{"id":1012,"date":"2026-04-07T15:09:41","date_gmt":"2026-04-07T13:09:41","guid":{"rendered":"https:\/\/salestrategy.consulting\/?p=1012"},"modified":"2026-04-07T15:09:41","modified_gmt":"2026-04-07T13:09:41","slug":"correct-selling-price-philadelphia-business","status":"publish","type":"post","link":"https:\/\/salestrategy.consulting\/index.php\/en\/2026\/04\/07\/correct-selling-price-philadelphia-business\/","title":{"rendered":"CORRECT SELLING PRICE: THE PRICING MISTAKE MANY PHILADELPHIA BUSINESSES MAKE"},"content":{"rendered":"[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text]\n<p data-start=\"98\" data-end=\"236\">The correct selling price can be the difference between a business that works hard and one that actually makes money.<\/p>\n<p data-start=\"238\" data-end=\"316\">I\u2019ve seen this situation many times in small businesses across Philadelphia.<\/p>\n<p data-start=\"318\" data-end=\"414\">The restaurant is full.<br data-start=\"341\" data-end=\"344\" \/>The beauty salon is fully booked.<br data-start=\"377\" data-end=\"380\" \/>The store is constantly selling.<\/p>\n<p data-start=\"416\" data-end=\"500\">But at the end of the month, the owner says something that comes up far too often:<\/p>\n<p data-start=\"502\" data-end=\"562\">\u201cSales were great\u2026 but I don\u2019t know where the money went.\u201d<\/p>\n<p data-start=\"564\" data-end=\"661\">Most of the time, the problem isn\u2019t marketing.<br data-start=\"610\" data-end=\"613\" \/>It\u2019s not the product.<br data-start=\"634\" data-end=\"637\" \/>It\u2019s not the location.<\/p>\n<p data-start=\"663\" data-end=\"759\">The issue is usually much simpler:<br data-start=\"697\" data-end=\"700\" \/>The business doesn\u2019t have a clear, correct selling price.<\/p>\n<p data-start=\"761\" data-end=\"865\">And when pricing isn\u2019t properly calculated, every sale can turn into work\u2026 but not necessarily profit.<\/p>\n<p data-start=\"867\" data-end=\"945\">Today, we\u2019re going to break this down in a clear, simple, and practical way.<\/p>\n<p data-start=\"947\" data-end=\"997\">Because pricing isn\u2019t guessing.<br data-start=\"978\" data-end=\"981\" \/>It\u2019s strategy.<\/p>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;What it really means to have the correct selling price&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]When we talk about the correct selling price, we\u2019re not just talking about charging more.<br \/>\nWe\u2019re not talking about copying the business next door either.<\/p>\n<p>The correct selling price is one that meets three conditions:<\/p>\n<ol>\n<li>Covers your costs<\/li>\n<li>Generates a margin<\/li>\n<li>Makes sense to the customer<\/li>\n<\/ol>\n<p>When one of these three is missing, problems start to appear.<\/p>\n<p>Many businesses in Philadelphia set prices by only looking at competitors.<\/p>\n<p>\u201cIf the restaurant on the corner sells the dish for $15, I\u2019ll do the same.\u201d<\/p>\n<p>But that business might have:<\/p>\n<ul>\n<li>lower rent<\/li>\n<li>fewer employees<\/li>\n<li>a different supplier<\/li>\n<li>a different sales volume<\/li>\n<\/ul>\n<p>Copying prices is one of the fastest ways to destroy your margin.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;A simple formula to calculate your correct selling price&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]There are many complex formulas, but for a small business, we\u2019ll keep it simple:<\/p>\n<p><strong>Selling Price = Total Cost + Desired Margin<\/strong><\/p>\n<p>Total cost includes:<\/p>\n<ul>\n<li>Variable costs<\/li>\n<li>Allocated fixed costs<\/li>\n<\/ul>\n<p>And the margin is what allows you to:<\/p>\n<ul>\n<li>reinvest<\/li>\n<li>grow<\/li>\n<li>make a living from your business<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;Real example in Philadelphia: restaurant in South Philly&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]Let\u2019s imagine a Latin restaurant.<\/p>\n<p>Cost of ingredients per dish: $6<br \/>\nPackaging: $1<br \/>\nCard fee: $0.50<\/p>\n<p>Total variable cost: $7.50<\/p>\n<p>Now let\u2019s add a proportional share of fixed expenses:<br \/>\nRent, utilities, insurance, etc.