Unpacking Your Pricing Strategy: A Bookkeeper’s View on Revenue Optimization

 By your no-nonsense, spreadsheet-loving Canadian bookkeeper with a strong opinion on your pricing and a weak spot for double-doubles.

Let’s talk about pricing. That magical number you pull out of thin air after three sleepless nights, two existential crises, and one “competitive research session” (aka scrolling your competitor’s website with judgmental eyebrows).

As your ever-watchful Canadian bookkeeper, I see it all – from the folks charging $3 for a service that takes four hours, to the brave souls asking $1,200 for an artisanal dog sweater.

Spoiler Alert: Most people are undercharging. And most of the time, your pricing strategy is less “strategy” and more “vibes.” Let’s fix that.

Revenue Optimization? Sounds Fancy. It’s Just Money Math.

I know “revenue optimization” sounds like something they teach in MBA school while sipping lattes in ergonomic chairs. But really, it’s just a fancy way of asking:

“Are you charging the right amount to actually make money and not cry quietly into your invoice software?”

And that, my friend, is a question your bookkeeper asks on the regular, usually after we notice you made $30,000 in sales and somehow still can’t afford printer ink.

Step One: Know Your Costs (Like, ACTUALLY KNOW them)

Let me put this kindly: Guessing is not a strategy.

If you’re pricing your product based on what your cousin’s Etsy store charges, you may be in danger.

You need to look at:

-          Cost of Goods Sold (COGS)

o   Materials, packaging, shipping, tears

-          Overhead

o   Rent, phone bill, those five subscriptions you forgot you had

-          Your Time

o   Yes, it counts even if you just “whipped it together in Canva”

Once you know what it costs to run your biz, then we can talk about making PROFIT. Remember profit? That elusive creature you dreamed of when you started this thing?

Step Two: Understand Your Value (Yes, You Have Some)

Here’s a wild Canadian truth: you are probably too polite to charge what you’re worth. You’re afraid to scare off customers. You want to “keep it accessible.” I get it. We’re all raised on a healthy diet of humility and roll-up-the-rim cups.

But pricing isn’t about being the cheapest. It’s about being the best value for the right customer. And trust me, there are people out there happily paying $9 for a cold-pressed celery juice. They’ll survive your modest rate increases.

Step Three: Watch Your Margins Like a Hawk with a Calculator

Let’s say you’re selling something for $100. Cool. But if it costs you $95 to make it happen? Congratulations, you’ve just made $5 and a bad decision.

Your gross profit margin is a big deal. It’s the difference between thriving and living off granola bars because your business can’t afford groceries.

If your margins are thin, it’s time to either:

-Raise your prices

-Lower your costs

-Cry softly while doing both (this is more common than you think)

Step Four: Test, Tweak, Repeat

Pricing is not like a tattoo. It’s not permanent. (Unless you carved it into your signage, in which case…we need to talk.)

Try different strategies:

-Tiered Pricing (Good, Better, Fancy-Pants)

-Bundling services (like a combo meal, but with less salt)

-Subscription Models (hello, reliable income stream!)

Test what works. Use your numbers to make decisions. Not your feelings. Feelings are for Netflix. Pricing is for math.

Your Bookkeeper’s Final Thought (and Mild Judgment)

Look, I don’t want to tell you how to live your life. But as the person reconciling your bank accounts and quietly watching your cash flow run away like a loon at sunrise, I will say this:

Charge what you’re worth. Back it up with value. And check your dang margins.

Your pricing is your revenue engine. And I want your business running like a finely tuned snowmobile – not sputtering along like a 1992 Civic in a January blizzard.

So go ahead – unpack that pricing strategy. Dust it off. Shake out the guesswork. And if you need a little help optimizing things the smart (and funny) way? Your Canadian bookkeeper is right here, calculator in one hand, Timbit in the other.