10 Clues You Are Undercharging

1. You feel obligated, rather than inspired, to do the work needed to keep your business running.
2. You feel resentment against past projects because the amount of work completed didn’t make it worth the money you made.
3. Your prices haven’t changed in years.
4. You are charging lower than others in your industry at the same level.
5. You are always willing to go below a competitor’s quoted fee to get the job.
6. Your marketing strategy is rooted in being the cheapest.
7. You win most of the projects you bid for.
8. You only take on small clients.
9. You struggle to discuss money with your clients.
10. You are busy, yet there is never any money in the bank.

If any or multiple of these apply to you, then it is time to raise your prices. As a business owner, you deserve to earn a reasonable salary. I like to determine if I am paying myself fairly by noting what roles I play in my business and how one would translate that to a position at a traditional 9-5 job. Use resources like Indeed or Glassdoor to figure out the average annual income you would take home if you were to do that job for another company. You should be paying yourself something in line with the sum of the annual positions of the roles you play. This practice will also ensure that you have enough revenue to grow your team which is essential if you want your business to grow. Attracting talented and productive individuals to work with you costs money, so you want to ensure your pricing accommodates this so you are not forced to remain a solopreneur forever.

Additionally, many forget to take into account all of the money you spend on monthly subscriptions that are necessary to keep your business running. Think about your email list, booking platform, social media scheduler, website domain and hosting, cloud storage for files, computer programs... the list goes on. These seemingly hidden costs can quickly eat into your profits, resulting in some of the discouraging feelings stated in the list above.

Moving Past The Fear of Losing Clients

The biggest culprit that holds people back from placing a luxury price tag on their product or service is the fear that sales and bookings will nosedive post price increase. Something to remember is that if you were to double your prices today and your inquiries and bookings dropped in half, you’d be making the same revenue and working half the time. That is a win. Further, most find that price increases do not decrease the number of sales you are getting. If you are providing genuine value and communicating that well, then people are willing to pay. You need to take control of your brand’s narrative and have the courage to ask for what you are worth, and the people that cherish your offer will find you.

This is a segment of a detailed article on the Atelier Oluwatosin site. Click here for the full piece.