Why Charging What You’re Worth is Key to Business Success

If you supply a quality product or service, don't be afraid to hold your margin and educate your customers on why you're better and what the favourable outcomes are for them. Too many small businesses get caught in a race to the bottom with their pricing, ultimately paying the price by closing their doors. Most customers will tell you that they're happy to pay more for a superior product or service. Cheap is not sustainable. You got into business to improve your personal and financial situation, so don't undervalue what you do.

If you have an ongoing relationship with customers, a phone call or a catch-up might be the best way to discuss any concerns. If you operate a retail or food business, a small price increase often goes unnoticed. The point is that you need to charge a fair and reasonable price for your product or service. Review your cost of goods regularly to ensure that your current prices are in line with these.

One of my favourite sayings is: "Turnover is vanity, and profit is sanity."