Let’s talk about pricing: the thing that keeps so many solopreneurs stuck, second-guessing, and severely undercharging. If you’ve ever stared at your price list thinking, “Is this too much? Too little? Will anyone even pay this?” you’re in the right place. I want to help you to get away from pricing by guesswork by understanding how to price for profit
Here’s the truth: your pricing isn’t just about what the market will bear or what your competitors are doing. It’s a tool. A strategy. And when used properly, it can help you really build the business (and life) you want.
I want to help you cut through the confusion and show you how to price for profit without panic, guesswork, or emotion getting in the way.
First Things First: Know What You’re Pricing
Before we get into strategy, we need to get clear on what you’re actually pricing because pricing products and services can work differently.
If you’re a service provider (coach, designer, VA, consultant …) you’re probably trading time for money and you only have so much time. So you need to:
- Know how many hours/days you can (and want to) work
- Set a rate that reflects your expertise and your financial goals
- Account for the fact that not every hour is billable (admin, prep, marketing, etc.)
If you’re a product-based business (maker, artisan, online shop …):
- You’ve got materials, packaging, shipping, and time to make each item
- You need to factor in all costs (including hidden ones like marketing or storage)
- You’ll likely need volume so your pricing must support your cash flow
Step 1: Work Backwards from What You Need
Let’s stop pulling numbers out of thin air, shall we?
Whether you sell hours or handmade items, you need to know:
- What you want to earn (hello salary!)
- What your business costs to run
- What that means in terms of how many things you need to sell
This is where a Monthly Money Map comes in handy. Here’s a quick example:
Personal Costs: £2000
Business Costs: £1500
Total: £3500
Average sale price: £100
You need 35 sales to break even
That’s your minimum target. Now you can build your pricing and marketing plans with purpose.
CHECK THIS OUT: Pricing with Confidence: Charge What You’re Really Worth
Step 2: Understand the Different Pricing Strategies
Here’s the part most solopreneurs and freelancers miss: there’s more than one way to price for profit and the strategy you choose affects how you sell, market, and grow your business.
Here’s a few pricing strategies that could work for you:
Cost-Plus Pricing: Add up all your costs, then add a fixed mark-up (a standard percentage you put on top/mark-up each product or service) . Simple, but don’t forget to include your time and less-visible costs (marketing, systems, etc.).
Value-Based Pricing: Price based on the perceived value to your customer not just what it costs you. This works brilliantly for consultants, coaches, and creatives.
Competitive Pricing: Look at what others charge and align with that but beware the race to the bottom. Your pricing should reflect your business, not someone else’s.
Bundle Pricing: Great for product makers or service providers with packages. Group things together to increase perceived value and boost average spend.
Premium Pricing: Want to be seen as high-end? Price like it. But remember: your whole brand experience needs to support that perception.
Promotional Pricing: Useful now and then, like seasonal offers or early-bird rates, but not a long-term strategy. Don’t train your customers to wait for discounts (this is definitely the DFS model!).
Pro Tip: Mix and Match! You might use value-based pricing for services but add bundle pricing for workshops or digital downloads.
Step 3: Think in Terms of Cash Flow, Not Just Price Tags
Here’s the bit that turns pricing into profit: understanding your cash flow.
You could be ‘busy’ and still not be earning enough if:
- Your prices are too low
- Your margins are thin
- You’re not making enough sales to hit your break-even point
That’s why your pricing strategy needs to connect with your bigger business goals. You’re not just setting prices you’re building a business model that works for you.
CHECK THIS OUT: Turnover: Setting Your Prices for Profit Not Just Survival
Final Thought: There’s No One ‘Right’ Price
There’s only what works for you, your business, and your customers.
So don’t be afraid to test, tweak, and evolve. The best pricing strategy is one that reflects your value, supports your goals, and gives your business room to grow.
Ready to get your pricing sorted?
Let’s take the emotion out of the equation and make a plan that works. Book a free Let’s Talk conversation and let’s get your pricing working for you, not against you