The Underpricing Epidemic
Studies consistently show most small businesses are undercharging for their products and services. Underpricing attracts price-sensitive customers, creates cash flow pressure, and prevents investment in quality improvements.
Value-Based Pricing vs Cost-Plus
Cost-plus pricing is the most common approach and the worst for profitability. Value-based pricing starts from the customer's perspective: what is the outcome worth to them?
Testing Your Prices
Run A/B tests with different price points. Raise your prices 20% and measure the impact on close rate. If close rate drops by less than 20%, you're more profitable at the higher price.
