7 signals that it's time to rethink your pricing strategy
April 2025 - As a business owner, you want to offer products or services at a fair, profitable price. But the market changes, customers evolve and your cost structure shifts. That's why it's a good idea to regularly scrutinise your pricing strategy. Do you notice one or more of the signals below? Then it might be time to revisit your pricing.
1. Customers often ask for discounts
When your customers structurally negotiate your price, it is a sign that your value does not come across clearly enough, or that your positioning is incorrect. Consider how to better communicate your added value, e.g. with customer testimonials or guarantees.
2. Your competitors are pricing lower or higher
Keep monitoring your competition. If others adjust their prices (up or down) and you remain stagnant, you risk falling out of the market - or being undervalued. Price yourself consciously, not automatically.
3. Your sales are rising, but your margin is falling
Selling more is good, but only if you actually earn something from it. Check your gross and net margins regularly. If they are under pressure because of rising costs, you need to make adjustments. Don't just think about raising prices, but also about cost optimisation.
4. Many viewers, few buyers
Do you get a lot of website traffic or quotation requests, but few effective sales? Then your price may be a barrier. Or you do not communicate the benefits of your product or service sufficiently. A clear price structure with added value can help.
5. Your prices haven't been adjusted for years
Everything is getting more expensive: wages, energy, raw materials... Yet many entrepreneurs hesitate to raise their prices. Understandable, but unsustainable in the long run. If necessary, build in small, annual adjustments to spread the effect.
6. You want to appeal to a new target group
Do you target a different audience, for example a premium segment or just price-conscious customers? Then your pricing strategy needs to move with them. Research what they expect and what is credible for them in terms of pricing.
7. Your business model changes
Are you starting with subscriptions, bundles or additional services? Then this requires a different pricing strategy. Think of psychological price thresholds, such as €49 instead of €50, or create different price packages.
Conclusion: your price is never just a number. It is a signal to your customer as well as a lever for your profitability. By staying alert and evaluating regularly, you keep your pricing strategy sharp - and your business healthy.
