As a CFO, a great deal of my clients are selling way too low. My rule of thumb is, if you do not get too many complaints from customers that your prices are high, then usually your prices are too low. Relative to competitive pricing, you can always use your customers as the barometer. You should be getting complaints about prices about 25 to 33% of the time, and if you're not, your prices are too low. 



One problem I see is when we business owners are doing the selling, we tend to give away too much. We tend to give too many discounts and credits, and sometimes these discounts and credits are imaginary. The reason why we do this is we business owners carry a lot of perceptions. We carry perceptions about how good or bad business currently is. We carry perceptions about how badly we need a sale. We carry perceptions about what constitutes a price, a high price, or a low price. These are all emotional factors that we go through. 

We need to stop this! These perceptions we have about the state of the business and how badly we need the sale and what constitutes a high or low price will absolutely put us out of business. We must maintain consistent pricing, even if we are the owners and can change the prices on a whim. 

You need to follow the price list that you prepared and agreed to with your staff and/or your advisory board. This is the price list that you prepared when you looked at the marketplace logically and said that these are the prices that are fair and offer the customer value.