Charging your worth: The controversial advice that could be harming your business

Pricing your services.

It can be THE hardest thing when it comes to your business.

We’re bombarded all the time with advice about what you should and shouldn’t do.

I bet one phrase you hear all the time is to "charge your worth."

It sounds empowering, doesn’t it?

But this overused mantra could be causing you and your business more harm than good.

Let me explain…

Going all in on your business and leaving the 9-5 behind is a big step. It’s no longer a side hustle bringing in a few extra pennies. There’s no safety net. The self-doubt creeps in - "Can I afford to do this?” … “What if it doesn’t work?” … "What happens if I don’t make any sales next month?"

A lot is riding on every decision, including how you price your offerings.

I remember a conversation with my husband early in my business journey. He (understandably so!) wanted to see the numbers – the cold, hard facts that would justify whether to make a go of it or not and whether my business would bring in the income we needed.

We're encouraged not to be the cheapest, to put our prices up, to avoid trading time for money, to package up our services, and not offer discounts or give our time away for free.

There was so much pressure on how to price everything. I had to make sure I was charging enough, not just to cover costs but to turn a profit and sustain my business in the long term.

The problem with charging your worth is that it’s easy to fall into the trap of measuring your value based on how much money you make.

Yes, the wins may boost your confidence, but when you base your worth solely on validation from others, it can slowly chip away at it. Business isn’t all rosy. Ghosting, rejections, clients who say they can’t afford your rates, or those who try to haggle - before you know it, you're spiralling and questioning your self-worth, plagued by self-doubt and feelings of failure, and wondering if you should give up on your business altogether!

This minefield can lead you to undercharge and devalue what you do just to win business, which isn’t sustainable or profitable.

But how do you put a price on YOU? How much are you worth? It’s not just about WHAT you do. It’s also got to consider your skills, strengths, training and qualifications, experience, and personality, that make you brilliant at what you do.

Oh, it was much simpler in your 9-5 where someone else set your pay for you!

The answer: well, your self-worth and value as a person has nothing to do with the amount of money you can charge or earn in your business.

This charging your 'worth’ mindset can be really damaging, especially for those at the beginning of their journey. When I started my coaching business, I certainly wasn't charging what I do now. It's been a gradual process of growth and shifting my mindset. As I got more experience under my belt, honed my skills, and expanded my offerings, I slowly but steadily increased my prices.

Looking back, I realise I wouldn't have been comfortable charging premium prices right from the start. My first coaching programme was ￡350! But I felt confident to deliver at that price. I wasn’t fixating on messing up and the client wasn't feeling they paid too much for the outcomes they got. The reality is those first few clients all got great outcomes – I could have charged way more and they most likely would have paid. But charging too low to get me out of the blocks and remove the worry about cost vs my ‘performance’ was right for me.

It took time to build confidence and to truly understand the value I bring to my clients. And that's okay. That’s perfectly normal. I increased my prices from that initial ￡350 rapidly! So as long as you don’t stay stuck at rock bottom, it’s ok to remove that initial pressure. In fact, I think it has helped me get really comfortable with price increases as I develop more skills and experience. One of my first clients, who paid me around ￡400 five years ago, came back recently for another programme. This time he paid more than 5 times the cost of his first programme and didn’t question it.

Instead of fixating on charging your 'worth', I've found it more productive to focus on my money goals – not just what I want, but what I need to sustain and grow my business. It's about striking a balance between profitability and being competitive, without compromising on the value I provide.

Here’s what you can do:

• Set exciting money goals: Yes, it’s important to set specific financial goals to cover any expenses and what you need to ‘take home’ each month but it’s just as important to think about what you really want to achieve financially with your business – whether it's buying your dream home, taking a once-in-a-lifetime trip, or simply being able to treat yourself and your loved ones. These goals will give you something to work towards and keep you motivated on those tough days.
• Keep an eye on your finances: Make sure you have a good handle on your money. This doesn’t have to be complicated – whether it’s accounting software or even a simple spreadsheet to do the trick. Knowing where your money is coming from and where it’s going will help you make smarter decisions about your pricing and spending.
• Invest in personal and professional development: Allocate resources towards improving your skills, knowledge, and expertise. Not only will this increase your confidence in your abilities but will also allow you to command higher prices. Whether it's investing in more training or hiring mentors and coaches, continuous learning and self-improvement are essential if you want to charge more.
• Celebrate your wins: I say this a lot but it’s important! Don’t forget to celebrate your successes along the way, no matter how small they may seem. Whether it’s landing a new client, hitting a revenue milestone, or simply sticking to your budget for the month, take the time to pat yourself on the back and acknowledge your hard work. This will keep you motivated and remind you of how far you’ve come!

So, the next time you're tempted to heed the advice to charge your worth, pause and consider the bigger picture. Remember that pricing isn't just about numbers; it's about confidence, value, and finding the right balance for your business.