Your Pricing Might Look Fine—But Is It Profitable?
Melissa Morris
Streamline your agency, boost profits, and finally reclaim your time — without hiring more or working harder.
Quick question:
When’s the last time you looked at your service pricing and thought, “Yup, those numbers are spot-on. Everything we offer is perfectly profitable.”
If your answer is never or uh, what do you mean by profitable?—you’re not alone.
Most agencies price their services based on some combination of:
And hey, that might work… temporarily. But if you’ve ever wondered why your team is swamped and your bank account doesn’t reflect it, your pricing might be the root of the problem.
Let’s talk about how to know if your services are actually priced for profitability—not just cash flow.
First: Do You Know Your Delivery Margin?
Forget revenue for a second. What really matters is how much it costs you to deliver your services.
If it costs $5,500 in team time to deliver a $6,000 package… you’re not really making $500. You’re probably losing money once overhead kicks in.
Second: Are Your Projects Consistent or Customized?
Here’s the truth: bespoke work is expensive.
The more “custom” your deliverables, the harder they are to scope, price, and staff consistently. That’s where agencies tend to leak margin—slowly, subtly, and repeatedly.
Productizing doesn’t mean making your services boring. It means making them repeatable, predictable, and easier to price in a way that protects your bottom line.
Third: Are You Adjusting Pricing Based on Data (Not Vibes)?
If you haven’t adjusted your pricing in the last year—but your team is working more hours, your tools cost more, and your scope keeps creeping—then it’s time to reevaluate.
Your pricing should evolve with your agency. Not just because your overhead changes, but because your value increases, too.
A Quick Litmus Test:
If your team says things like:
That’s your cue. Your services are likely underpriced—or under-scoped.
What To Do About It
Because guess what? Your clients want good work. And good work requires sustainable pricing.
Final Thought
Your services shouldn’t just sound good on a sales call. They should hold up under delivery—and leave enough margin for your team to breathe, your business to grow, and you to not dread payroll every month.
If you’re not sure where the leaks are or how to fix them, I’d love to help you dig in.
Talk soon,
-Melissa
Owner & Principal Consultant
Agency Authority
P.S. – If your agency is booked out but the profits don’t match, it’s time to take a closer look at your pricing. Schedule a call with me and let’s figure out what’s really going on behind those numbers—no spreadsheets required (unless you’re into that sort of thing).
MELISSA Q&A
Each week, Melissa will answer common questions she receives from agency owners. Have a question for Melissa? Just send a DM and ask away!
This week's question:
How can I create a communication rhythm that keeps clients informed and happy?
The Invisible Time Suck: Why Your Agency Is Spending More Hours Than Necessary on Non-Billable Work
Your agency’s team is working hard—but are they working on the right things? If you’re constantly busy but not seeing the revenue to match, non-billable work might be quietly draining your profits. In this blog, we break down the hidden time sucks—like excessive meetings, client email overload, and custom proposals—and show you exactly how to fix them. If you’re ready to reclaim your team’s time (and your sanity), this is a must-read.
Consulting Spots
Agency Authority currently has space for two consulting clients. Interested in getting help for your agency? Want to learn how we can work together and help your business grow by alleviating common bottlenecks, locking down your operations, and creating an agency that works for you, your team, and your clients?
Take Our Quiz!
Did you know we have a new quiz available to help you as an agency owner?
It’s called: What’s Blocking You From Scaling Your Agency?
I encourage you to take a couple of minutes and see what might be holding your agency back from reaching that next level you want and deserve!
Connect with Us!
Are we connected on LinkedIn? If not, just click here, and let’s get connected!
QUOTE OF THE WEEK