Here’s the truth that might sting a little: if you’re underpaid, it’s your fault. You set the price. You set the tone. If you’re consistently undervalued, it’s because you’re not charging what you’re actually worth—and that stops today.
Charging premium rates isn’t just about making more money. It’s about respecting your time, your skills, and the unique value you bring to the table. When you finally raise your rates and stand by them, you’ll attract the kind of clients who actually get it—and ditch the ones who don’t.
Why Entrepreneurs Undervalue Their Time
If you’ve ever hesitated to charge more, you’re not alone. Many entrepreneurs fall into the trap of undervaluing themselves for these reasons:
- Fear of rejection: You worry clients will say no if your prices are too high.
- Imposter syndrome: You doubt your skills and wonder if you’re “good enough.”
- Market comparisons: You set your rates based on what competitors charge, not the value you provide.
- Desperation: You take whatever you can get to keep the cash flowing.
The result? Overwork, burnout, and resentment toward clients who nickel-and-dime you.
The Cost of Undervaluing Yourself
Let’s talk about what happens when you keep your rates low:
- You attract the wrong clients: People who haggle, disrespect your time, and expect the world for pennies.
- You limit your growth: Low rates mean more clients, more hours, and less time to scale your business.
- You diminish your confidence: Constantly discounting your worth eats away at your self-belief.
Underpricing isn’t just bad for your bank account—it’s bad for your business and your mindset.
How to Determine What You’re Really Worth
Setting the right price starts with understanding your value. Here’s how to do it:
1. Calculate Your Costs and Goals
- Add up your business expenses, taxes, and living costs.
- Factor in your desired profit margin and savings goals.
- Determine how many hours you can realistically work each week.
Divide your total monthly goal by your billable hours to find your minimum hourly rate.
2. Consider the Value You Provide
Ask yourself:
- What is the transformation or outcome you deliver?
- How does your work save clients time, money, or stress?
- What is the long-term impact of your services?
The greater the impact, the higher the price should be.
3. Benchmark, But Don’t Copy
Research what competitors are charging—but don’t let that dictate your worth. Instead, use it as a baseline to position yourself as the premium option.
How to Confidently Raise Your Rates
Raising your prices is scary, but it’s necessary. Here’s how to do it without losing sleep:
- Communicate the value: Clearly explain what clients get for the higher price—better results, faster delivery, more support, etc.
- Start with new clients: Implement your new rates for future projects while gradually transitioning existing clients.
- Practice saying your price: Rehearse it until it feels natural. Confidence is key when presenting your rates.
- Be willing to walk away: If a client can’t see your value, they’re not the right fit.
Signs You’re Ready to Charge More
Not sure if it’s time to raise your rates? Here are the signs:
- You’re fully booked and can’t take on more clients.
- Your current rates don’t cover your costs or reflect your expertise.
- You feel undervalued or resentful toward low-paying clients.
- Your competition charges significantly more for similar work.
If any of these sound familiar, it’s time to level up.
The Mindset Shift: From Scarcity to Abundance
Charging what you’re worth isn’t just a numbers game—it’s a mindset shift. Instead of focusing on losing clients, focus on attracting the right ones. Instead of apologizing for your rates, own them.
Remember: premium clients value premium service. The clients who balk at your rates aren’t your clients.
FAQs
Why do so many entrepreneurs struggle with pricing?
Fear, imposter syndrome, and a lack of understanding about the value they provide often lead to underpricing.
How do I justify raising my rates to clients?
Focus on the results and benefits they receive, and explain how your expertise contributes to those outcomes.
What if I lose clients after raising my rates?
That’s okay. Losing low-value clients makes room for high-value ones who respect your worth.
How do I avoid comparing myself to competitors?
Position yourself as the premium option by highlighting your unique value, skills, and experience.
Should I discount my rates for friends or family?
Only if you truly want to. Otherwise, set boundaries and treat your business like a business.
How often should I review my pricing?
At least once a year—or whenever your skills, costs, or demand significantly increase.
Conclusion: A Personal Note from Chris
When I started my entrepreneurial journey, I was terrified of charging too much. I thought, “What if they say no? What if they think I’m not worth it?” So I kept my rates low and took on clients who drained me.
Big mistake.
It took me years—and a lot of frustration—to realize that undervaluing my time was the fastest way to sabotage my success. When I finally raised my rates, something amazing happened: I started attracting clients who valued my expertise, respected my time, and paid me what I deserved.
Here’s the kicker: raising your rates isn’t just about money. It’s about self-respect. It’s about standing tall and saying, “This is what I’m worth, and I’m not settling for less.”
If you’re scared to charge more, I get it. But let me tell you this: you’re worth more than you think. Your time, skills, and energy are priceless. Start acting like it.
Raise your rates, own your value, and watch how quickly your business—and your confidence—grows. You’ve got this.
