How to Price Your Services Based on Your Finances
Ah, pricing. The eternal headache for every small business owner, side hustler, and “I swear I’m not winging it” entrepreneur. One minute you’re thinking, I’m worth a million bucks! and the next you’re Googling, Can I charge more than $5 for this service without scaring people off?
If you’ve ever wondered how to set prices that actually make you money (and not just “cover your coffee habit”), then you, my friend, are in the right place. Let’s talk about pricing services based on business finances, without making your brain melt.
🧐 Why Bother Pricing Based on Finances?
Here’s the thing: if you don’t base your pricing on actual numbers, you’re basically throwing darts blindfolded. And spoiler alert: that’s how businesses end up broke by the end of the quarter.
Pricing based on your business finances helps you:
✅ Cover your costs (radical, I know)
✅ Pay yourself a real wage (because exposure doesn’t pay the bills)
✅ Plan for taxes, growth, and the occasional “treat yourself” moment
✅ Stop guessing and start growing
💡 The 5-Step Guide to Pricing Your Services Like a Pro
1️⃣ Know Your Costs (Yes, All of Them)
Start with the basics:
How much does it really cost you to deliver your service?
Are you including software, tools, subscriptions, and that “quick” Canva design you spent four hours on?
Don’t forget your time! If you’re working 12-hour days for pennies, we need to talk.
2️⃣ Set a Profit Goal (Because We’re Not a Charity)
Once you know your costs, add a profit margin. Yes, add. Profit is not optional.
Here’s a simple formula:
Cost of Service + Desired Profit = Price
Want a 20% profit margin? Cool. Charge 1.2 times your costs. Want to feel like a boss? Aim for 30%.
3️⃣ Look at the Market (But Don’t Obsess Over It)
Yes, it’s smart to see what others are charging. But don’t just copy your competitor’s prices because they look confident - chances are, they’re making the same mistakes.
Research to get a range, but price based on your actual business costs and goals.
4️⃣ Test It—Then Tweak It
Let’s be honest, pricing is a bit of trial and error. Set your price, see how the market responds, and adjust.
If clients run away screaming, maybe you’re too high (or you need to better explain your value). If they’re snapping up your services too easily, you might be leaving money on the table.
5️⃣ Review Regularly (Like, Every Quarter)
Your pricing isn’t set in stone, review it regularly! Check your financial reports, compare your profit margins, and adjust as your business grows.
If costs go up, guess what? So should your prices.
😂 Real Talk: Common Pricing Mistakes
Let’s take a moment to laugh (and cry) at some all-too-common pricing blunders:
❌ Charging “friend rates” for everyone (this is a business, not a charity)
❌ Forgetting about taxes, so that $500 invoice is really $400 after Uncle Sam takes his cut
❌ Pricing based on what you think clients will pay instead of what you need to earn
❌ Undercharging out of fear of rejection (newsflash: the right clients won’t flinch)
🏁 Final Thoughts
Pricing your services based on business finances isn’t just about making more money - it’s about making sure your business survives and thrives.
So here’s your action plan:
1️⃣ Calculate your costs
2️⃣ Add your profit margin
3️⃣ Review the market (briefly)
4️⃣ Test, tweak, repeat
5️⃣ Own your value, because you’re worth every penny
👉 For more finance tips that make sense (and maybe make you laugh a little), subscribe to Tea on the Ledger. We’ll send practical advice, strategies, and reminders that you can charge your worth - straight to your inbox.
Let’s make that money! 💰💪
