Pricing Your Services: How to Know If You’re Charging Too Little and What to Do About It

by Jul 1, 2025Advice, Tips & How-To

Pricing your services isn’t just about numbers on a page. It’s about alignment. Alignment with your value, your positioning, your audience, and your energy.

One of the most common questions I hear from business owners isn’t “how do I raise my prices?”

It’s more subtle than that. It’s usually:

“How do I know if I’m charging enough?”

And that question, on its surface, seems tactical, but underneath? It’s layered with fear, hesitation, and self-doubt.  It’s rarely just a money problem.

It’s a confidence problem.

The Real Reason You’re Questioning Your Prices

When someone asks me if their prices are too high, 99% of the time my answer is simple:
You’re not charging enough.

That hesitation you feel when quoting your rate? That urge to offer a discount “just in case”? That internal flinch when someone asks for your pricing?

Those are clues. Not necessarily that your rate is wrong but that you don’t believe in it yet.

And if you don’t believe in it, your potential clients won’t either.

A Lesson I Learned From the Film Industry

Before I stepped into business strategy and consulting, I worked in the film industry. I had a business partner—brilliant, seasoned, high-performing who told me something I’ll never forget:

“I charged $500 a day for years. Everyone got a top-tier product for bottom-tier pricing and I regret it.”

Why? Because even though he was one of the best at what he did, he never gave himself permission to raise his rates until it was long overdue. And by then, he was frustrated about the amount of money he had missed out on for such a superb product.

When I started out, I picked that same rate: $500 a day. It felt safe. Familiar. Reasonable. But I quickly realized something was off.

I was delivering more than I was charging for and I knew it.

So I asked him another question: How did you know when it was time to raise your price?

His response was a mix of practical and personal:
Ask yourself what the market can handle. And whether you believe you’re worth more.”

Why Pricing Problems Aren’t Really About Pricing

You can study every competitor, run 10 surveys, and reverse-engineer every pricing model out there, but if your pricing doesn’t fit within your broader strategy, it won’t work.

When pricing misalignment happens, it usually falls into one of two traps:

1. You’re Undercharging and Overcompensating

This often shows up as:

  • Working with lots of clients, but still not hitting your revenue goals
  • Feeling constantly overwhelmed but unable to afford support
  • Attracting clients who push your boundaries or undervalue your time

And while it might feel like “playing it safe,” underpricing often invites the exact situations you’re trying to avoid.

2. You’re Overcharging Without Proper Positioning

On the other hand, setting a high price without the strategic foundation to support it can backfire:

  • People hesitate or ghost after hearing your rate
  • You over-explain the deliverables instead of the benefits and outcomes
  • You’re unsure the offer actually matches the number you’re quoting

Why We Get Pricing Wrong Even If We “Know Better”

Here’s the thing: most people don’t price based on strategy. They price based on fear, assumptions, or old habits.

Here are the most common traps I see:

  • Fear of rejection: You’re worried someone will say no, so you discount preemptively.

  • Comparison without context: You mirror what others charge without knowing how their offers or overhead compare to yours.

  • Equating time with value: You base your price on how fast you work, not how much value you deliver.

  • Lack of strategic review: You haven’t updated your pricing in years—even though your skill, audience, or results have changed.

  • Focusing on features, not benefits: You price based on how many calls are included, not what those calls help your client accomplish.

And perhaps the most subtle issue?

You’re still making exceptions, offering discounts, or second-guessing yourself because you’re not fully standing behind your price.

So… How Do You Find the “Right” Price?

There’s no universal calculator. But there is a process I use with my clients that helps take the guesswork (and guilt) out of pricing.

1. Start With Market Awareness

→ Understand what others are charging while also considering:

  • Who they serve
  • What results they promise
  • How long they’ve been doing it
  • How their offer is positioned

2. Identify Your Differentiators

→ Ask:

  • What makes my delivery unique?
  • How does my process or lens elevate the experience?
  • What results do clients get that they don’t get elsewhere?

These are all value markers and they should influence your price.

3. Align With the Right Buyer

Your pricing should reflect not just what you’re offering, but who you’re offering it to. Someone looking for hand-holding expects to pay differently than someone just needing a framework.

4. Gut-Check Your Confidence

This is the part most people skip.

→ Ask yourself:

  1. Can I say this price without flinching?
  2. Can I send this proposal and not immediately regret it?
  3. Am I excited to deliver what I’ve promised at this price?

     

    If not, something’s off. And that doesn’t always mean the price is wrong. It might mean the offer needs to be repackaged. Or your own belief in the value needs to be recalibrated.

Pricing Is an Invitation, Not a Defense

Your pricing doesn’t need to be justified in a spreadsheet or defended in a debate. It needs to invite the right clients, support your energy, and reflect the quality and depth of what you offer.

If your current rates aren’t doing that, it’s time to step back and realign.

 

Ready to Audit Your Pricing Strategy?

In my Business Strategy Alignment Assessment, we’ll walk through your current offer suite, pricing structure, and positioning—so you can stop second-guessing and start pricing with intention.

We’ll cover:

Let’s make sure your prices match the value and the future you’re building.