Overcoming the Fear of Undercharging in Your Business – Ep 32

Grow 32

Show Notes:

In this episode of the Grow Business Podcast, hosts Cory Mosley and Lon Graham tackle the issue of undercharging for services.

They explore the reasons why businesses might undercharge and the negative effects this can have on profitability and mindset.

The hosts discuss the importance of understanding the true cost of services, including the value of time and effort. They share personal anecdotes and emphasize the need for market research, reevaluating recurring costs, and differentiating one’s services.

The episode covers the evolution of pricing strategies, the concept of “price creep,” and the significance of confidence in increasing rates.

Cory and Lon also stress the importance of seeking professional advice and adjusting pricing to reflect the true value of services. The episode concludes with a thank you to listeners, highlighting the podcast’s commitment to providing value without sales pitches.

Timestamps:

  • Engaging Audience Interest (00:04:18)
  • Podcast Introduction (00:05:07)
  • Purpose of the Podcast (00:06:10)
  • Co-host Banter (00:07:07)
  • Undercharging for Services (00:07:57)
  • Perception of Value and Abilities (00:08:56) & (00:09:01)
  • ‘Busy, Booked, and Broke’ Scenario (00:10:43)
  • Breaking the Undercharging Cycle (00:12:15)
  • Understanding Service Costs (00:13:17)
  • Recognizing One’s Worth (00:16:19)
  • Understanding Your Cost (00:17:37)
  • Researching Market and Margins (00:18:06)
  • Evaluating Operating Costs (00:19:11)
  • Adapting to Market Changes (00:21:07)
  • Assessing Value Proposition (00:22:07)
  • Comparing Market Parallels (00:24:01)
  • Distinguishing Product Value (00:27:44)
  • Targeting a Different Audience (00:33:36)
  • The Value Proposition (00:34:41)
  • Raising Fees and Changing Strategies (00:36:11)
  • Price Creep and Market Response (00:37:51)
  • Building Confidence Through Gradual Rate Increase (00:40:20)
  • Experimenting with Pricing (00:43:37)
  • Seeking Professional Advice (00:44:13)
  • Understanding the True Value (00:45:55)
  • Changing Customer Base and Releasing Clients (00:50:46)
  • The Importance of Listener Feedback (00:52:33)
  • The Potential for Future Clients (00:54:13)
  • Expressing Gratitude to the Audience (00:54:40)
  • Closing Remarks and Future Episode Teaser (00:54:59)

Bullet Points:

  • Undercharging for services and its impact on businesses
  • Understanding the true cost of providing a service
  • Challenges of breaking the cycle of undercharging
  • Techniques for raising prices without losing clients
  • Impact of recurring costs and subscriptions on business expenses
  • Evaluating the market and staying competitive in pricing
  • Differentiating services and identifying unique selling points
  • Recognizing the value of offerings and avoiding undercharging
  • Evolution of speaking fees and determining the value of a service
  • Experimenting with pricing and seeking professional advice

Disclaimers

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