When it comes to running a service-based business, one of the biggest struggles is pricing. It’s that delicate dance between staying competitive in your industry and charging what your work is truly worth. Many entrepreneurs find themselves stuck in this tug-of-war, unsure whether to follow market trends, compare themselves to others, or just throw out a number and hope it sticks.
Here’s the truth: Pricing isn’t just about numbers. It’s about identity.
I know this firsthand because I’ve been there. I used to wrestle with pricing, trying to find that sweet spot where I felt confident but not overreaching, fair but not undervalued. It wasn’t until I truly understood my craft and recognized the value, I bring that my mindset around pricing shifted.
And let me be clear: This isn’t the kind of lesson they teach in business school.
In the real world, pricing your services is as much about self-awareness as it is about strategy. You have to know where you're going, but even more importantly, you have to understand who you are right now and who you’re becoming.
So, how do you break down pricing in a way that actually fuels growth? Here’s my approach:
1. Know Your Craft, Inside and Out
One of the main reasons people struggle with pricing is because they haven’t fully matured in their craft. When you’re unsure of your expertise, it’s easy to undercharge because deep down, you’re questioning if you’re worth it.
But here’s the thing: Confidence comes from competence.
Invest time in mastering your skills. The more you grow, the easier it becomes to articulate your value—and that clarity translates directly into your pricing.
2. Understand the Difference Between Cost and Value
Pricing isn’t just about covering costs plus a little profit. It’s about the value you deliver. Ask yourself:
What transformation do my clients experience because of my work?
How does my service save them time, money, or stress?
What unique perspective or process do I bring that no one else does?
When you price based on value, you shift the conversation from “How much does this cost?” to “What is this worth to the client?”
3. Stop Playing the Comparison Game
It’s tempting to look at competitors and think, “Well, if they’re charging X, I should charge around the same.” But comparison-based pricing is a race to the bottom. You’re not building your business to be a carbon copy of someone else’s.
Your value isn’t determined by what others charge.
Focus on your unique selling proposition (USP). What makes your service distinct? THAT is what justifies your price, not the going rate in the market.
4. Pricing Reflects Positioning
The price you set tells the market how to perceive you. Think of luxury brands. They don’t just sell products; they sell status, exclusivity, and experience.
Now, I’m not saying you need to slap on a premium price tag just for the sake of it. But understand this: If you price like a commodity, you’ll be treated like one.
Your pricing should reflect the level of transformation you provide, the expertise you bring, and the experience your clients receive.
5. Be Willing to Lose Clients Who Aren’t Your Ideal Fit
One of the scariest parts of pricing is the fear of losing potential clients. But here’s the hard truth: Not every client is meant for you.
If someone only sees the price and not the value, they’re not your ideal client. The goal isn’t to work with everyone; it’s to work with the right people who respect and understand the value you provide.
6. Revisit and Adjust Regularly
Your pricing should evolve as you do. As your skills grow, your client base expands, and your expertise deepens, revisit your rates. Don’t let fear or imposter syndrome keep you locked into pricing that no longer reflects your value.
Your growth deserves to be compensated. Period.
Final Thoughts:
Pricing isn’t a one-size-fits-all formula. It’s a reflection of your growth, your value, and your vision. If you’re struggling with it, take a step back and ask yourself:
Do I fully understand the value I bring?
Am I confident in my craft?
Am I pricing for where I am or for where I’m going?
You deserve to be paid for the transformation you provide, not just the hours you work. So stand tall, price with confidence, and remember—you are worth every penny.
Erington Boyd, CEO & Founder
The Black Diamond Accounting Group
She Builds, She Leads, She Owns - Guiding women to success!
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