If you have not reviewed your prices recently, you are not alone. For many business owners, pricing is something that gets set and only revisited when the need arises. But in the current climate, that approach could be eroding your profitability without you even realising it.
Customers have been feeling the pressure of the cost of living, and 2026 is no different. They are thinking more carefully about where they spend their money, and some will be making difficult choices about which products and services they can justify. That shift in behaviour has a direct impact on businesses like yours, and it makes getting your pricing right more important than ever.
The dual challenge facing business owners right now
Rising costs on one side, price-sensitive customers on the other. It is a difficult position to be in, and one that many SME owners are trying to navigate without a clear strategy behind their pricing decisions.
The temptation in a tough market is to hold prices down to stay competitive. But if your costs have increased and your prices have not kept pace, your margins will be shrinking. Over time, that is not sustainable. If this sounds like your business, please know that this is not an uncommon problem.
Remember that the goal is not simply to attract customers. It is to attract the right customers at a price that keeps your business profitable and healthy.
Pricing should not be guesswork
Many businesses set their prices in these ways:
- On what competitors charge
- On what feels reasonable
- On what they have always charged
As reference points, these methods are valuable, but they are not a strategy.
Confident pricing comes from understanding your numbers. That means knowing your costs in full, understanding your profit margins for different products or services, and having a clear view of what the business needs to generate to be sustainable and to grow. Our blog “Does your business need a financial reality check?” has more in-depth advice on this topic.
When you have that clarity, pricing decisions become far less stressful. You are no longer guessing. You are working from evidence. That’s what we want to see more business owners doing.
The right pricing strategy for your business
There is no single pricing approach that works for every business but here are the common strategies:
- Value-based pricing, where the price reflects the outcome or transformation the customer receives rather than the time or materials involved
- Cost-plus pricing, where the price covers all costs involved in the product with a margin added on top to ensure a profit
- Some use tiered pricing to serve different customer segments without compromising on overall margin.
Understanding which approach suits your business, your market and your customers is where the right advice makes a real difference.
Is your accountant helping you with pricing?
Does your accountant talk to you about pricing regularly? Do they help you understand whether your margins are healthy, or flag when your profitability is starting to drift?
At Accounting Clarkes, pricing strategy is something Gillian and Chris have worked on throughout their careers and across a wide range of businesses. They understand how to help business owners identify the right pricing approach, review it regularly and make decisions that protect profitability without losing sight of what customers value.
If pricing is something you have been managing on instinct rather than insight, it might be time to have a different kind of conversation with your accountant.
Call 01252 612484 or email gillian@accountingclarkes.co.uk to book a discovery call.
