Why Pricing Matters More Than You Think
Most small business owners start with this thought:
“I’ll just charge what others are charging.”
Or worse — “As long as I cover my costs, I’m doing okay.”
But here’s the truth: survival pricing keeps your business stuck.
Strategic pricing builds profit, sustainability, and growth.
In this blog, we’ll show you how to shift from “just enough” to pricing for profit — and why it could be the most important financial move you make this year.
The Problem With ‘Survival’ Pricing
Survival pricing is when you set your prices based only on:
What your competitors charge
What feels “fair”
What your costs are (but only just!)
And while that might keep the lights on, it:
Leaves no room for growth
Doesn’t account for your time, risk, or expertise
Often leads to burnout because you’re overworking for too little return
What It Means to Price for Profit
Pricing for profit means setting your prices with:
✅ All costs accounted for
✅ Time and effort valued
✅ A healthy profit margin baked in
✅ A strategy that reflects the value you deliver
It’s about building a sustainable, scalable business — not just a job that pays the bills.
The 4-Step Pricing for Profit Method
1. Know Your Costs (All of Them)
That includes:
Materials/supplies
Subscriptions & tools
Your time (YES, your time!)
Tax obligations
Admin & indirect costs
2. Set a Profit Margin Target
Once you know your costs, set a profit margin — not as a bonus, but as a non-negotiable.
Example: If your total cost is $100, and you want a 30% margin, your price should be $143 (not $100 or $105).
3. Factor in Value, Not Just Time
Your clients aren’t just paying for hours — they’re paying for:
Your experience
The results you deliver
The problems you solve
Pricing should reflect the impact you create.
4. Review & Refine Regularly
Your costs change. Your skill set grows. Your pricing should evolve too.
Do a pricing review every 6–12 months to stay profitable.
Common Pricing Myths (That Hold You Back)
🚫 “I’ll lose clients if I raise my prices.”
✅ You might lose the wrong ones — and attract better-fit clients who value you.
🚫 “I’m too new to charge more.”
✅ If you’re delivering results, your pricing should reflect that.
🚫 “People won’t pay that much in my industry.”
✅ People pay for what they value. It’s your job to communicate that value.
How EMPIRE Can Help You Price for Profit
At EMPIRE Accounting, we help you:
Understand your margins
Track your real-time profitability
Run pricing scenarios before you make a change
Build a strategy that works for your business model
Because numbers aren’t just for the tax office — they’re tools for growth.
Ready to price like a business owner (not just a hustler)?
Book a free strategy call and let’s make sure your pricing supports your vision.
