counted and the costs that were never allocated.
Pricing is a decision you can make with numbers. Know your true cost per unit or per hour, including your own time and the overhead that has to be covered before there is any profit. Decide the margin the business needs, not the margin you feel comfortable asking for. Understand what your customers are actually comparing you to. Then set the price, raise it when the numbers say to, and stop apologising for it.
These guides are for owners, makers, freelancers, and service businesses who need to price products, jobs, or hours. Costing a product properly, pricing services and estimates, when and how to raise prices on existing customers, discounts and the damage they do, and how to talk about price without flinching. Worksheets and calculators included.
Sound familiar?
- You are busy all year and there is no profit at the end of it.
- You set your prices by looking at competitors and guessing lower.
- You have not raised prices in three years and you are afraid of what customers will say.
- You do not actually know what one unit, one job, or one hour costs you.
- Customers ask for discounts and you give them because you do not have a reason not to.
- You quote a job, it runs long, and you eat the difference every time.
Pricing
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How do I work out what my product or service actually costs?
Add up direct costs (materials, packaging, subcontractors), the labour hours at a real rate including your own, and a fair share of overhead (rent, software, insurance, fees). Divide by units or hours. Most owners are surprised by the number. The costing worksheets in these guides walk you through it line by line.
How do I raise prices without losing customers?
Give notice, explain briefly and without apology, raise for new customers first if it helps, and expect to lose a few of the least profitable ones. A well-run price increase usually increases profit even after some attrition. The guides include the timing, the notice letter, and the conversation for the customer who pushes back.
Should I offer discounts?
Only deliberately. A 10% discount on a 30% margin gives away a third of your profit. Discount for a reason you can name (volume, prepayment, a slow season) and with a rule you apply consistently. The guides cover discount policy and the alternatives that keep the price intact.
