5 Signs You’re Underpricing Your Services (and How It’s Hurting Your Business)

I’m just gonna say it—pricing is tricky. You want to be affordable enough to bring in clients, BUT you also need to make money because life is expensive as hell (coffee prices are ridic). If your prices feel a bit off, your gut feeling might be right. If you’re underpricing your services, you’re not just missing out on money—you’re holding your business back. Now, let’s get into the five signs you’re underpricing your services and what you can do to fix it. 

Sign #1: You’re Overworked and Still Broke

If your work week looks like working til 3 in the morning, skipping lunch, and taking on more client calls than you can count—and your bank account says “I need more cash” something’s wrong. Underpricing is like jogging in place (you’re not getting anywhere). You’re literally working your ass off for returns that don’t match all of the hours you’re working, and that my friend leads to burnout. This kind of hustle might feel normal now, but it’s not something you can keep up with, and it’ll cost you more than money.

How to fix it: See what the market says, do a bit of research (see what people are charging in your industry for similar services. Then figure out your baseline rate—the absolute lowest you need to cover your expenses and make a profit). This isn’t just about your hourly rate; it’s about considering everything that keeps your business, well, in business (those software fees, marketing expenses, even your coffee bill). After you decide on your price, don’t change it for a while. No more “Yeah, I can do it for that price” when you know you shouldn’t. The right clients will respect your pricing if it aligns with your value.

Sign 2: Clients Are Surprised By Your Rates (in a Good Way)

Have you ever had a client say, “Hold on, that’s all you charge?” with stars in their eyes because they know it’s such a good deal? Sure, it feels nice knowing your prices are affordable, but if clients are always surprised by how low your rates are, you’re undercharging. And the thing is—low pricing can make people think your work isn’t all that. Believe me, you don’t want to be the discount, great value version of your industry.

How to fix it: Slowly raise your rates. You don’t have to go from $1,000 to $3,000 overnight—but start with a small increase and see how it feels. And part of the job is letting people know what makes you worth it. You’re not just offering a service; you’re offering a solution that has real value. If your clients don’t get it, they aren’t the right fit. 

Sign 3: You’re Attracting the Wrong Clients

You know the ones—the clients who want a discount on the discount. If people are in your inbox asking, “Do you have a cheaper option?” or saying “I need the lowest price and quick turnaround,” your pricing could be the reason. Underpricing attracts the wrong kind of people—the ones who aren’t serious about your work and will probably make the job harder than it needs to be. 

How to fix it: Raise your rates and stand by them. It’s not just about the money; it’s about attracting the right people who value what you do. Higher prices tell clients, “I know my worth, and you should too.” The right clients will still want to work with you. And these are the people you’ll actually love working with.  

Sign 4: You’re Avoiding Raising Prices Because You’re Scared of Losing Clients

The thought of raising prices makes you literally want to throw up because what if clients say, “Nah, I’m good” and go with someone else? Well, here’s the no bs version: if raising your prices makes a client leave, they probably weren’t your ideal client and that’s okay. The ones who really see your value will stay—and they’re the ones you should want to work with. 

How to fix it: Always be honest about why you’re raising your prices. They shouldn’t get a casual email out of nowhere saying “Sup, pay me $2,000 now, $750 is out the window” (in so many words). Let them know the why—it doesn’t matter if it’s because of increased business expenses (you hired a VA), additional service add-ons, or changes in the market. When you position your price increase as a move toward even more value, your clients will get it. Being clear about your reasons helps the right people decide to stay. 

Sign 5: You’re Constantly Discounting Your Services

If you find yourself offering discounts like once a month, it’s time to stop undervaluing your services. I’m not saying it’s not cool to ever discount your prices, because that’s a total lie. I am saying that constant discounting tells clients that you don’t believe your service is worth the full price. If you’re lowering your prices every time you need a client, your business won’t last. 

How to fix it: Learn to say no with confidence when someone asks for a discount. Be clear that your rates are your rates and only offer discounts when they make sense, like for repeat clients or exclusive promotions. Know that your services have value, and clients need to see that. The value of your regular pricing should do the talking without needing a discount to get them to say “Yes!” 

If you’re nodding along saying “Oh crap, I do that,” it’s time to adjust those prices … okay? Raising your rates and confidently showing the value you bring will help you attract better clients, work a little less, and make more. It’s time to stop underpricing and start charging what you’re really worth. Don’t be afraid to tweak your rates as you grow. Your future self (and your bank account) will thank you, oh so much. 

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