What are common pricing mistakes small businesses make?

Underpricing because you started cheap

Many businesses set low initial prices to attract customers, then never raise them. Your costs and experience grow; your prices should too. Review pricing annually at minimum. Loyal customers usually accept small increases.

Treating all customers the same

Different customer types have different willingness to pay. Large orders, long-term contracts, or easy-to-serve customers can support lower prices. High-maintenance or one-off customers should cost more. Don't average these together.

Ignoring what your costs actually are

Some business owners focus only on revenue and never track true unit costs. Hidden expenses—returns, customer service, admin time—eat into profit. Calculate what each customer genuinely costs you to serve, including all labor and materials.