My business provides services B2C and B2B. We we our prices years ago by looking at our competitors pricing and setting our prices at the average or slightly higher. Since then we have increased them just enough to keep up with inflation.
How can we determine if we should raise or lower prices? Unfortunately in our industry it takes 3+ months to close a sale so trial and error or AB testing would be impractical.
Are there any common signs to look for that indicate prices are too high or too low?
I have the easiest solution for you. Every new customer that comes in, try to raise your prices 2-10% and see how they react. That would tell you how to set your prices. People pay for security and peace of mind and can be willing to pay more for a good vendor, but large customers will just try to fight you on price. Part of sales is convincing them why they need you, and that your price is your price.
Ultimately you want to serve the smallest amount of customers for the most amount of money. you can provide more value to those customers than you could if you had 2x the customers.
In short, prices should always be inching up.