A fundamental rule for pricing success is simple but often overlooked: when customers rarely complain about your prices, they're probably too low. Many businesses struggle with cash flow not because of poor operations but because their pricing strategy doesn't support sustainable margins.

Regularly analyze your gross profit margins compared to industry standards. Understanding your true costs is crucial - many businesses unknowingly price their products or services below cost because they haven't accurately calculated all components of their cost structure. This includes not just direct materials and labor, but also overhead allocation and hidden costs like warranty claims or customer service.

Consider implementing value-based pricing rather than cost-plus pricing. This approach focuses on the value your product or service provides to customers rather than just marking up your costs. It often allows for higher margins while still providing excellent customer value.

If you're doing your own selling, be cautious about giving too many discounts or credits. Sometimes having employees handle pricing can lead to better margin management as they're often more objective about maintaining price integrity. Implement clear pricing policies and approval processes for any discounts.

Regular review of your pricing strategy is essential. Markets change, costs fluctuate, and customer needs evolve. Your pricing should reflect these changes while maintaining healthy margins. Remember, sustainable cash flow requires profitable operations - you can't discount your way to success.