I recently went to a seminar by Bigger Brighter Bolder on why you should double your prices which made me realise I was seriously undercharging and that I should align my prices with the market rate. I will ease myself into this on January 1 2014!
George Swift from BBB pointed out that a lot of new business owners compete on price from the outset but that rising prices actually is a good thing for everyone. Higher prices means that you work harder, produce a better product and up your game.
George describes it much better than I can and I highly recommend this article here to anyone with a small business: www.businesszone.co.uk/topic/finances/why-you-need-double-your-prices/54251