If you’re a small business owner, chances are you’ve second-guessed your pricing at least once.
Maybe more than once.
You’ve probably asked yourself:
Am I charging too much?
What if clients say no?
I don’t want to sound greedy…
Here’s the truth most entrepreneurs don’t hear enough: pricing your services is one of the hardest parts of running a business. And one of the most important. It’s not just about numbers. It’s about confidence, professionalism, and whether your business can actually support you long-term.
Let’s break it down.
Most service-based business owners didn’t start their businesses because they love pricing strategy. They started because they’re passionate about at what they do.
When pricing feels hard, it’s usually because:
You don’t want to lose potential clients
You’re worried about being “too expensive”
You’re comparing yourself to others without seeing the full picture
This discomfort isn’t a sign you’re doing something wrong. It’s a sign you care about your business and your clients' needs. But letting fear drive pricing decisions often leads to a bigger problem. Undervaluing your work.
Undercutting yourself is incredibly common among freelancers, creatives, and service providers.
Not because the market demands it, but because:
Confidence wavers, especially early on
Rejection feels personal
There’s pressure to “be flexible”
Studies and small business reports consistently show that underpricing can lead to cash flow stress, burnout, overbooking, and difficulty growing.
Being busy doesn’t automatically mean you’re profitable. And being profitable doesn’t make you greedy. It makes you sustainable.
Here’s something most clients won’t say out loud. Price affects trust.
When clients don’t fully understand a service, and the work you put in behind the scenes, they use pricing as a shortcut to judge quality, experience, and credibility.
Lower prices can actually create doubt:
Why is this so cheap?
Am I missing something?
Is this person experienced enough?
Pricing isn’t just about affordability for your clients. It also gives them reassurance that they are choosing to partner with someone who can walk the walk, and talk the talk. Confident pricing helps clients feel safe choosing you.
A common starting point for pricing is:
“As long as I cover my expenses, I’m okay.”
But covering costs alone doesn’t account for:
Your time
Your energy
Time off
Growth
Unexpected slow periods
A business that only breaks even isn’t built to last. Don't know how to calculate your break-even point? Check out this article for more help: How To Calculate The Break-Even Point For Your Small Business
Frameworks like Profit First emphasize something many entrepreneurs learn the hard way: profit has to be intentional. This process puts entrepreneurs in the mindset that profitability is a habit. If it’s treated as an afterthought, it usually disappears.
Sustainable pricing allows your business to support you, not just survive month to month.
Let’s address the elephant in the room.
Charging appropriately for your services is not greedy.
In fact, responsible pricing:
Allows you to do better work
Prevents burnout
Helps you show up prepared and focused
Keeps your business healthy
Underpricing often leads to rushed work, resentment, and exhaustion, which can ultimately hurts both you and your clients.
Responsible pricing protects everyone involved.
Many service providers price based on hours because it feels fair and tangible. But time isn’t the full story.
Clients aren’t paying for, just the appointment. Or the meeting. Or the deliverable.
They’re paying for:
Experience
Skill
Judgment
Outcomes
Value-based pricing, a concept explored deeply in books like Value-Based Pricing, shifts the focus from how long something takes to what it delivers.
Here’s a pattern we see again and again:
Hesitant pricing invites negotiation
Confident pricing sets expectations
Clear pricing signals professionalism
When you state your price clearly and calmly, you are creating transparency with your clients that make them feel reassured in your expertise, equaling more confidence in their decision to choose your business. When your pricing reflects your confidence in expertise, clients are more respectful of your boundaries.
If you don’t believe in your pricing, it’s hard for clients to believe in it either.
So you made it this far. Let's make a game plan. Here are small action steps that can get you started:
List your real costs (including time and energy)
Research your local market — not to copy, but to understand context
Identify the outcomes you deliver, not just the tasks
Set pricing that supports sustainability, not survival
Practice saying your prices out loud — confidence grows with repetition
Helpful resources include small business guidance from SCORE and books like:
Profit First
Value-Based Pricing
When you price your services with clarity and confidence, you’re not just setting a number. You’re setting expectations for how clients value your work, and how you value yourself.
The right price doesn’t just support your business.
It supports you.