How to Price Your Services Without Underselling Yourself (or Scaring Away Clients!)
How to Price Your Services Without Underselling Yourself (or Scaring Away Clients)
By Amy L. Sedatole, CPA
Stress-Free Accounting | Small Business Cheerleader | Helping You Focus on Your Expertise
Let’s be honest—pricing your services can feel like a never-ending guessing game. Charge too little, and you end up overworked and underpaid. Charge too much, and you worry about scaring off potential clients. But here’s the truth: pricing is not about luck, it is about strategy.
If you are tired of throwing out random numbers and hoping they work, it is time to fix that. Here’s how to price with confidence, charge your worth, and stop leaving money on the table.
Know Your Numbers – Your Pricing Foundation
Before you pick a price, you need to know exactly what it costs to run your business. This includes everything—materials, labor, software, overhead, taxes, and even that overpriced coffee that fuels your late nights.
If you do not know your costs, you are just guessing, and that is a fast track to a failing business. Do the math, get specific, and make sure your pricing covers it all while leaving room for profit.
Do a Little (Legal) Spying on the Competition
Market research is key. What are similar businesses charging for services like yours?
Check websites, ask around, and get a feel for the pricing landscape. But do not just copy their numbers. Use this information to position yourself based on value. If your competitors offer budget pricing but take forever to deliver, you can charge more for speed, efficiency, or premium service.
Sell the Value – Not Just the Service
Clients do not just pay for what you do. They pay for the results they get.
Are you saving them time? Reducing stress? Helping them make more money? Your pricing should reflect the transformation you provide, not just the tasks you complete.
Think of yourself as an expert in your field. Be clear about the unique value you bring, and clients will gladly pay your rates.
Pick the Right Pricing Model for Your Business
Not all pricing is created equal. Here are a few common strategies:
Hourly Rates: Good for short-term projects but can limit earning potential.
Project-Based Pricing: A set price per project, perfect for well-defined work.
Retainers: Recurring revenue for ongoing support, ensuring consistent income.
Value-Based Pricing: Charging based on the results and benefits you deliver.
Choose the model that best fits your business and provides clarity for both you and your clients.
Profit First – Because You Are in Business to Make Money
Your pricing should not just cover costs. It should build a profitable business.
Do not be afraid to include a solid profit margin. Your pricing should reflect the value of your work and the expertise you bring. If you undercharge, you will struggle to grow, invest in your business, and pay yourself what you deserve.
Tiered Pricing – Give Clients Options and Increase Sales
One-size-fits-all pricing does not work. Clients like having options.
Create tiered pricing packages that let clients choose the level of service that fits their needs and budget. Think of it like streaming services that offer basic, standard, and premium plans. Offering different pricing levels makes your services more accessible while increasing your earning potential.
Bundle It Up – More Value, More Revenue
Want to increase the perceived value of your services while boosting sales? Start bundling.
Instead of selling services individually, combine related offerings into packages. This makes it easier for clients to say yes and gives them a more complete solution. For example, if you offer bookkeeping and tax prep, bundling them together creates a seamless service that clients will appreciate.
Pricing is Not Set in Stone – Keep Evolving
Your costs will change. Market trends will shift. Your experience and expertise will grow. Your pricing should reflect that.
Review your prices regularly—at least once a year—and adjust them as needed. Staying competitive and profitable means keeping up with your business’s growth and the value you provide.
Communicate Your Worth Clearly and Confidently
If you charge premium prices, your messaging, branding, and client communication should reflect that.
Clients need to understand exactly why your services are worth the investment. Highlight success stories, share testimonials, and be clear about what sets you apart from the competition. Confident pricing starts with confident messaging.
Deliver an Experience That Justifies Your Price
At the end of the day, great service backs up great pricing.
When you provide outstanding results, deliver on time, and make the process seamless, clients will have no problem paying your rates. Happy clients turn into repeat clients, referrals, and long-term business success.
Final Thoughts: Pricing is Power – Use It Wisely
Effective pricing is not just about covering costs. It is about running a sustainable, profitable business. When you price with confidence, you attract the right clients, increase your revenue, and set yourself up for long-term success.
If you need help optimizing your pricing and financial strategy, let’s talk. Schedule a call today, and let’s build a pricing plan that works for you.
