You can never to seem to make enough money in your business. And if you do make enough money in your business, then it means working all waking hours of your life and taking on clients that don't pay you on time or making offers that you really don't want to do. These are all reasons that contribute to you undercharging in your business and ultimately not making enough money.
Money is a topic that most of us don't like to talk about. And then it comes to pricing in your business and you just don't know where to start. So you do 1 of 2 things: you either just pick a number out of the air (or from a gut feeling) to slap a price on your products and services; OR you look at your competitors and go with a price similar to them.
Both of these options will contribute to you undercharging for your products and services in your business.
5 Reasons You are Undercharging in Your Business
1. You don't believe in charging more for what you are offering.
So you mean to tell me, that if you were searching for advice similar to what you are offering, and you found a course or product or service that teaches that, you would be okay paying much less than what it's really worth?
In other words, would you really believe that the advice in that product or course or service would really help you at such a low price?
2. You want to help more people (everyone), so you price your courses, products and services low.
It's true that not everyone can afford your products and services. But it's also true that those that really want what you are offering are going to find a way to pay for it if they know that it will help them.
In your business, you really don't want to be able to help absolutely everyone. If this were the case, then why don't you just give away everything for FREE?
There is a reason why business coaches start their advice with telling you to pick a niche and then define your customer avatar. You aren't here to serve everyone. The people that want and need your products and services will find a way to buy them at your perfect price, rather than you undercharging so that you can serve everyone.
3. You don't do price research and figure out your actual costs for your products and services.
Price research is not a topic that is taught very often. I see questions about pricing all the time from business owners because they really don't know where to start with their pricing.
Luckily for them (and you), I've got you covered with this comprehensive course on how to Master Your Pricing.
You can also get my free perfect pricing worksheet to help you take even more work out of doing the pricing research.
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But also in this research you have to make sure you include your costs that it will take to produce this product or service. These are your direct costs, not your overhead costs. In other words, the programs, research, tools, tech, etc. that will take for you to be able to produce that one specific product or service; not all of your other costs like taxes, your other tools and tech and website, your coach, etc. Get more accounting definitions explained in non-accountant terms in this post.
4. You are comparing yourself to everyone else around you.
Comparison is a thief. I don't care what you think you are trying to compare about you or your business to someone else, just stop doing that.
Each person is completely unique. You and I might offer the exact same service or product. But you can't teach the way I do and I can't teach the way you do.
So when you compare yourself to someone else, you aren't taking into consideration your (or their) special abilities that make you completely unique in what you are offering. No one else can ever be you. No one else can ever do something the exact same way you do and get the same results.
Plus when you compare your business to someone else's and then offer a similar product or service, most of the time, you are going to set your prices a tad bit lower than theirs. You set your price lower thinking that there is a possibility that you can tap into their market and take their clients because your price is lower and they may be able to afford yours more.
This is one of the worst forms of comparison (and undercharging) that you can do for your business!
Not only are you undercharging, but you are telling potential clients that your competitor has something better because their price is higher. And attempting to steal clients from another business, always ends up badly for you.
5. You don't believe in yourself, your knowledge and your abilities.
If you don't believe in yourself, your knowledge and your abilities, what makes you think that your clients will either?
No one else can put more belief in you than you can.
You have to trust that you know what you are doing and then believe in the outcome. You wouldn't do what you do in your business if you didn't have the knowledge and abilities that you have.
You wouldn't have clients that buy your products and services if you didn't prove that you knew what you were doing and help your clients get results.
So start fully believing in you, your knowledge and your abilities now. It will help you realize that you are undercharging in your business and this is really hurting you.
How many of these reasons are true for you? What can you do right now to start changing these reasons so that you stop undercharging for your products and services in your business?
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