Growth

Pricing for margin, not volume: a workbook for owner-managers

Most small businesses discount their way into a cash flow problem. A structured price review usually finds seven to twelve per cent.

Callum FramePricing consultant·15 July 2026·8 min read

Before you change a single price, work out your contribution margin per product line. Owners are routinely surprised by which lines actually fund the business.

Then segment. The customers who negotiated hardest three years ago are rarely the ones who would leave over a five per cent rise today.

Communicate increases with a reason and a date. Silence invites negotiation; a clear notice period with a value story usually does not.

What to do next

  • Calculate contribution margin by line before repricing
  • Give at least thirty days' notice on increases
  • Track churn weekly for the first quarter after a change

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