October 10

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Are You Undercharging? Here’s How to Tell!

Many people are undercharging for their services and products... and it's holding them back in their life and in their business. 

Let's explore if that's the case for you and if so, why and how you should stop doing it.

Charging an appropriate amount for your work might be one of the best things you can do to create more abundance in your life!

How to tell if you are undercharging:

Here are 9 warning signs that you are charging too little: 

WArning signs

  • You haven't raised your prices in years (not even to adjust for inflation).
  • Your prices are significantly lower than other people in your industry.
  • You have improved your services (for instance, through experience) or products (for instance, through updates) without ever increasing your prices. 
  • You would like to charge more but you feel guilty/uncomfortable about doing so. 
  • Your prices feel too low for you.
  • You have been told (more than once) that your prices are too low.
  • You sometimes feel resentful towards your customers. 
  • You are working a lot without improving your financial situation.
  • You have a wait list for your services.

YOUR RESULT

If you said "yes" to two or more points above, it might be time to raise your prices.

(And even if you didn't say "yes" to two or more points above, you might want to adjust your prices for inflation.)

Why you should stop undercharging

Alright, let's assume you have concluded that you are undercharging. Here are just some reasons why you should stop doing that (feel free to add your own reasons to the list):

Advantages of charging appropriate prices

  • Raising your prices means you need to work less to bring in the same amount of income. 
  • Clients sometimes respect entrepreneurs more who charge an appropriate amount for their products and services.    
  • Sometimes, if people charge overly low prices because of their own unresolved issues around money, it can attract problematic/challenging clients.
  • You will feel better about the work you put into something if you are adequately compensated for your time.

With that said, let's explore....

How to increase your prices

While there are many different ways to increase your prices (increase them only for new or also for existing clients, having a huge increase vs. a small one for inflation, etc.), we can differentiate between two basic approaches: 

The minimum approach

  • Raise rates for new clients. 
  • At a minimum, adjust your new rates for inflation. You might also want to increase your rates more than that. 
  • If you feel very uncomfortable raising your rates, you can reduce what's included in it. For instance, instead of a 60-minute session, you might charge the same price for 45 minutes. 

The full approach

  • Raise rates both for new and for existing clients.
  • For new clients, you can raise the rates immediately, while you might like to give your existing clients an adjustment period. 
  • If an existing client is very unhappy with the price increase, you can always grandfather them into the old price if you want to keep them. 

Often, people feel bad about charging an appropriate amount for their services. In some ways, this is similar to how many people feel about marketing. 

However, your prices should be a win-win for both you and the customer. If you find yourself doing too much for too little pay, that's not a mutually beneficially relationship.

Also, there is nothing inherently ethical or spiritual about undercharging for your services. In fact, charging higher fees allows you to be more generous with people in need. 

So, do yourself a favor and stop undercharging!

Additional resources

If you need more help with marketing and monetizing your products and services, I recommend this very affordable masterclass.

Marketing and Monetization 101 Masterclass

Join Now!

 Click Here Now

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