Why You’re Probably Undercharging (and How to Fix It)

If you're a small business owner or service provider, there's a good chance you're undercharging. Not because your work isn’t valuable—but because pricing is often driven by fear, guesswork, or outdated benchmarks. Here’s how to spot the signs and fix the issue so you’re actually getting paid what you’re worth.

The Subtle Signs You’re Undercharging

1. You’re Constantly Overbooked

   
   

   If your calendar is packed and you still feel like you're barely making it, that's a red flag. High demand and low profit often mean you're priced too low for the value you’re delivering.

   
   

2. Clients Rarely Push Back on Price

   
   

   If no one ever hesitates or negotiates, it’s likely because they know they’re getting a bargain. Fair pricing often invites at least a little resistance—it’s part of doing business.

   
   

3. You Feel Resentful

   
   

   If you’ve ever thought, “This isn’t worth it,” during a project, your pricing isn’t matching your energy output. Resentment is your internal pricing coach waving a red flag.

   
   

4. You’re Playing the Comparison Game

   
   

   Looking at competitors and thinking “I can’t charge that much” is dangerous. Your costs, expertise, and value are unique—your pricing should reflect that.

   
   

How to Fix It

1. Know Your Numbers

   
   

   Start by calculating your actual costs: time, tools, overhead, taxes, and desired profit margin. If your rates aren’t covering all of those, it’s time to adjust.

   
   

2. Audit Your Value

   
   

   Look at the outcomes you deliver. Do you help clients save money, reduce stress, grow their business? Price based on transformation, not just time spent.

   
   

3. Package Your Services

   
   

   Instead of charging hourly, bundle your services into flat-rate packages. This positions you as a solution provider, not just a technician.

   
   

4. Raise Your Rates (Yes, Really)

   
   

   Start with new clients, or notify existing clients well in advance. Most will understand—especially if you explain it as a way to continue delivering high-quality service.

   
   

5. Stand in Confidence

   
   

   Pricing is as much about mindset as it is about math. Back your rates with confidence, and you'll attract clients who respect your time and expertise.

   
   

Charging what you're worth isn’t greedy—it’s sustainable. It lets you serve better, grow faster, and avoid burnout.

Ready to revisit your pricing? Let’s talk.

Whether you need help calculating your rates, packaging your services, or setting up better financial systems, I’m here for it.