Why increasing your prices isn’t about charging more – it’s about protecting your business.

When was the last time you reviewed your pricing?

For many business owners, pricing is one of the hardest decisions to make. There’s often a fear that increasing prices will drive customers away, so prices stay the same year after year while the cost of running the business continues to rise.

The reality is that wages, superannuation, insurance, rent, utilities and supplier costs have all increased significantly over recent years. If your prices haven’t kept pace, your profit margins may be shrinking without you even realising it.

The beginning of a new financial year is the ideal time to review your pricing and ensure your business is charging enough to remain profitable.

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Why pricing matters

Many business owners focus on increasing sales when profits are under pressure.

Often, the biggest opportunity isn’t finding more customers – it’s ensuring you’re charging the right price for the work you’re already doing.

Even a modest increase in pricing can have a significant impact on profitability without increasing your workload.

A well-planned pricing review can help you:

• Improve profitability
• Strengthen cash flow
• Cover rising operating costs
• Pay yourself appropriately
• Invest back into your business
• Build long-term financial sustainability

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Are you charging enough?

Some common warning signs include:

• You seem busy but there’s never much cash left in the bank.
• You’re constantly worried about cash flow.
• Your profit hasn’t increased despite growing sales.
• Rising wages and supplier costs are eating into your margins.
• You haven’t reviewed your prices in more than 12 months.

If any of these sound familiar, it’s probably time to review your pricing strategy.

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It’s not just about increasing prices

A pricing review isn’t simply about choosing a higher number.

We look at the complete picture, including:

Labour costs

Are your charge-out rates covering wages, superannuation, leave entitlements and training time?

Business overheads

Do your prices cover rent, insurance, software subscriptions, vehicles, equipment and administration costs?

Productivity

How many productive hours does each team member actually generate?

Many businesses assume staff are productive for every hour they’re paid. In reality, annual leave, public holidays, sick leave, training and administration all reduce billable time.

Profit

Most importantly… are your prices generating the level of profit you actually want?

Profit shouldn’t be whatever happens to be left over at the end of the year.

It should be planned.

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How we calculate your charge-out rates

At Intrinsic Accounting, we don’t guess. We calculate charge-out rates based on your business’s unique circumstances.

Depending on your business, we’ll consider factors such as:

• Team structure
• Employment costs
• Annual leave and public holidays
• Training and non-billable time
• Business overheads
• External purchases
• Desired profit margin
• Productivity targets

From there, we calculate charge-out rates that cover your costs while helping you achieve your financial goals.

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The benefits go beyond pricing

A pricing review often identifies other opportunities to improve profitability, including:

• Reducing unnecessary overheads
• Improving productivity
• Better workforce planning
• Stronger budgeting
• Improved cash flow forecasting

Sometimes small changes across several areas can significantly improve business performance.

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Start the new financial year with confidence

The beginning of a new financial year is the perfect time to make sure your pricing reflects the true cost of doing business.

Rather than simply increasing prices because “everyone else is”, we’ll help you understand exactly what you need to charge to achieve your desired level of profitability.

That gives you confidence to price your products and services appropriately—and build a stronger, more sustainable business.

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Ready to review your pricing?

If you’re unsure whether your current pricing is supporting your business goals, we’d love to help.

Whether you’re a trades business, professional service firm or growing business owner, we can review your charge-out rates and develop a pricing strategy that supports long-term profitability.

Book a Business Pricing Review with Intrinsic Accounting today and start the new financial year with confidence.