If you’re building your own business, we know how much you’re pouring into it. Long hours, tough decisions, wearing every hat, you’re doing the work. But there’s a good chance you’re making one of the most common and damaging mistakes seen in early-stage entrepreneurs: you’re not charging enough.
You want to keep your prices low so people say yes. You want to be seen as affordable, maybe even generous. But here’s the truth: if you don’t price your product or service for what it’s really worth, you’re putting your entire business at risk.
You won’t have enough to pay yourself well. You won’t be able to hire help when you need it. And the growth you dream of? That won’t happen if you’re always barely breaking even.
We want to help you shift that mindset. Let’s look at why this mistake happens, and more importantly, how you can start charging in a way that truly supports your business—and your future.
Why Do Entrepreneurs Undercharge?
Let’s be honest—one of the biggest reasons we don’t charge what we should is fear.
You might feel nervous that if your prices go up, your customers will leave. Maybe you tell yourself, “I’m just starting out. I can’t charge that much yet.” Or you worry someone will look at your price and say, “That’s too expensive,” and walk away.
That kind of fear is normal. We’ve all been there. But here’s the truth: when we let fear control our pricing, we end up hurting our business.
When your prices are too low, it becomes tough to keep up. You can’t cover your costs—things like supplies, software, rent, or paying a team. You might not even be paying yourself a real income. And if you’re not bringing in enough money, how can you ever grow?
This is where mindset matters. Casey Brown, a pricing expert, says it perfectly:
“No one will ever pay you what you’re worth. They’ll only ever pay you what they think you’re worth—and you control their thinking.”
So if people aren’t seeing your value, that’s something we can fix. You have to help them understand what they’re really getting. Show them the results. Be confident in how you talk about your offer. Make it clear why your product or service is worth every penny.
Read related article: Increase Your Odds of Entrepreneurial Success
Real-World Results: Raising Prices Works
Here’s the truth: raising our prices works.
We’ve seen it time and time again. Entrepreneurs just like us decide to stop undercharging and finally raise their prices—yes, even when it feels uncomfortable. And guess what? The sky doesn’t fall. Great clients don’t disappear. Business doesn’t dry up.
In fact, the results are usually better than expected.
We start attracting customers who actually value what we do. We stop bending over backward for people who want everything for nothing. We gain confidence. And best of all? We become more profitable. That means more freedom, more choices, and less stress.
Dan Sullivan, founder of Strategic Coach, gives us a great way to approach pricing:
“Choose a price that scares you, then add 20%.”
Sound bold? That’s the point. That nervous feeling in our gut usually means we’re stepping into our true worth. We’re moving past fear and starting to charge based on real value, not just what feels safe.
Let’s remember: when we solve real problems, save people time, bring them peace of mind, or help them grow—that’s valuable. And the right people will pay for it.
So let’s stop selling ourselves short. Let’s charge with confidence, knowing we’re worth it—and that the right customers will see it too.
The Simple Math Behind Better Pricing
Let’s break this down in the easiest way possible.
Imagine your business is doing okay. You are not losing money, but you are not really making a profit either. You are just breaking even. Every dollar you earn goes right back out to cover your costs like supplies, tools, software, rent, or paying yourself a basic amount.
Now let’s say we raise our prices by just 10 percent. That means if we used to charge 100 dollars, we now charge 110 dollars.
If our costs stay the same and they usually do, at least at first, that extra 10 dollars goes straight into profit. We have gone from making zero profit to keeping 10 dollars out of every 110 dollar sale. That is a 10 percent profit margin just from one small price change.
That is not complicated math. It is just simple addition. But the impact is big.
With that extra income, we can do so much more. Finally pay ourselves what we deserve. Hire help. Save for taxes. Invest in better tools. Or even take a day off without guilt.
So do not underestimate what a small price bump can do. A little more per sale, over time, adds up to more freedom, less stress, and a stronger business.
Keep Your Customer in Mind
Let’s clear something up. Raising our prices doesn’t mean we stop caring about our customers. In fact, it’s the opposite. When we charge more, we’re saying, “We’re serious about the value we bring, and we’re committed to delivering our best.”
We’re not just asking for more money—we’re stepping up our game. That means offering a better experience, solving real problems, and making sure our customers feel taken care of every step of the way.
If what we offer truly helps people, and if we deliver that help with care and consistency, the right customers won’t leave. In fact, they’ll stick with us because they trust us. They’ll see the quality. They’ll feel the difference. And they’ll be happy to pay for it.
That’s why we need to stay close to our customers. Listen to what they’re saying. Watch how they respond. Ask questions. Get feedback. When we stay connected, we’re able to adjust, improve, and keep showing up in the way they need us to.
Bottom line: when we focus on giving real value and keep our customers’ needs at the center of everything we do, raising prices isn’t a risk—it’s a sign of growth. So let’s always stay obsessed with serving them well. That’s what builds loyalty and long-term success.
Final Thought
Avoiding the mistake of undercharging isn’t just about making more money. It’s about building a business that can truly support you, serve your customers well, and grow sustainably over time. This one shift can completely change your direction—and your results.
But this is just one of the 8 Critical Mistakes new entrepreneurs make. If you want to avoid the rest and give yourself the best shot at success, I encourage you to dive deeper.
Pick up a copy of Entrepreneurial Leap and take the free Entrepreneur-in-the-Making Assessment at e-leap.com. You’ll get tools, clarity, and a clear path forward—whether you’re just getting started or already in the game.
Stay focused,
Gino
