Running a successful business isn’t simply about attracting more customers. In many cases, it’s about charging appropriately for the value you already provide.

In this episode of The Account Rant, Latitude Accountants Client Director Jacob Fahmy sat down with Amanda Rose, CEO of Western Sydney Women, to discuss one of the biggest challenges facing business owners today—undercharging.

While the conversation focused heavily on women in business, the lessons apply to almost every entrepreneur, consultant, tradie, freelancer and small business owner across Australia.

Too many business owners price their services based on fear rather than value. They worry about rejection, hesitate to increase prices, discount their work too quickly or rely on friends and family instead of pursuing larger commercial opportunities.

These habits don’t just affect revenue—they can seriously impact profitability, cash flow, and long-term business success.

What Happened?

During the discussion, Amanda Rose challenged several common beliefs that hold business owners back.

Some of the key themes included:

• Stop treating your business like a hobby.
• Don’t rely on family and friends to buy your products or services.
• Go after larger opportunities instead of waiting for work to come to you.
• Charge based on the value you deliver—not simply the hours you spend.
• Don’t let people pleasing dictate your pricing decisions.
• Build genuine business relationships instead of seeking approval.

These aren’t just motivational ideas—they have real financial implications.

For accountants and business advisers, pricing is one of the most overlooked drivers of profitability.

Why Does This Matter?

Many Australian businesses don’t struggle because they lack customers alone.

They fail because they don’t generate enough profit.

A business can appear busy while still struggling to pay suppliers, invest in staff, purchase equipment or maintain healthy cash flow.

One of the biggest reasons?

Underpricing.

Every dollar discounted unnecessarily reduces your profit margin.

Over time, that creates pressure on:

• Cash flow
• Tax planning
• Business growth
• Hiring decisions
• Marketing budgets
• Owner salaries
• Business valuation

It’s difficult to build a sustainable business when you’re constantly working harder simply to earn the same income.

Pricing Isn’t About Time—It’s About Value

One of the strongest points discussed in the podcast was the difference between charging for time and charging for value.

Imagine it once took three hours to complete a task.

After years of experience, better systems or new technology, you can now complete the same work in one hour.

Should your fee decrease?

Not necessarily.

Clients aren’t only paying for your time.

They’re paying for:

• Your expertise
• Your experience
• Faster delivery
• Better outcomes
• Lower risk
• Professional knowledge

This principle applies across countless industries.

Whether you’re an accountant, electrician, consultant, marketing agency or tradesperson, efficiency often comes from years of investment in skills—not from doing less work.

Charging based purely on hours may undervalue the expertise you’ve spent years developing.

The Hidden Cost of People Pleasing

Many business owners hesitate to raise prices because they worry about upsetting clients.

Some fear losing work.

Others simply want everyone to like them.

While providing excellent customer service is important, constantly prioritising approval over profitability can damage your business.

Discounting every quote, avoiding difficult conversations or charging below market rates often leads to:

• Burnout
• Lower profits
• Reduced confidence
• Difficulty hiring staff
• Limited growth

Healthy businesses require healthy margins.

If your pricing doesn’t support the business you’re trying to build, something eventually has to give.

Stop Treating Your Business Like a Hobby

Many businesses begin as side hustles.

There’s nothing wrong with that.

The challenge comes when business owners continue making hobby decisions after becoming commercial businesses.

Examples include:

• Giving away free work.
• Constantly discounting services.
• Avoiding contracts.
• Not reviewing pricing.
• Working excessive hours without improving profitability.

Successful businesses eventually need systems, processes, financial reporting and strategic planning.

Treating your business professionally often means making decisions based on data—not emotion.

Go After Bigger Contracts Instead of Waiting for Customers

One of Amanda Rose’s strongest messages throughout the podcast is that business owners need to actively pursue opportunities rather than waiting for work to come to them.

Many new businesses rely heavily on friends, family, and word-of-mouth referrals during the early stages. While those supporters can provide valuable encouragement, they rarely create sustainable long-term growth.

Commercial success usually comes from identifying where demand already exists and confidently pursuing larger opportunities.

For many Australian businesses, that could mean:

• Tendering for larger projects.
• Building relationships with commercial clients.
• Expanding into new industries.
• Developing strategic referral partnerships.
• Investing in marketing that reaches decision-makers.

Growing a business requires a shift in mindset. Rather than hoping customers will find you, successful businesses actively position themselves where opportunities already exist.

From an accounting perspective, securing larger contracts can also improve revenue predictability, support stronger cash flow, and create greater confidence when planning future growth.

Relationship Building Is One of Your Greatest Business Assets

Another important theme throughout the discussion was the value of building genuine relationships.

Amanda explained that strong relationships have been one of the biggest contributors to her own business success—not because of aggressive selling, but because people naturally want to work with businesses they trust.

For Australian business owners, networking isn’t simply about collecting business cards. It’s about creating long-term relationships with clients, suppliers, advisers and industry partners.

These relationships often lead to:

• Repeat business.
• Referrals.
• Strategic partnerships.
• Joint ventures.
• Larger commercial opportunities.

Combined with sound financial management and professional advice, strong relationships can become one of the most valuable growth assets a business has.

The Best Business Decisions Combine Intuition With Good Financial Data

One of the more interesting conversations between Jacob Fahmy and Amanda Rose explored intuition.

Amanda suggested that many business owners naturally trust their instincts when assessing people and opportunities, while Jacob highlighted the importance of supporting decisions with facts and financial information.

In reality, successful businesses often combine both approaches.

Good instincts may help identify opportunities, but accurate financial reporting helps determine whether those opportunities make commercial sense.

