Small Business Pricing: The Ultimate Guide to Pricing Your Services

img

Pricing isn’t just a number on a price tag— it underpins your whole business strategy. The right pricing can totally transform your small business. But getting it wrong can leave you scrambling. In this blog, we’re making life easier and showing you exactly how you can nail your small business pricing 🚀

The High-Stakes Game of Small Business Pricing

Pricing isn’t just a numbers game. It’s a complex psychology of value, perception, and strategic positioning.

Getting your pricing wrong can leave your work devalued and priced out of the market. So how can you avoid getting your pricing wrong?

Pricing Pitfalls to Avoid

Undervaluing Your Expertise

If you’re undervaluing your product or services, you’re also undervaluing your expertise.

Your price reflects your knowledge and experience. So get clear on how much your expertise is truly worth!

Remember: Regardless of your business type, you’re not just selling a product, you’re selling a solution. So how much is that solution worth to your audience? This will help you value your expertise and the value you bring to your audience, helping you avoid undervaluing your business 😊

Copying your competitors’ pricing

Don’t get bogged down in the weeds copying your competitors. Market rates can be a great guide, but they’re not the only way to determine your pricing.

Focus on your unique selling point (USP) and what makes you different to your competitors. You can then use this to inform your pricing model.

For example, if your business solves problems for your customer more efficiently than competitors then charge more! You can be confident in your USP and the value that you’re bringing your audience.

Ignoring Your True Business Costs

Costs are one thing you can’t bury your head in the sand about.

To get your pricing right you must understand your costs and ensure all costs are factored into your pricing.

Top Tip: Pay yourself first. If your business can’t sustain your living costs, it’s an uphill battle. So make things easy by ensuring your costs are covered by your pricing!

Small business pricing is essential to get right - here's how you can nail your pricing!

How to Nail Your Pricing

Step 1: Cost Calculation

  • Create a spreadsheet tracking EVERY expense
  • Calculate your hourly rate – defining your dream annual income and work backwards from there
  • If you have a service-based business, make sure you factor in additional costs like admin time, marketing etc.

Step 2: Focus On Value

  • Get clear on your customer’s problems – know your customer so well that you know their problem before they do!
  • Price up what their challenge is costing them
  • Show your audience how much money your solution will save them (this is value-based pricing in a nutshell!)

If you’re a service-based business this could be: ‘My business coaching saves founders $5000 a year’

If you’re a product-based business this could: ‘Our anti-aging serum replaces 10 different oils, creams and fad products you’re already using – keeping your bathroom cabinet clear and saving you hundreds of pounds too!’

Step 3: Leverage Buyer Psychology

  • Create limited-time offers – you don’t need to drop your prices, you just need to be clever about your offer positioning!
  • Try using waitlists to create anticipation about your business, without touching your pricing
  • Show value beyond the price tag
  • Leverage testimonials to build buyer trust in your pricing and value

Conclusion

Pricing doesn’t have to be hard! Using the simple strategies above, you can get clear on the value you bring to your audience, and define a price that works for you 💪

If you’d like more support with your pricing, why not chat to one of our Digital Boost mentors? They’ll give you tailored support to help you find a pricing strategy that works for your unique business model 🎉

Want to learn more about these pricing strategies? Watch our Small Business Pricing Replay here 👇

back to feed