How to Make More Money in Business

Want to increase your business profits without just working harder?
Here are three proven ways NZ business owners can improve profitability with clarity and confidence.

1. Charge Based on Value, Not Just Cost

If you’re still pricing based on cost-plus – think again.
While it’s common to tally up materials, labour, and a margin, this method can cap your earnings and ignore your true value.

Instead, ask: What is this worth to the customer? Not just what it cost you.

This is known as value-based pricing, and it allows you to position your offer around outcomes, not inputs. If you’re confident in the results your service delivers, price accordingly.

Many business owners undervalue themselves because they don’t consider the transformation their work enables.

One client raised prices by just 10%. The fear was customer pushback – but it never came. The value was clear, and profit improved without adding workload.

2. Discount Carefully – If at All

Discounts may feel like an easy way to win work, but they’re often a fast track to profit erosion.

A 10% discount on a 30% margin means you’d need over 50% more sales just to maintain the same profit. Here’s why:

Item	Original	10% Discount	Extra Sales Needed
Price	$100	$90	$135
Cost	$70	$70	$105
Profit	$30	$20	$30
GP %	30%	22.2%	22.2%

Before offering a discount, ask: How much more do I need to sell just to break even?
If the answer isn’t worth it – focus on value instead.

3. Focus on the Most Profitable Sales

Many owners don’t know which of their sales are most profitable – and that’s a major risk to sustainability.

Use This 3-Step Method:

Step 1:
Use an accounting system (e.g. Xero, MYOB) that breaks down costs by product, labour type, or project.
This will reveal what’s actually generating profit.

Step 2:
Create a routine job or product-level profit report.
Many SMEs discover they’re growing revenue in areas that barely cover time or delivery costs.

Step 3:
Use insights to adjust pricing, upsell profitable services, and drop low-margin work.
This is how we help clients make smarter decisions faster.

If you’re unsure where your profit is coming from – you’re likely leaving money on the table.

What’s the Best Way to Start?

To increase profit without raising prices across the board, combine these three levers:

• Price for value
  
  
• Protect your margin
  
  
• Prioritise high-margin work
  
  

It’s not about working longer hours – it’s about working smarter using real numbers and a clearer strategy.

Client Success: WordsWorth Interpreting

“Oxygen8 helped me make sense of my ideas, formalise my systems, and lead with confidence. I finally feel like I’m in control – and it’s a huge relief.”
– WordsWorth Interpreting