AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Price from your full cost upwards, not from what the shop next door charges. Add up the direct cost of each item or job, add a fair share of overheads such as rent, diesel, data and wages, then add the profit margin you need, and check the result against what customers will pay. Review prices on a fixed schedule because input costs in Nigeria change quickly.
Step 1: know the full cost of one unit
Most pricing mistakes come from counting only the obvious cost. A plate of jollof rice is not just rice, oil and chicken.
- Direct costs
- Materials or stock used in that item or job: ingredients, fabric, parts, packaging.
- Direct labour
- Time spent by you or staff on that item, valued at what you pay for that time.
- Overheads
- Rent, power (grid and generator), data, transport, bank and payment charges, repairs, marketing, your own pay.
- Losses
- Spoilage, breakage, unpaid invoices and returns.
To share overheads, add up a month's overheads and divide by the number of units or hours you sell in a normal month.
Step 2: add a margin on purpose
Margin is the profit you keep from each sale, shown as a share of the selling price. Markup is profit as a share of cost. They are different numbers: a 50% markup on cost is a 33% margin on price. Decide which you are using and stick to it.
Worked example: a small eatery
| Item (per plate, example) | Amount |
|---|---|
| Ingredients and pack | ₦1,450 |
| Cook's time (share of wages) | ₦250 |
| Overheads share (₦720,000 a month ÷ 2,400 plates) | ₦300 |
| Allowance for waste (5% of ingredients) | ₦70 |
| Full cost | ₦2,070 |
| Target margin 30%: price = cost ÷ (1 − 0.30) | ₦2,957 |
| Rounded menu price | ₦3,000 |
Example only. Selling at ₦2,500 because "that's what others charge" would leave about ₦430 per plate, roughly 17%, before any price rise from suppliers.
Step 3: check the market, then decide
- Look at three or four comparable sellers and what they include (portion, delivery, warranty, speed).
- If your cost-based price is higher, decide what justifies it: quality, convenience, reliability, after-sales service.
- If it is much lower, you may be underpricing. Customers often read low prices as low quality.
- Offer tiers (basic, standard, premium) so price-sensitive customers have an option without cutting your main price.
Step 4: build in reviews for inflation
Input prices in Nigeria can move within weeks. Set a rule so reviews are routine rather than emergencies.
- Track your top ten input costs on a sheet each month.
- Recalculate full cost per unit monthly.
- Reprice when full cost has moved by more than an agreed amount, for example 5%.
- Give regular customers notice of changes and say why in plain words.
- For quotes and contracts, state how long the price is valid and include a review clause for longer jobs.
Tax and payment costs in your price
VAT
If your business is above the ₦100 million turnover threshold or has opted in, you charge 7.5% VAT on taxable supplies. Decide whether your prices are VAT-inclusive (VAT comes out of your margin) or plus VAT, and show it clearly. See does a small business have to charge VAT.
Payment charges and credit
Card, POS and gateway charges are a real cost per sale. Compare options in payment gateway fees in Nigeria. If you give customers time to pay, the wait has a cost too; see getting paid on time.
Pricing services by the hour or by the job
For services, start from the income you need per month, divide by the hours you can realistically bill (not all working hours), and add materials and travel per job. Fixed-price quotes protect clients from surprises but you carry the risk of overruns, so allow for it.
Example: an hourly rate for a service
Example only. A graphic designer wants ₦600,000 a month to cover her pay, software, data and power. She can realistically bill 80 hours a month once admin and sales time are removed. ₦600,000 ÷ 80 = ₦7,500 an hour as her floor. She adds a 20% margin for slow months and quotes ₦9,000 an hour, or a fixed fee based on estimated hours plus a contingency for revisions.
Signs your prices are too low
- You are always busy but never have cash.
- Customers rarely question the price.
- A small rise in input costs wipes out your profit.
- You cannot afford to pay yourself regularly.
Raising prices without losing customers
Explain the change briefly, give notice to regular customers, and consider keeping one entry-level option at the old price. Round to clean figures, and avoid frequent small rises, which irritate more than one planned review. Watch sales for a month after any change before deciding whether it worked.
Whatever method you use, write your pricing workings down so that staff quote consistently and you can see later why each price was set.
Where Pryme fits
Accurate costs come from accurate records. A Pryme Business Account's Finance agent can prepare monthly cost summaries by category, so price reviews start from real numbers; a person reviews and approves. If you accept payment by bank-transfer checkout, the charge is 0.5% capped at ₦2,000, which you can build into your price.
Questions people ask
How do I calculate selling price in Nigeria?
Add direct costs, labour and a share of overheads to get full cost per unit, then divide by one minus your target margin. For a 30% margin, divide cost by 0.7.
What is a good profit margin for a small business in Nigeria?
It varies widely by sector. Work out what margin covers your overheads, your pay and a buffer, and test it against the market.
How often should I increase my prices?
Review costs monthly and reprice when full cost moves by more than a set amount, rather than waiting for a crisis.
Should my prices include VAT?
Only VAT-registered businesses charge VAT. If you are registered, state clearly whether prices include 7.5% VAT or are plus VAT.
Sources
- PwC Nigeria: The Nigeria Tax Reform Acts, top 20 changes to know · accessed Oct 2026
- Govt highlights 50 tax reliefs and exemptions for low-income earners and SMEs (AllAfrica) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (Gazette copy) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.