Pricing With Purpose

How to Research and Set Prices That Actually Work

Pricing a service can feel like one of the most uncomfortable parts of running a business—especially if you didn’t start out wanting to be “a business person.” Many business owners or service providers pick a number based on what feels fair, what someone else charges, or what they think people will tolerate.

But sustainable pricing isn’t a guess. It’s a research process. When you approach it thoughtfully before you offer a service or product, you give yourself the chance to build something that supports both your finances and your quality of life. If you’re already in the thick of it and need a little help making your pricing work, it’s not too late to start. Below I’ll give you a crash course in pricing in only 5 steps (that you can definitely tackle in a weekend).

Start With Your Overhead 

Before you look at competitors, surveys, or market trends, you need to know your overhead (the cost of running your business). Usually these are somewhat static, no matter how many clients you have. 

Overhead includes fixed expenses like software, insurance, accounting, professional services, equipment, and taxes, along with variable costs such as transaction fees, supplies, mileage, or subcontracted help. Together, these numbers define your break-even point. aka - the minimum you must earn to avoid losing money.

This step matters more than anything else because your overhead is always different from your competitors’. Different tools, different experience levels, and different life circumstances all affect what you need to charge. Pricing without this clarity often leads to underpricing, burnout, or quietly resenting work you once loved.

Your overhead sets the floor. Everything else builds on that. This is 100% non-negotiable. 

Research the Market 

Once you know your numbers, zoom out and look at the market rate for similar services in your area or niche. This step is not honing in on your service or product costs just yet, but instead establishing a range that you want to fall in.

Spend time reviewing competitor websites. Look at service packages, hourly rates, retainers, and scope descriptions. You’re not searching for the perfect price—you’re identifying the high and the low of your service/product in your market.

• The lower threshold (budget or entry-level pricing)These competitors may have less skills/education/experience than youThese competitors may be newer to the market than you without a loyal customer base. These competitors may have no overhead (think trust fund kid working on a hobby as a business)
  

• The upper threshold (premium or boutique pricing) These competitors are usually well established in your community. They have been operating for 5+ years. They usually have a good website, solid socials, and a loyal customer base. These folks may have more experience/education/skills and/or capacity than you do.

  
  

This gives you context. It helps you understand what clients are already seeing and what feels realistic for your market. The goal isn’t to copy—it’s to understand where there’s room to position yourself thoughtfully. Try not to get too deep in the weeds here, but write them down simply 

Talk to People (Surveys and Real Conversations Matter)

Online research only tells part of the story. Qualitative research—actual conversations—fills in the gaps.

Short surveys can help you learn what potential clients value most, what problems they’re trying to solve, and what would make a service feel worth the investment. Instead of focusing only on price, ask about outcomes, priorities, and deal-breakers.

Equally valuable? Talking with peers. Take someone to lunch or coffee. Ask what services feel sustainable, where clients push back, and what they no longer offer because it isn’t worth the time. These conversations often reveal insights no pricing page ever will.

Find Your Middle Ground (Narrow the Gap Strategically)

With your overhead and research in hand, you can start narrowing the range.

This is where you:

• Lower the upper threshold to reflect your market realities

• Raise the lower threshold to ensure sustainability
  

This process helps you find a competitive middle ground—a price that covers costs, reflects your value, and aligns with what clients are willing to pay. For many service providers, this is also where value-based pricing comes into play: pricing based on outcomes, expertise, and efficiency rather than just hours worked.

If the numbers don’t work at this stage, that’s not a failure—it’s information. Some services simply aren’t viable without changes to scope, delivery, or audience.

Decide If the Service Is Worth Your Time

A service isn’t truly viable unless it pays you enough to show up well.

This is where you consider profit margin and personal capacity. Ask yourself:

• How much do I need to earn per service for this to feel worthwhile?

• Does this pricing support my energy, time, and long-term goals?

• Can I deliver this consistently without sacrificing my well-being?
  

Sometimes constraints—like grants, contracts, or urgent needs—limit pricing flexibility. That doesn’t mean you stop evaluating whether the work supports you.

Final Thoughts: Pricing Lives in Context

Pricing doesn’t exist in a vacuum. It’s shaped by your market’s income levels, competition, and saturation, as well as your brand positioning. A luxe, boutique brand carries different expectations than an accessible, community-based one. Marketing style, visibility, and even the broader economy all play a role.

Most importantly, pricing is a business model decision, not just a number on a page.

Doing this research early helps you decide whether a service fits your needs, goals, and circumstances—before you’re locked into something unsustainable. And when timing, experience, or capacity make this process feel overwhelming, working with a business consultant can help you assess viability, refine strategy, and adjust course with clarity and confidence.

Financial freedom doesn’t come from charging the highest price—it comes from charging the right one.