Do you ever feel like you work A LOT, but when you look at the numbers, you’re not sure where it all went? That’s an unfortunate side effect of only focusing on “increasing sales.” It’s a bit deceptive because we’ve been told more sales means more money. Yet, if you’re not selling with the right pricing model, more sales doesn’t mean much of anything except more burnout. This is among a few signs you’re undercharging for your offers, but the good news is, the fixes are fairly straightforward!
After all, didn’t you start your business for time flexibility and financial freedom? When we undervalue and undercharge for our services or products, those two goals become distant hopes. We get caught up in all the details of running the business and keeping our head above water that there’s no margin leftover for growing your revenue or having time away from work.
So, if you’re stuck in the weeds of work and don’t feel like you’re hitting all of your financial goals (… or any), keep reading to learn the 3 signs you’re undercharging—and what to do about it.
Ooooh, as a sales and operations consultant, this one hurts me to my core. BUT, at the same time, I get how it happens. You work nonstop finding new clients and you keep investing in courses, coaches, branding, and support. It’s not that you’re NOT putting in the effort and the work. It’s that your business expenses are equal to or more than your revenue. And that’s a problem.
I have seen so many entrepreneurs face this exact problem. They spend more than 40 hours a week working themselves into the ground, with not much to show for it financially. And it can be a challenging shift to fix it. You want to work less and make more, but that means some tough conversations and maybe a restructuring of your pricing are in order. More on that in just a bit!
I see a lot of people setting their prices low in order to gain more leads and sales traction, but in turn, they have to work around the clock in order to serve and satisfy the amount of clients or customers they’ve obtained. For most people, working all the time and not having a life outside of their career isn’t the goal… but it can happen so easily.
However, if you price your offers fairly and objectively higher, (aka, NOT budget rates just to get more and more buyers through the door), then you’ll be able to make more money by working less. It’s called working smarter, not harder, and I am a BIG fan.
If you send off your pricing information and 9 times out of 10, your prospects accept, your pricing is too low. Period! Business is about attraction and repelling. When you repel the wrong customers because your pricing is too high for their budget, it leaves space for the RIGHT people to find you. The ones who value what you’re providing and are willing (and happy!) to pay your more premium rates.
Of course, the first step to stop undercharging is reviewing your pricing and seeing what you can change. Have you avoided raising your rates for 3 years because it feels uncomfortable? Are you charging lower than market value in the hopes to sell more, but it’s burning you out?
Take a look at things like what your competitors charge, what your expenses are, and the baseline you need to make in order to be profitable. Set your rates based on those objective numbers, rather than trying to figure out your “worth.” Charging what you’re worth is a hot ticket phrase, but really, you are “worth” everything and more.
You CAN’T base business off of your worth, but you can base it off of legitimate numbers and market research. Don’t shy away from what those numbers tell you, and make the adjustments as needed. Your clients and customers will understand—at least the ones who are your ideal clients will—because they understand it’s just business. And they know the value you provide!
Usually 80% of my clients are undercharging one or more of their services or products when I begin working with them, and it happens so easily. We are the first to discount ourselves and our offers, but I promise you, it is important and valid to charge the RIGHT prices in order to create the life you desire.
I want for you to become absolutely obsessed with profitability. Not *barely* profitable, but actually hitting your targets and goals you set for yourself, not worrying about finances, and having some leftover for your personal money goals (investing, saving, etc.). Fixing your pricing doesn’t always only mean raising your rates—although that’s an important aspect.
Start with asking yourself:
The idea is to pay yourself, to ensure your investments back into the business are smart, and to generate revenue in more ways than simply adding new clients or charging more for existing clients. Small shifts can lead to a sustainable, profitable, and long-lasting business.
We offer 1-day business intensives to review your numbers and find opportunities to grow, scale, and work smarter—in other words, to make more money and have more time to live your life.