<\/p>\n<p>Let\u2019s say that adds $3 per dish.<\/p>\n<p><strong>Total real cost: $10.50<\/strong><\/p>\n<p>If the restaurant sells the dish at $11 because \u201cthat\u2019s what competitors charge,\u201d the margin is minimal.<\/p>\n<p>Each sale generates just $0.50.<\/p>\n<p>After taxes, discounts, or waste\u2026 the profit disappears.<\/p>\n<p>That business does not have a correct selling price.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;Example 2: beauty salon in Northeast Philly&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]Average service price: $80<\/p>\n<p>Variable costs:<br \/>\nProducts: $12<br \/>\nDisposable materials: $3<br \/>\nCard fee: $4<\/p>\n<p>Total variable cost: $19<\/p>\n<p>Fixed costs per service (allocated):<br \/>\nRent, software, insurance: $15<\/p>\n<p><strong>Total cost: $34<\/strong><\/p>\n<p>If the price is $80, the margin seems solid.<\/p>\n<p>But if the business starts offering 20% discounts, the price drops to $64.<\/p>\n<p>The real margin changes completely.<\/p>\n<p>This is where many businesses start losing money without realizing it.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;The most common pricing mistake&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]Many entrepreneurs believe their problem is that their price is too high.<\/p>\n<p>But in reality, the mistake is often the opposite.<\/p>\n<p>The price is too low for the business model.<\/p>\n<p>I often hear statements like:<\/p>\n<p>\u201cIf I raise prices, I\u2019ll lose customers.\u201d<\/p>\n<p>But the real question is:<\/p>\n<p>Can you sustain your business with your current prices?<\/p>\n<p>If the answer is no, your price needs to change.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;How to know if your selling price is correct&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]Ask yourself three simple questions:<\/p>\n<ul>\n<li>Does your margin cover your expenses?<\/li>\n<li>Can you pay fair wages?<\/li>\n<li>Does the business generate money to reinvest?<\/li>\n<\/ul>\n<p>If the answer to any of these is no, your price is probably not correct.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/4&#8243;][vc_custom_heading text=&#8221;What to do tomorrow&#8221; google_fonts=&#8221;font_family:Montserrat%3Aregular%2C700|font_style:400%20regular%3A400%3Anormal&#8221;][\/vc_column_inner][vc_column_inner width=&#8221;3\/4&#8243;][vc_column_text]\n<ol>\n<li>Calculate the real cost of your product or service<\/li>\n<li>Add a proportional share of fixed expenses<\/li>\n<li>Define the margin you need<\/li>\n<\/ol>\n<p>That calculation brings you closer to your correct selling price.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text]If you want to calculate your correct selling price without complications, we\u2019ve prepared a simple worksheet that we use with small businesses in Philadelphia. You can request it by texting \u201cPRICE\u201d on WhatsApp or through the form on our website.<\/p>\n<p>Sometimes you don\u2019t need to work more hours or attract more customers; what you need is clarity to make better decisions. If you\u2019d like to review your business numbers together and build a stronger sales strategy, we\u2019d be happy to help. Shall we talk?[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner width=&#8221;1\/6&#8243;][\/vc_column_inner][vc_column_inner width=&#8221;2\/3&#8243;]<style id=\"wpforms-css-vars-441\">\n\t\t\t\t#wpforms-441 {\n\t\t\t\t\n\t\t\t}\n\t\t\t<\/style><div class=\"wpforms-container wpforms-container-full wpforms-render-modern\" id=\"wpforms-441\"><form id=\"wpforms-form-441\" class=\"wpforms-validate wpforms-form wpforms-ajax-form\" data-formid=\"441\" method=\"post\" enctype=\"multipart\/form-data\" action=\"\/index.php\/wp-json\/wp\/v2\/posts\/1012\" data-token=\"ca8045e64c2a059ef8c903571d51209a\" data-token-time=\"1775605094\"><noscript class=\"wpforms-error-noscript\">Please enable JavaScript in your browser to complete this form.<\/noscript><div id=\"wpforms-error-noscript\" style=\"display: none;\">Please enable JavaScript in your browser to complete this form.