Price for Profit: How to Build a Business That Actually Pays You with Pam Jordan
xIn this solo episode of Pivot to Profit, host Pam Jordan tackles one of the most common — and costly — challenges business owners face: pricing. As a seasoned fractional CFO, Pam has seen it all, and she’s here to pull back the curtain on how underpricing silently sabotages profitability and what to do about it.
Pam opens with a bold truth — pricing is the number one issue holding businesses back from true financial freedom. Citing research from FreshBooks and Harvard Business Review, she explains that a mere 5% undercharge can slash your net profit by up to 30%. For too many entrepreneurs, that’s the difference between a thriving business and constant financial stress.
The episode dives into the real formula for profitable pricing, one that goes far beyond “what competitors charge” or “what feels fair.” Pam walks listeners through three essential steps:
Start with profit goals — know exactly how much you want (and need) to keep after paying yourself, covering debt, and setting aside cash for taxes and reserves.
Calculate direct costs — include labor (even your own), materials, and fulfillment expenses.
Account for overhead — the hidden profit killer. Software, rent, admin costs, and fluctuating expenses all belong in your pricing model.
Pam doesn’t just talk theory — she shares a free downloadable pricing guide and Google Sheet that lets you plug in your numbers and see, in black and white, what your prices should be. Most clients, she says, are shocked to discover they’ve been selling at a loss.
Beyond the math, Pam digs into the mindset behind pricing, urging business owners to confront money beliefs that keep them undervaluing their worth. She reminds listeners that “selling more at a loss just makes you broke faster,” and that sustainable growth starts with pricing for profit — not comparison.
Whether you’re a service provider, product-based entrepreneur, or scaling past seven figures, this episode is your roadmap to pricing with confidence and building a business that pays you what you deserve.
EPISODE TRANSCRIPT
Host:
Welcome to the Pivot to Profit podcast, where we believe that understanding your numbers is the key to freedom of time and money. Because at the end of the day, it’s not about what you make—it’s about what you keep.
Each week, we share real stories from entrepreneurs who have faced the challenges of growing a business and how gaining financial clarity unlocked new levels of profit and freedom.
But today’s episode is a little different—it’s a solo episode focused on one of the most important topics in business: pricing. Whether you’re a service provider or a product-based entrepreneur, this is your step-by-step guide to creating a profitable pricing strategy.
Host:
As fractional CFOs at Pivot Business Group, pricing is the number one issue we see holding business owners back from real financial success.
Most entrepreneurs are great at what they do—sales, fulfillment, client relationships—but behind the scenes, the financial side can be messy. That’s okay! Most people were never taught how to read financials or calculate margins. But when you understand your numbers, everything changes.
That’s why I’ve created a free pricing guide and Google Sheet calculator to help you price your products and services for profit. You can download it through the link in the show notes.
Host:
Here’s the hard truth: according to FreshBooks, 72% of small businesses underprice themselves, and Harvard Business Review found that a 5% undercharge can drop net profit by 30%.
Pricing isn’t about guessing or matching competitors—it’s about building your prices around your actual costs and your profit goals.
Here’s the process we use with clients:
Start with profit. Decide how much you want to make—after paying yourself, covering debt, setting aside cash for taxes, and building reserves.
Understand your direct costs. Include materials, labor, fulfillment expenses, and even your own time.
Account for overhead. Don’t forget rent, software, marketing, and insurance. Those fixed costs eat into profit if you don’t include them in pricing.
When you put all of this together, you’ll see the real number you need to charge to make money on every sale.
Host:
I can’t tell you how many times business owners discover they’re actually losing money on every client. One client was charging $10,000 for a service—but it cost them $11,000 to deliver it.
That’s why competitor-based pricing doesn’t work. Price based on your data, not your emotions.
Host:
And let’s talk mindset. Many business owners underprice because of limiting beliefs about money. If you wouldn’t personally pay $5,000 for your own service, it can feel uncomfortable to charge that much. But your clients see value differently—and often, they’re willing to pay more than you think.
So it’s time to check your mindset and start valuing the transformation you provide.
Host:
Here’s the pricing formula we use:
Cost to deliver + overhead expenses ÷ target profit margin = target price.
It sounds technical, but the free download does all the math for you. Plug in your numbers and it shows what you should charge. And most of the time, that number is higher than your current price—which explains your lower profits.
Host:
If that new price feels too high, don’t panic. You can improve efficiency, increase volume, bundle services, or trim overhead. But remember: selling more at a loss only makes you broke faster.
Selling more at a profit is the key to growth and freedom.
Host:
So here’s your next step: download the guide, grab the spreadsheet, and walk through the numbers for your own business.
Profit doesn’t happen by accident—it’s the result of intentional pricing, smart strategy, and clear financial understanding.
Because at the end of the day, it’s not what you make—it’s what you keep.