Why pricing matters

Price affects how many customers you attract, how much profit you make and how people see your brand. Many new business owners set prices too low, hoping to win customers, and end up working hard for very little.

A good price does three jobs:

• It covers all your costs, including your own time.
• It leaves a profit, so the business can grow and handle surprises.
• It makes sense to customers, compared with the value they get and their other options.