Pricing your services can feel like walking a tightrope. Charge too much, and you worry about losing clients. Charge too little, and you risk working harder without seeing the financial rewards you deserve.
If this sounds familiar, you’re not alone. Many entrepreneurs, especially in creative industries like home staging, grapple with the fear of underpricing. Here’s how you can tackle this challenge head-on and confidently charge what you’re worth.
Why Women Tend to Undervalue Their Worth
For many women, underpricing isn’t just a business challenge – it’s deeply rooted in how we’re taught to think about money, work, and value.
- Cultural Conditioning: Women are often raised to be accommodating, avoid conflict, and prioritize relationships over financial gain. This can make it uncomfortable to ask for higher rates or negotiate terms.
- Discomfort with Money Discussions: Research shows that women are less likely to advocate for themselves in financial matters, often out of fear of being perceived as “greedy” or “difficult.”
- Imposter Syndrome: Women are more likely to doubt their expertise or feel they need to “prove” their worth before asking for what they deserve.
This mindset frequently leads to undervaluing our work and charging less than we’re worth. But here’s the truth: you can’t build a sustainable business by underpricing.
The first step to overcoming this is understanding that pricing isn’t personal—it’s about the value you bring to your clients.
Why Do We Fear Underpricing?
Let’s start with the root of the issue.
- Fear of Losing Clients: It’s natural to worry that higher prices might scare off potential clients. But here’s the truth: clients who value quality often associate higher prices with higher value.
- Self-Doubt: A lack of confidence in your skills or the value you bring to the table can make you hesitant to charge your worth.
- Lack of Data: Without a clear understanding of your costs and profitability, it’s easy to second-guess yourself.
Sound familiar? Don’t worry – this fear is something you can overcome with the right strategies.
Step 1: Know Your Costs
One of the easiest ways to build pricing confidence is to base your rates on data, not emotion. Start by calculating your true costs:
- Fixed Costs: Rent, insurance, utilities, software subscriptions, and other consistent expenses.
- Variable Costs: Inventory, subcontractors, and labor costs.
- Your Time: Include not just billable hours but also non-billable tasks like marketing, admin, and networking.
With this information, you can calculate the minimum amount you need to charge to cover expenses and ensure profitability.
Step 2: Use Tools to Simplify Pricing
One of the biggest breakthroughs I’ve seen with my clients is using a pricing calculator. This tool takes the guesswork out of pricing by showing exactly what you need to charge to cover your costs and achieve your desired profit margin.
For example, one of my clients, Liz, thought her jobs were profitable – until we ran her numbers through the calculator. We discovered she was losing money on every job because she wasn’t accounting for overhead like rent, insurance, and inventory investments. After adjusting her rates, Liz transformed her business and started turning a real profit.
Ask yourself:
- Are you including all your costs in your pricing?
- Have you considered how many times an item needs to be rented before it pays for itself?
Profit starts only after an item has covered its cost, so make sure your rates reflect these realities.
Liz was busy – she was getting lots of jobs, and money was coming in. The trouble was, she didn’t realize that the money was flowing out faster than it was flowing in, and the company wouldn’t be able to survive if she continued this.
Step 3: Shift Your Mindset
Many of us undervalue our services because we’re afraid of rejection or feel uncomfortable asking for more. But pricing isn’t just about what you’re charging – it’s about the value you bring.
- Focus on Outcomes: Clients pay for the results you deliver, not just the hours you work. Highlight the benefits of your services, like faster home sales or increased sale prices, and relate those benefits to how it impacts the clients.
- Embrace Selectivity: If every client is saying “yes” without hesitation, it might be a sign that you’re undercharging. The right clients will recognize your worth and happily invest in your services.
- Reframe Rejection: Hearing “no” is not failure – it’s feedback. “No” doesn’t mean “I don’t want to use your services”, it means they don’t have enough information to confidently move forward with you. And “if you’re not hearing no, you’re not asking for enough.”
Step 4: Build Pricing Confidence
- Start with New Clients: Increase your rates for new clients and inquiries immediately, and work to increase your loyal clients’ fees over time.
- Practice Presenting Your Rates: Confidence is key when discussing pricing. Avoid apologizing or justifying your rates—state them clearly and focus on the value you provide.
- Track Your Results: Seeing how changes impact your profitability can reinforce your confidence in your pricing decisions.
Step 5: Reassess Regularly
Your pricing isn’t set in stone. As your business grows and your expertise increases, your rates should reflect that. Make it a habit to revisit your pricing every 6–12 months, especially if your costs or services have changed.
The Bottom Line
Underpricing isn’t just about the numbers – it’s about your mindset and how you communicate your value. By understanding your costs, using the right tools, and shifting your perspective, you can overcome the fear of underpricing and confidently charge rates that reflect your worth.
Remember: Pricing your services correctly isn’t just about making money. It’s about running a sustainable business that supports your goals and values your expertise.
Want More Help with Pricing?
If pricing is still a struggle, check out our Staging for Profit: Master Your Pricing Strategy course, where we dive into these concepts and more. You’ll get access to our exclusive pricing calculator, actionable strategies, and a system that ensures profitability for every project.
Let’s make pricing your superpower.
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