How to Price Your Offer When You’re Just Starting Out (Without Underselling Yourself)
Pricing is one of the biggest stumbling blocks for new entrepreneurs.
Set it too low and you feel resentful, burnt out, or undervalued.
Set it too high and you worry no one will buy.
And when you’re just starting out—with no testimonials, no audience, and no brand recognition—it can feel like a complete guessing game.
But pricing doesn’t have to be confusing. In fact, your price should be a reflection of value—not just what “feels fair.”
In this guide, we’ll walk through how to price your offer in a way that feels confident, sustainable, and aligned with the real outcome you deliver.
You’ll learn:
What to do before you pick a number
Why most new entrepreneurs undercharge (and how to fix it)
How to pick a starting price without second-guessing
And how to raise your rates with integrity as your confidence grows
First, Understand What Pricing Really Does
Most people think of pricing as just “how much I charge.” But it’s more than that—it’s a signal.
Your price communicates:
The level of transformation your offer delivers
The type of client you want to attract
How much you value your own time and expertise
A price that’s too low sends the wrong message.
It suggests your offer is basic, untested, or not worth paying attention to—even if the work is great.
Your goal isn’t just to set a number you’re “comfortable with.”
Your goal is to set a number that reflects the true value of the problem you solve.
The Real Reason New Entrepreneurs Undersell Themselves
If you’re like most people just starting out, your first instinct is to set your price low. You tell yourself:
“I don’t have enough experience yet.”
“What if no one buys?”
“I just want to get a few testimonials first.”
The logic makes sense—but here’s the trap: you end up anchoring yourself to a low-value identity.
The longer you stay underpriced, the harder it becomes to raise your rates. You start attracting clients who expect discounts, resist boundaries, or constantly ask for more. And even worse—you begin to believe your work isn’t worth more.
The solution isn’t to go premium right away—it’s to price based on value, not fear.
Start with a number that feels fair to both you and your client. Then validate and adjust.
Step 1: Clarify the Result You’re Delivering
Before you even think about pricing, get clear on this question:
What’s the transformation or result your offer helps someone achieve?
People don’t buy your time. They buy the outcome. The clearer you are on what that outcome is, the easier it is to charge what it’s worth.
Ask yourself:
What problem does this solve?
What’s the cost of this problem if it goes unresolved?
How does my offer make life easier, faster, or better?
When you’re clear on the value of the outcome, you stop thinking like a time-for-money employee—and start thinking like an entrepreneur who solves meaningful problems.
Step 2: Know What Your Offer Is Really Worth to Your Client
The value of your offer isn’t based on what it costs you to deliver—it’s based on what it saves or creates for the client.
Let’s say you’re helping a small business owner get more Google reviews. That might take you a few hours of work—but if it boosts their credibility and brings in 3–5 new clients per month, your service could be worth thousands.
Or maybe you help solopreneurs write a clear value proposition. That one document might lead to higher conversions on every sales page, email, and discovery call they run from now on.
Even if your offer feels “simple” to you, the result it delivers could be transformational to someone else.
Don’t charge based on effort—charge based on impact.
Step 3: Pick a Starting Price That’s Sustainable (But Stretching)
Now that you’ve identified the value you create, it’s time to set a starting price. Here’s a practical rule:
Start with a price that stretches you slightly—but doesn’t scare you into silence.
If you’re afraid to say it out loud, it’s probably too high for now. But if you’re undercharging just to avoid discomfort, you’re setting yourself up for burnout.
A good starting point:
Think about what would make this offer feel like a win for both you and your first few clients. It should honor your time, the outcome you deliver, and the value they receive—without locking you into a rate you’ll regret later.
Step 4: Consider the True Cost of Delivery
While pricing should be value-driven, it’s still important to run the numbers. Ask yourself:
How much time does it take you to deliver this offer?
Are there any hard costs (software, tools, subscriptions)?
Will this scale well, or does every client require more input?
Even if your offer is manual or time-intensive now, understanding your delivery cost will help you:
Avoid underpricing yourself into burnout
See when it’s time to raise your rates or change your delivery model
Stay profitable as you grow
Think long-term sustainability—not just “getting your first few clients.”
Step 5: Don’t Compete on Price—Compete on Clarity
Trying to be the cheapest in your market is a race to the bottom.
It attracts price-sensitive clients and keeps you in a constant state of hustle.
Instead, compete on clarity:
Make your outcome obvious and desirable
Focus on a specific result
Speak directly to the pain or frustration your client is experiencing
When someone clearly sees how your offer solves their problem, they stop comparing you to everyone else—and they stop fixating on price.
Step 6: Use Anchoring to Frame Your Value
If your price is the only number someone sees, it becomes the only thing they judge. But if you use anchoring, you help them see the true context of what they’re getting.
Examples:
“Most consultants charge $2,000+ for this kind of audit—but I’ve packaged it into a focused 90-minute session for $495.”
“Hiring a full-time [specialist] could cost $60K per year. This package gives you the same result at a fraction of the cost.”
Anchoring isn’t about manipulating—it’s about giving your buyer a framework to understand what they’re paying for and why it’s a smart investment.
Step 7: Use Tiered Pricing if You’re Still Testing
If you’re still refining your offer—or if you’re nervous about picking a “perfect” price—create 2–3 pricing tiers.
For example:
$195 for a single session
$495 for a short-term package
$895 for a full-service version
This gives your buyers options—and gives you feedback on what people actually want.
It also allows you to start where you’re comfortable, while still offering a path to higher-value, higher-priced work as your confidence grows.
Step 8: Raise Your Prices Gradually—With Integrity
Once you’ve validated your offer and delivered real results, don’t be afraid to raise your prices.
Here’s when you know it’s time:
You’re getting consistent positive feedback
You’re booked out or nearing capacity
You’re delivering more value than you originally promised
You don’t have to double your rates overnight. Just raise them incrementally—especially when your offer becomes more refined, your delivery process becomes smoother, or your outcomes become more consistent.
And yes, you can do this without losing trust:
Give advance notice to current clients
Honor previous rates for a limited time
Clearly communicate what’s included and how the value has evolved
Avoid These Common Pricing Traps
Even smart entrepreneurs fall into these traps—especially early on:
• Pricing based on competitors
What someone else charges has nothing to do with your value, your audience, or your business model. Use your own numbers.
• Letting fear set your price
Fear-based pricing always leads to undercharging. Build your price around the value you create—not your self-doubt.
• Offering discounts to “close the deal”
Discounts often backfire. They cheapen your brand and attract the wrong clients. If you want to make your offer more accessible, consider payment plans—not discounts.
• Charging hourly
Unless you’re doing highly technical freelance work, hourly pricing trains clients to focus on your time, not your outcome. Use flat fees or package pricing whenever possible.
Your Price Reflects Your Belief in the Work
Pricing isn’t just a business decision—it’s a reflection of your mindset.
It shows how much you trust your process, how much you value the transformation you provide, and how committed you are to helping others.
When you price your offer with intention, you stop playing small. You stop just “charging for your time,” and start standing behind the value you create. You begin to attract clients who take your work seriously—and more importantly, you start taking yourself seriously as a business owner. That shift changes everything.
Not Sure If Your Price Matches Your Offer?
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