The Danger of "Reasonable" Pricing

Let’s have an honest chat about your pricing. You probably landed on your numbers by looking at what your competitors charge and picking a price that felt 'reasonable.' A price that would not scare anyone away. A price that felt safe.

Congratulations, you have just guaranteed that you will attract the worst kind of clients, the price shoppers, the tire kickers, the ones who question every invoice. And you have simultaneously repelled the best clients, the ones who see price as a signal of quality and are actively looking for a premium solution.

Your desire to be 'reasonable' is the most expensive mistake you are making in your business.

Price Is a Signal

In the absence of other information, price is the loudest signal of value. A $50 bottle of wine signals something very different from a $500 bottle. A $1,000 suit signals something different from a $10,000 suit.

When you set a low or 'reasonable' price, you are sending a clear signal, 'I am a commodity. I am an option for people who can not afford the real expert.'

A premium price, on the other hand, signals, 'I am a specialist. I solve this problem better than anyone else. My services are an investment, not a cost.' It is a form of pre qualification. It filters out the people you do not want to work with and acts as a magnet for the ones you do.

The Psychology of a Premium Client

Here is something most founders do not understand. Premium clients are actually easier to work with. Why?

• They are more committed. When they make a significant investment, they have skin in the game. They show up, they do the work, and they get better results (which creates better case studies for you).
• They trust your expertise. They are not hiring you to tell you how to do your job. They are hiring you to lead. They respect your process.
• They have bigger problems. And solving bigger problems is more fulfilling and more profitable.

By underpricing, you are not just leaving money on the table, you are actively choosing to work with more difficult clients who will get worse results. It is a lose lose.

How to Price with Confidence

The confidence to charge premium prices does not come from courage. It comes from clarity. Clarity on the specific, painful problem you solve. Clarity on the tangible, economic value of that solution.

Stop anchoring your price to your hours. Anchor it to the client’s outcome. If you can help a client generate an extra $200,000, is a $20,000 fee unreasonable? Of course not. It is a fantastic investment.

Getting this clarity is the most important strategic work you can do. Our free audit is designed to help you find it. It will show you the weaknesses in your current model, so you can start building the strategic foundation to finally charge what you are truly worth.