The Price Is Right: How to Build a Pricing Strategy That Maximizes Profit
Setting the right price for your product or service is one of the most important financial decisions you’ll make. Get it wrong, and you could:
❌ Charge too little, leaving money on the table.
❌ Charge too much, scaring off customers.
❌ Use the wrong pricing model, making it harder to scale.
A good pricing strategy isn’t just about covering costs—it’s about maximizing value and long-term profitability.
The Problem: A Pricing Strategy That Doesn’t Work
BrightWeb Studios, a high-end digital agency, was known for top-tier design and branding. But despite their reputation, they were struggling to scale profitably.
Why? Their pricing model was a mess.
💰 Their project-based fees were too low, underestimating the real time spent on each job.
💰 They weren’t charging for revisions or extra work, meaning projects ran over budget.
💰 They had no recurring revenue model, so each month, they started at £0 in revenue.
As a result, their margins were razor-thin, and the business felt stuck.
How a Fractional CFO Would Have Fixed Pricing for Maximum Profit
🔹 Finding the Right Pricing Model – A CFO would have helped BrightWeb:
✔ Shift from project-based fees to retainers, creating a predictable revenue stream.
✔ Introduce value-based pricing, charging more for strategic, high-impact work.
✔ Implement tiered pricing, offering different levels of service at different price points.
🔹 Optimizing Margins Without Losing Clients – Instead of randomly increasing prices, a CFO would:
✔ Analyze customer lifetime value (LTV) to justify premium pricing.
✔ Introduce add-on pricing for extra revisions, reducing unpaid work.
✔ Improve operational efficiency, making projects more profitable without raising costs.
🔹 Testing and Iterating the New Pricing Strategy – Pricing isn’t a one-and-done deal. A CFO would:
✔ Roll out pricing changes gradually, tracking customer responses.
✔ A/B test different pricing structures to see what works best.
✔ Use financial data to ensure the company stayed competitive while increasing profitability.
The Outcome?
With a smarter pricing model, BrightWeb increased their revenue by 40% in one year—without needing more clients. Their margins improved, and they finally had predictable, scalable growth.
