When was the last time you looked at your pricing? Not just glanced but really reviewed it?

Step 4 of your Plan, Profit, Prosper process is all about understanding the numbers behind what you charge and whether they still stack up.

Because here’s the truth: prices that worked last year might be quietly hurting you today.

Costs rise. Clients expect more. Your services evolve. If your pricing doesn’t keep up, your margins will slip without you noticing.

Step 4 of our Plan, Profit, Prosper Advent series is about valuing what you do, and making sure your pricing still supports your business.

Why Pricing Reviews Matter Now More Than Ever

Reviewing your pricing and profit margins is one of the most powerful things you can do to stay profitable, sustainable, and in control.

Regular price reviews help you:

• Spot low-margin services before they become a drain
• Make confident decisions about where to invest or cut back
• Plan growth with accurate, up-to-date numbers

This is about making sure the work you’re doing is worth it, and if it’s not, knowing what needs to change.

1. Know Your True Hourly Cost

Start here. Work out what it really costs to deliver your service, including:

• Overheads
• Salaries, pensions and National Insurance
• Software and tools
• Insurance, rent, admin and everything else that keeps the wheels turning

Then adjust for utilisation. If 80% of your time is billable, divide your costs by 0.8 to reflect that. This gives you the minimum hourly rate you need just to break even.

Understanding this number prevents undercharging and gives you solid ground for pricing decisions.

2. Review Profitability by Service

Not all your services are equally profitable. Some will carry your business. Others might be quietly draining it.

Look at each product or service and calculate its actual margin. Which ones deliver the most value for the least effort? Which feel like hard work for little return?

This exercise gives you a clear picture of what to focus on and what to improve, adjust, or potentially retire.

3. Check Profitability by Client

Even a profitable service can become unprofitable when delivered to the wrong client.

Review how long each job really takes. Compare it to the fee you’re charging. Is it still worth it? Scope creep, write-offs, and “favour” work can slowly eat away at your margins.

You don’t need to be the cheapest. Clients are happy to pay more when the value is clear and the service is strong.

Aim for a target margin, say 60% or more, and highlight any clients that are falling short.

4. Plan Price Increases Proactively

Most businesses wait too long to raise prices, then panic when margins get tight.

Small annual increases of 6–10% help you stay ahead of inflation, rising costs, and growing complexity. Larger uplifts may be needed for clients who are well below your target margin or where the scope has changed significantly.

Handled well, most clients understand and accept price increases. It’s about communication and timing.

5. Forecast the Impact Before You Hit Send

Before you make changes, forecast the effect. What will this do to your revenue? To your profit? To your team capacity?

Pricing changes should feel empowering, not scary. When you understand the financial impact, you can make decisions with confidence.

Whether you're planning to grow, hire, or simply create more breathing space, your pricing is the lever that gives you control.

Get the Business You Want

Your pricing is one of your most powerful business tools. But only if it reflects your value, your costs, and your goals.

If it’s been a while since your last review then now’s the time.

Download the Plan, Profit, Prosper planner and use Step 4 to work through your pricing with clarity.

Need help running the numbers, reviewing margins, or communicating a price increase?
We’ll guide you through it.

Start today: Download the planner and take Step 4 now