2 min read
How to do it
Work out the true cost of delivering each product or service — including a share of overheads, not just direct costs — then add the margin you need to be sustainably profitable. The markup and price calculator turns a target margin into a price. Pricing off competitors or gut feel usually leaves money on the table or, worse, sells at a loss.
What this means for your company
Small price changes move profit far more than most owners expect — a few percent on price can transform the bottom line, because it drops straight through to profit. Review pricing regularly with a pricing-review worksheet, and protect your gross margin when costs rise rather than absorbing every increase.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Should I match my competitors' prices?
Use them as context, not a rule. Your costs and value are not theirs. Pricing purely to undercut competitors often means selling below a sustainable margin. Price from your own costs and target profit first.
How much does a small price rise affect profit?
A lot. Because a price increase drops almost entirely to the bottom line, a few percent on price can lift profit far more than the same effort spent cutting costs or chasing extra volume.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.