When Was Your Last Price Review?
Earlier this week, I asked my Instagram community:
How often do you review your prices? By far, the most common answer was “Whenever it makes sense”.
And my heart sank a little bit….why? That’s like saying, “I only go to the dentist when I have a toothache.”
By the time you feel the pain, it’s often too late—you’ve gone from needing a simple filling to a full root canal.
And no - this isn’t a blog sponsored by my dentist (hi Carman!), but it is about why having a regular schedule for reviewing your prices is a smart, preventative strategy for your business—even if the outcome is simply, “No changes this year.”
So, First name / friend, here are 3 great reasons why you'll want to review your prices regularly (aka do a "Price Review"). Let’s dive in….
1. Rising Costs and Hidden Opportunities
Your costs don’t wait for “the right time” to go up—they rise with inflation every year. If you’re not adjusting prices, you’re absorbing those costs aka reducing profitability. Plus, competitors may already be charging 15-20% more for similar services. A Price Review ensures you’re staying profitable and competitive.
2. Make It a Priority, Not an Afterthought
Price reviews are easy to put off because they’re decidedly uncomfortable. But without a regular cadence, they’ll get pushed aside by other more fun tasks like going for holiday pedicures with your clients. Instead, treat your Price Review as a non-negotiable on your to-do list—like filing taxes—to ensure your business stays viable.
3. You May be Working With the Wrong Clients
Want to know the fastest way to figure out who’s no longer an (energetic) fit for your services? Change your prices. When your rates reflect your value, you attract the right clients who respect your expertise and are willing to pay for it.
How often should this magical Price Review happen, you ask?
I mean, I’m not here to tell you how to run your biz, friend, but I would recommend a Price Review at least annually. That’s the most common time interval for businesses who don’t want to decrease profitability, fall behind industry standards or leave money on the table.
And while I know some of you are saying - my prices are set by the law society or my provincial association, etc etc etc. I see you. But most people in your shoes offer auxillary services where prices aren't regulated (i.e. supplement sales, consulting time, etc). That's where you can use a Price Review.
What's involved in a Price Review?
You're in luck because I'm sharing a framework today. Here’s how you might go about your very own Price Review (aka how to figure out if you're charging enough for your services):
1. Check Your Costs
Break down operating costs like salaries, rent, marketing, and technology. Don’t forget hidden costs like taxes and benefits. Bonus: Calculate your “cost per hour” (e.g., $715,000 total costs ÷ 2080 hours per work year = $343.75/hour).
2. Compare to Industry financial Benchmarks
Research average billing rates, profit margins, and revenue per employee in your industry. Many small firms aim for 20-30% profit margins—are you in line based on your answer to #1?
3. Assess the Value You Provide
This is a qualitative one: do your rates reflect the quality and outcomes you deliver? Premium pricing can position you as an expert while attracting ideal clients.
4. Analyze Client Demand
Review your utilization rates and consider raising prices if you’re fully booked or turning clients away. Optional - gather feedback from clients and leads to see if your pricing is competitive—or if you need to adjust how you communicate value.
5. Test and Adjust Your Rates
Even if your rates seem fine, this review isn’t wasted. You have a better understanding of your industry, your costs, and your position in your market.
However, if changes are needed, figure out a strategy for communicating that to new / existing clients.
You and I both know, First name / friend, that changing prices for existing clients can be a risky step, but I've got you ⬇️
Next Up: How to raise your prices and keep your fav clients—stay tuned!
Take care and talk soon,
Tanya