One of the biggest mistakes small business can make is competing on price. Who wants to be branded as the low price leader?
When I was consulting with small business owners, 90% of the time my first advice to them was to raise their prices. They normally looked at me in horror, but when they followed through it was the best thing they did for their business.
I don't consult anymore, but I still tell people to raise their prices all the time. All you have to do is compute the ROI and it should convince you.