Why Your Pricing Is Probably Wrong (And How To Fix It)

Let me guess. When you set your prices, you looked at what your competitors charge. Or you picked a number that felt about right. Maybe you went slightly lower to be competitive. Sound familiar?


You're not alone. It's probably the most common pricing strategy in the world. And it's also why so many service business owners are working themselves into the ground and still wondering where all the money goes.


Here's the problem. The market doesn't care about your mortgage. It doesn't care if you want to take three holidays a year or if your car needs replacing. If you price based on what competitors charge, you might get clients. But you might also build a business that quietly keeps you broke.


The Right Way Round


Most business owners start with the market and hope the maths works out. The right approach is the opposite. You start with the life you actually want to live, work out what that costs, and then reverse engineer the business strategy to pay for it.


This is what I call the Freedom Number. It's not a dream board exercise. It's proper maths.


Step 1: What Does Your Ideal Life Actually Cost?


Not your survival life. Your actual life. The one with the holidays, the car you want, the gym membership, the meals out. Everything you actually spend or want to spend.


Add it all up. That monthly total is your starting point. In a recent Freedom Number Session I ran, one attendee worked out she needed £3,441 a month to fund her ideal life.


Step 2: What Does Your Business Actually Need To Generate?


Here's where most people make a fatal mistake. They think: I need £3,441 a month, so my business needs to make about £41,000 a year. Job done.


Wrong. Because you've forgotten about tax. You can't just earn what you need to spend. You have to earn enough to pay the government their share first.


To take home £3,441 a month, your business actually needs to generate £52,990 a year in salary for you. That's a gap of £12,000 before you've even counted your business overheads.


Step 3: How Many Clients Is That?


Once you know your required turnover (salary plus tax plus business overheads), you divide it by your average client value. That tells you exactly how many clients you need.


And here's the bit that changes everything. If that number feels too high, if you look at it and think 'I don't want to serve that many clients,' that's not a volume problem. That's a pricing problem. Your prices are too low for the life you want to live.


The Maths Doesn't Lie


Most business owners are running on guesswork and hoping it works out. Knowing your Freedom Number turns a vague anxiety about money into a specific problem you can actually solve.


And entrepreneurs are very good at solving specific problems.


Want to work out yours? The Six Numbers Scorecard app will calculate it for you in about 10 minutes: https://six-score-track.base44.app


Find out more about Momentum Academy



Tracy Irwin • August 20, 2026

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