Common Pricing Mistakes That Small Business Owners Make
Pricing can feel tricky. Too high, and you risk losing clients. Too low, and you’re working harder for less profit. Many business owners in Edmonton and across Alberta struggle with this balance—and often, it’s not clear where the problem lies.
If your profits aren’t where you want them to be, pricing could be one of the hidden culprits.
Common pricing mistakes
Here are a few mistakes I see most often:
- Undercharging for your value – You may be providing premium services but pricing like a budget option.
- Discounting too often – Giving frequent discounts can train clients to expect lower rates and eat into your profits.
- Not factoring in all costs – Labor, overhead, materials, and hidden expenses all need to be accounted for.
- Comparing yourself to others – Pricing based solely on competitors can undervalue your unique skills and offerings.
The challenge is often that business owners aren’t sure which pricing mistake is hurting them the most—or if multiple issues are at play.
How to start fixing it
- Know your numbers
Understand your costs, desired profit margins, and the revenue needed to sustain and grow your business. - Value your expertise
Clients pay for results, not just hours worked. Make sure your pricing reflects the outcomes you deliver. - Test and adjust strategically
You don’t have to overhaul your pricing overnight. Try small adjustments and track the impact on revenue and client behavior. - Communicate value clearly
Help clients understand why your pricing makes sense and what results they can expect. - Focus on the right clients
Serving clients who appreciate your value and pay on time reduces stress and improves profitability.
Even small changes to pricing can have a big impact on your bottom line—and on how you feel running your business.
Next steps
It’s easy to second-guess pricing, and even harder to know which changes will make the biggest difference. Sometimes it takes an outside perspective to see where pricing might be holding you back, and how to create a plan to increase profitability without losing clients.
If you want clarity on your pricing strategy and which adjustments could have the biggest impact, book a free discovery call, and we’ll walk through your business together.