Pricing Your Services: Finding the Sweet Spot for Profit and Value
Tip 1: Charge What You’re Worth
Let’s talk about one of the trickiest parts of running a business—pricing. If you’ve ever stared at a blank invoice wondering, “Is this too much? Too little? Will people even pay for this?”—you’re not alone. It’s one of the most common struggles I see with small business owners. And here’s the honest truth: most of them are undercharging. Big time.
But underpricing doesn’t just hurt your bank account. It impacts your confidence, your ability to grow, and ultimately, the sustainability of your business. When your rates don’t reflect your value, you end up stuck—overworked, underpaid, and unsure how to move forward. Let’s break down how to price smarter—so you can earn more, stress less, and build a business that supports you, not just your clients.
Why It Matters
Pricing isn’t just a number. It’s a statement. It tells people how you value your time, your skills, and the transformation you offer. If you’re not charging enough, you’re sending the message that what you do isn’t worth much—even if that’s the furthest thing from the truth.
And if you're constantly discounting or undercharging just to be "accessible"? Eventually, you’ll burn out. You won’t have the time, energy, or resources to deliver great work—let alone grow your business. But when you find that sweet spot—where your pricing reflects both the value you provide and the profit you need—everything starts to click. You attract better-fit clients, feel more confident in your work, and actually have room to breathe (and scale).
How to Price for Profit and Value
Let’s walk through the key steps to get your pricing right:
Know Your Costs (Like, Really Know Them)
Before you can set profitable prices, you have to understand what it actually costs you to deliver your services.
Break it down:
Materials & tools – Software, supplies, or platforms you use
Labor – Your time + any team support you rely on
Overhead – Rent, internet, taxes, subscriptions, admin time
Add it all up. If your pricing doesn’t at least cover these costs, you’re losing money every time you say yes to a client. But we’re not stopping at break-even. We’re building for profit.
Check Out the Competition (But Don’t Copy-Paste)
It’s smart to know what others in your space are charging—but it’s not smart to base your pricing entirely on theirs.
Ask yourself:
Where do I want to sit in the market—budget, mid-range, or premium?
What makes my offer stand out?
What kind of experience am I delivering?
Use competitor pricing as a reference, not a rule. If you bring more value to the table—more strategy, better service, deeper results—then your prices should reflect that.
Get Clear on Your Value
This is the part most people skip—and it’s the most important. Your price isn’t just about time—it’s about transformation. Think about it: You’re not just giving someone your hours. You’re giving them clarity, relief, momentum, confidence, outcomes. That’s what people are really paying for.
Ask yourself:
What results do I consistently help people achieve?
How does working with me improve someone’s life or business?
What am I offering that no one else is?
If your work solves real problems or creates real wins, your pricing should reflect that.
Build in Profit (Yes, You're Allowed to Make Money)
Once you’ve factored in your costs and your value, it’s time to set a profit margin that supports your growth. A good rule of thumb? Aim for at least 30–50% markup, depending on your industry. Higher, if you're offering a premium experience or highly specialized service. Profit isn’t greed. It’s fuel. It’s what lets you reinvest, take breaks, hire help, and actually build a business that lasts.
When You Nail Your Pricing…
You stop second-guessing.
You stop attracting price-shoppers.
You start showing up with more confidence and clarity.
Your business becomes more sustainable, more impactful, and honestly? More enjoyable to run.
So don’t be afraid to charge what you’re worth. Your work is valuable—and your pricing should say so, loud and clear.