<\/div><div class=\"wpforms-field-container\"><div id=\"wpforms-441-field_0-container\" class=\"wpforms-field wpforms-field-name\" data-field-id=\"0\"><fieldset><legend class=\"wpforms-field-label\">Name <span class=\"wpforms-required-label\" aria-hidden=\"true\">*<\/span><\/legend><div class=\"wpforms-field-row wpforms-field-medium\"><div class=\"wpforms-field-row-block wpforms-first wpforms-one-half\"><input type=\"text\" id=\"wpforms-441-field_0\" class=\"wpforms-field-name-first wpforms-field-required\" name=\"wpforms[fields][0][first]\" placeholder=\"First Name*\" aria-errormessage=\"wpforms-441-field_0-error\" required><label for=\"wpforms-441-field_0\" class=\"wpforms-field-sublabel after wpforms-sublabel-hide\">First<\/label><\/div><div class=\"wpforms-field-row-block wpforms-one-half\"><input type=\"text\" id=\"wpforms-441-field_0-last\" class=\"wpforms-field-name-last wpforms-field-required\" name=\"wpforms[fields][0][last]\" placeholder=\"Last Name*\" aria-errormessage=\"wpforms-441-field_0-last-error\" required><label for=\"wpforms-441-field_0-last\" class=\"wpforms-field-sublabel after wpforms-sublabel-hide\">Last<\/label><\/div><\/div><\/fieldset><\/div><div id=\"wpforms-441-field_1-container\" class=\"wpforms-field wpforms-field-email\" data-field-id=\"1\"><label class=\"wpforms-field-label\" for=\"wpforms-441-field_1\">Email <span class=\"wpforms-required-label\" aria-hidden=\"true\">*<\/span><\/label><input type=\"email\" id=\"wpforms-441-field_1\" class=\"wpforms-field-medium wpforms-field-required\" name=\"wpforms[fields][1]\" spellcheck=\"false\" aria-errormessage=\"wpforms-441-field_1-error\" required><\/div><div id=\"wpforms-441-field_2-container\" class=\"wpforms-field wpforms-field-textarea\" data-field-id=\"2\"><label class=\"wpforms-field-label\" for=\"wpforms-441-field_2\">Comment or Message<\/label><textarea id=\"wpforms-441-field_2\" class=\"wpforms-field-medium\" name=\"wpforms[fields][2]\" aria-errormessage=\"wpforms-441-field_2-error\" ><\/textarea><\/div><\/div><!-- .wpforms-field-container --><div class=\"wpforms-submit-container\" ><input type=\"hidden\" name=\"wpforms[id]\" value=\"441\"><input type=\"hidden\" name=\"page_title\" value=\"\"><input type=\"hidden\" name=\"page_url\" value=\"https:\/\/salestrategy.consulting\/index.php\/wp-json\/wp\/v2\/posts\/1012\"><input type=\"hidden\" name=\"url_referer\" value=\"\"><button type=\"submit\" name=\"wpforms[submit]\" id=\"wpforms-submit-441\" class=\"wpforms-submit\" data-alt-text=\"Sending...\" data-submit-text=\"Send\" aria-live=\"assertive\" value=\"wpforms-submit\">Send<\/button><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/salestrategy.consulting\/wp-content\/plugins\/wpforms-lite\/assets\/images\/submit-spin.svg\" class=\"wpforms-submit-spinner\" style=\"display: none;\" width=\"26\" height=\"26\" alt=\"Loading\"><\/div><\/form><\/div>  <!-- .wpforms-container -->[\/vc_column_inner][vc_column_inner width=&#8221;1\/6&#8243;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_column_text] The correct selling price can be the difference between a business that works hard and one that actually makes money. I\u2019ve seen this situation many times in small businesses across Philadelphia. The restaurant is full.The beauty salon is fully booked.The store is constantly selling. But at the end of the month, the owner says<\/p>\n","protected":false},"author":1,"featured_media":1010,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,36,826],"tags":[949,935,953,456,937,951,939,711,947,943,941,127,945,413,955],"class_list":["post-1012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-blog-en","category-marketing-sales","tag-business-profitability","tag-correct-selling-price","tag-entrepreneurship-philadelphia","tag-latino-entrepreneurs","tag-philadelphia-small-business","tag-pricing-decisions","tag-pricing-mistakes","tag-pricing-strategy","tag-profit-margins","tag-restaurant-pricing","tag-retail-pricing","tag-sales-strategy","tag-service-pricing","tag-small-business-growth","tag-small-business-pricing-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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