Business owners should regularly review:

• Revenue trends.
• Gross profit margins.
• Cash flow forecasts.
• Customer profitability.
• Business performance.

When experience is supported by reliable financial information, decision-making becomes significantly more effective.

Leadership Requires Strategy, Not Approval

Leadership was another major focus of the podcast.

Amanda challenged the idea that effective leaders need everyone to agree with them.

Instead, she explained that strong leaders choose their battles carefully, build support privately, and focus on achieving meaningful outcomes rather than seeking approval.

For business owners, this lesson extends well beyond managing people.

Strategic leadership also means making difficult financial decisions when necessary, including:

• Reviewing pricing.
• Improving profitability.
• Ending unprofitable services.
• Investing in technology.
• Hiring the right people.
• Saying no to unsuitable opportunities.

Strong leadership isn’t about avoiding uncomfortable conversations—it’s about making decisions that support the long-term success of the business.

Values and Ethics Still Matter in Business

Beyond pricing and leadership, Amanda also spoke about integrity.

She explained that there are certain values she refuses to compromise, even if it means walking away from opportunities.

For Australian business owners, ethical decision-making isn’t simply about reputation—it also supports long-term business sustainability.

Maintaining accurate records, meeting tax obligations, complying with employment laws, and operating transparently all contribute to building trust with customers, employees, and regulators.

Businesses built on strong values are often better positioned to build lasting client relationships and maintain credibility over time.

What Are the Accounting and Business Implications?

From an accounting perspective, pricing directly affects almost every financial metric.

Increasing revenue without improving pricing may simply create more work.

Improving pricing, however, can strengthen profitability without increasing workload.

Regular financial reporting allows business owners to understand whether pricing is actually supporting business growth.

Some key areas to monitor include:

• Gross profit margins
• Net profit
• Cash flow
• Labour costs
• Overheads
• Client profitability
• Average revenue per customer

Without accurate financial reporting, it’s difficult to know whether your pricing strategy is working.

This is where proactive business advice can make a significant difference.

What Should Business Owners Do Now?

If you’ve been questioning your pricing, now is a good time to review your business objectively.

Consider:

• Reviewing your pricing against current market conditions.
• Calculating the true cost of delivering your services.
• Measuring profit margins instead of focusing only on revenue.
• Identifying your most profitable clients.
• Eliminating unnecessary discounts.
• Investing in systems that improve efficiency.
• Building relationships that generate long-term opportunities.
• Working with advisers who can help you understand your numbers.

Sometimes increasing profits isn’t about finding more customers.

It’s about charging appropriately for the value you already deliver.

Common Mistakes to Avoid

Avoid these common pricing mistakes:

• Charging based solely on hours worked.
• Assuming lower prices attract better clients.
• Constantly discounting to win work.
• Never reviewing pricing.
• Giving away too much free work.
• Ignoring profitability reports.
• Letting fear dictate business decisions.
• Treating your business like a hobby instead of a commercial enterprise.

Frequently Asked Questions

Why do many business owners undercharge?

Many business owners fear losing customers, undervalue their expertise or compare themselves to competitors instead of focusing on the value they provide.

Is charging more always the right decision?

Not necessarily. Pricing should reflect the value delivered, market conditions, operating costs and your overall business strategy.

Should I charge based on time or value?

Many service-based businesses increasingly price according to value, expertise and outcomes rather than time alone.

How often should I review my pricing?

At least annually, or whenever your costs, market conditions or service offerings change.

Can undercharging affect cash flow?

Yes. Lower margins reduce available cash to cover operating expenses, tax obligations and future investment.

Is discounting a good growth strategy?

Occasional promotions may be appropriate, but constant discounting can reduce profitability and devalue your services.

How do I know if my business is profitable?

Review your financial reports regularly, including profit and loss statements, gross margins and cash flow reports.

What financial reports should business owners monitor?

Key reports include your Profit & Loss Statement, Balance Sheet, Cash Flow Statement and budget performance reports.

Why is profitability more important than revenue?

High revenue doesn’t always mean a healthy business. Strong profit margins provide the resources needed to invest, grow and remain financially stable.

How can an accountant help with pricing?

A proactive accountant can analyse profitability, identify pricing opportunities, improve cash flow and provide strategic advice to support sustainable business growth.

Final Thoughts

Amanda Rose’s conversation with Jacob Fahmy highlights an important reality for Australian business owners.

Building a successful business isn’t simply about working harder. It’s about charging appropriately for your expertise, pursuing meaningful opportunities, building genuine relationships, leading with confidence and making informed financial decisions.

Whether you’re running a side hustle, growing a professional service firm or leading an established company, understanding your numbers is just as important as believing in the value you provide.

At Latitude Accountants, we work with business owners every day to improve profitability, strengthen cash flow and provide practical advice that supports long-term growth. When strong business strategy is backed by accurate financial reporting, business owners are better equipped to make confident decisions and build sustainable success.

Ready to Build a More Profitable Business?

If you’re unsure whether your pricing strategy is supporting your profitability, cash flow or long-term business growth, speak with Latitude Accountants. Our experienced team can help you understand your numbers, improve business performance, stay compliant and make confident financial decisions that support sustainable success. Whether you’re reviewing your pricing, planning for growth or looking to improve profitability, we’re here to help.

📍 Sydney Olympic Park | Marrickville | Melbourne | Loxton
📞 1300 706 597
📧 info@latitudeaccountants.com.au

Disclaimer

This article is intended as general information only and does not constitute accounting, taxation, financial or legal advice. Every business operates under different circumstances. Before making decisions about pricing, business structure, taxation or financial strategy, seek professional advice tailored to your individual situation.