Charge more and have fewer clients or charge less and have more?

The Pricing Conundrum

By Business Writer

Confused: This SME owner is not sure whether to charge more or less on his clients / customers Image: Istock

In any sector, when you become self-employed or an entrepreneur, setting a price for your

goods and services can be tricky. You need to find a balance that reflects your worth while

remaining competitive enough to keep the work flowing.

Setting your price too high may boost profits but could make you less competitive, while

pricing too low might attract more clients but leave you stretched thin trying to meet

demand.

“Where do you stand on this debate?” Drive 959 asked its listeners.

Glen Lewis shared his perspective:

“What I have learned is that for whatever it is that you want to do, there is always a

market. I always use clothing brands as an example. Certain retailers are cheaper, while

others charge exorbitant amounts. The same applies to car dealerships. Expensive as

they are, there is always a market.”

Skhumba added, “Find a way to specialise, and people will make it known.”

Kgomotso noted that this has become harder, especially post-Covid, as many people lost

money and the market shrunk. However, she believes that charging slightly higher can help

you break even with fewer clients.

For the full discussion, listen to the kaya fm podcast.

Source: kaya959.co.za