How Accountants Can Help You Assess Profit Margins & Get Your Pricing Right
You might be busy growing sales, but here’s the uncomfortable truth: If your prices aren’t set correctly, you could be working harder for less reward.
Many business owners set their prices based on gut feel, competitor rates, or what they think the market will pay, without really knowing if that price leaves them with a healthy profit margin. That’s where we come in.
Why Pricing Matters More Than You Think
Pricing isn’t just about covering costs. It’s about:
- Ensuring every sale contributes to profit
- Covering overheads beyond direct costs (like admin, rent, and marketing)
- Leaving room for growth, investment, and sustainable cashflow
- Building cash reserves to cover future costs and emergencies
Without proper margin analysis, you risk undercharging, which can cause cashflow problems and restrict growth or overcharging, which might price you out of the market.
How Brisan Helps You Get Pricing Right – Through Insight
- Understanding True Costs
We help you calculate your total cost base, not just direct costs like materials or labour. This includes overhead allocation and hidden expenses you may overlook. - Margin Analysis
We assess your gross margin (the profit after direct costs) and net margin (what’s left after all expenses). This gives you a clear picture of what’s really being made on each product or service. - Scenario Planning
We can model different pricing strategies to see:
- The impact of a price increase on your profitability
- Whether discounts are eroding your margins
- The sales volume you need to hit profit targets
- If a product or service should be ditched, because its not profitable
- Market & Competitor Insights
We don’t just look inward, we help you compare your margins with industry benchmarks, ensuring you stay competitive but sustainable. For example, if you’re working in the construction industry, we can look at industry averages for call out and charge out rates. - Ongoing Review
Pricing isn’t a one-time exercise. We work with clients to review costs and margins regularly, especially as supplier prices and market conditions change.
Small Tweaks, Big Results
Often, small price adjustments or cost efficiencies can make a big difference to your bottom line, without alienating customers.
At Brisan, we’re not just about the numbers, we help you make strategic decisions so that your pricing is profitable, competitive, and fit for your business goals.
If your business needs a deeper dive into the numbers, book in for a discovery call to discuss what our Insight package has to offer.
