6 Pricing Strategy Wins CFOs Use to Boost Margins Fast

Pricing With Confidence - How CFOs Help You Stop Underselling Yourself

Last week, we shared 5 Cash Flow Strategies Every CFO Uses to Protect Growth, and one of the most overlooked, yet powerful, ways to improve cash flow is this:

👉 Charge what you're really worth.

Underselling is a silent profit killer. And for many founders, it’s a habit, not a strategy.

Whether it’s fear of losing customers, unclear cost structures, or outdated pricing models, most businesses are leaving money on the table without even realizing it.

That’s where a CFO steps in, not just to run the numbers, but to help you price with confidence.

Why Most Business Owners Underprice

If you're like many business owners, you’ve probably hesitated to raise prices. You worry:

  • “What if we scare customers away?”

  • “What if our competitors undercut us?”

  • “What if we lose momentum?”

But the real reason often runs deeper: lack of financial clarity. You don’t know your true costs, and you can’t confidently tie pricing to your profitability goals.

So you default to cost-plus pricing (add 10%, hope for the best) or copy competitors without knowing if they're actually profitable.

🧠 Without visibility into margins, pricing becomes emotional instead of strategic.

The CFO’s Role in Profitability Analysis

A CFO brings the objectivity and data you need to price smarter. That starts with a deep profitability analysis, including:

✅ Your Real COGS (Cost of Goods Sold)

Not just raw materials or wholesale costs but all variable costs involved in delivering the product or service, including packaging, fulfillment, or third-party labor.

✅ Allocated Overhead

Fixed costs like rent, insurance, and software don't go away when you sell more. A CFO helps you allocate these costs properly to get true margin visibility as well as anticipate when there will be large overhead increases as the result in adding one more customer.

✅ Margin Contribution by Product or Service

Not all revenue is created equal. Some services may be profitable, others just look that way. CFOs help you rank and prioritize by profit contribution, not just sales volume.

From Gut Feel to Benchmarking: Pricing That’s Backed by Data

Once you understand your margins, a CFO helps you benchmark:

1. Against Competitors

What are others charging? Are you positioned as a premium provider or trying to be the cheapest? Are you competing on value or price?

2. Against Your Business Goals

Are your prices aligned with your growth targets? Can you scale sustainably at your current price point or are you slowly squeezing your own margins?

🧭 The goal isn’t to charge the most; it’s to charge the right amount based on your unique positioning, cost structure, and goals.

Value-Based Pricing vs. Cost-Plus Pricing

Cost-plus pricing is simple but it leaves money on the table. It ignores the value you deliver to your customer.

🔹 Cost-Plus:

“We charge $80 because our cost is $60.”

🔹 Value-Based:

“We charge $120 because we solve a $1,000 problem.”

A CFO helps you shift from pricing based on what it costs to what it's worth. And that unlocks higher margins, better customer targeting, and a stronger brand.

Example: The Power of Strategic Pricing

Let’s say you’re a services company charging $10,000 for a standard package. A CFO conducts a margin analysis and benchmarks your market positioning.

You raise prices by 8%, moving from $10,000 to $10,800.

Retention holds steady and your clients stay because they value the results.

But now your margin on that package jumps by 20%, because your costs remained the same.

💥 No operational changes. Just smarter pricing.

From Underselling to Scaling: Price With Confidence

Your pricing strategy isn't just about what the market will bear; it’s about what your business needs to thrive.

A CFO helps you go from reactive pricing to strategic, confident, and profitable pricing.

Because charging more isn't greedy, it’s what healthy businesses do when they understand their value.

Stop selling yourself short.

✅ Work with a CFO to uncover your true margins

✅ Benchmark your pricing against competitors and your goals

✅ Build a pricing model that supports scale, not just survival

You Need A CFO because confidence is built on clarity, and pricing is too important to guess.

Book your pricing strategy session today

Click below to download our free PDF: The 7-Point Pricing Confidence Checklist Every CEO Needs

Download Now
Kevin Lacey CPA/MBA

This article was written by Kevin Lacey CPA/MBA, principle of You Need A CFO, Inc. Many business owners struggle to understand where their cash is tied up, especially when inventory management, financial forecasting, and revenue recognition don’t align. In my blog, I share secrets to master financial strategy so that business owners can make smarter decisions and grow with confidence.

https://youneedacfo.com
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5 Cash Flow Strategies Every CFO Uses to Protect Growth