From Self-Doubt to Self-Worth: Overcoming Undercharging in Your Service-Based Business
Picture this: You've just finished a coaching session that left your client beaming with newfound clarity and motivation. You feel on top of the world... until it's time to send the invoice. Suddenly, that little voice pipes up: "Was it really worth that much? Maybe I should offer a discount...".
Sound familiar? Welcome to the twin challenges of undervaluing your services and grappling with imposter syndrome - two of the most common money mindset hurdles faced by brilliant women in service-based businesses like yourself.
In this post, we're diving deep into these interconnected challenges. We'll explore how they show up in your business, the impact they have on your success, and most importantly, how you can overcome them to step fully into your confidence and embrace the value you create for your clients.
Are you ready to transform self-doubt into self-assurance and start charging in alignment with the incredible value you offer?
Let's start with one of the most frequent challenges women entrepreneurs face: Undervaluing Services and Undercharging.
Challenge 1: Undervaluing Services and Undercharging
What it looks like:
- Constantly discounting your services
- Offering "friends rates" to almost everyone
- Feeling guilty when you do charge your full price
- Comparing yourself unfavorably to others in your field (“I’m not good/experienced/known/you name it as xxx”)
- Hesitating to raise your prices, even as your expertise grows
How it impacts your business:
This one's a real business-growth blocker. When you undervalue your services, you're not just shortchanging yourself. You're limiting your capacity to invest in your business, to reach more people, and ironically, to help more clients. And what about your lifestyle? Let’s not forget that you started this business because you wanted more freedom in the first place! (freedom over your own schedule, to spend more time with your loved ones, to do work you love - I’m sure you know what' I’m talking about!). It's like trying to fill everyone's cup while your own jug is running on empty!
Moreover, consistently undercharging can lead to burnout and resentment. It may also attract clients who don't fully value your work, leading to less satisfying professional relationships.
Mini case study:
Meet Anna, a brilliant relationships coach who was charging half of what her competitors were. "I'm still building my experience," she'd say. But after a mindset shift and some gentle nudging, Sarah realized that her unique approach was creating significant transformations for her clients. She raised her prices to reflect the value she was providing (not without some trepidation). The result? Not only did she attract more committed clients, but she was able to dedicate more resources to her own growth, ultimately providing even better service. Anna found that her higher prices actually increased her clients' perception of her value and their commitment to the coaching process.
Practical tip to start overcoming it:
Here's a little homework for you.
Take a moment to list out all the transformations your clients experience because of your work. All the "aha" moments, the breakthroughs, the life-changing shifts. Now, consider the long-term impact of these transformations on your clients' lives and businesses. This exercise isn't about attaching “your worth” to these outcomes, but about recognizing the real, tangible value you're creating in the world.
Next, research your market. What are others with similar expertise charging? You're not just selling time; you're selling transformation. Your prices should reflect that. (Note that this part is NOT to have you charge like your competition, you can charge whatever YOU want, it’s just to expand your perspective on what is possible. You will likely find people who charge lless than you, like you, and more than you. We all have our own money mindset “stuff” going on, so other people’s prices should be nothing but a perspective and definitely not a benchmark.)
Lastly, practice stating your prices confidently. Stand in front of a mirror and say your rates out loud without flinching or apologizing. The more comfortable you become saying it, the more comfortable you'll be when it comes time to tell a potential client.
When you price your services to reflect the value you provide, you're not being selfish - you're creating a sustainable model to keep sharing your gifts with the world. And oh, how the world needs those gifts!
Challenge 2: Imposter Syndrome and Pricing Decisions
Undercharging and Imposter Syndrome like to work together. They’re a good team!! This is why I have paired them up in this article!
What it looks like:
Constantly second-guessing your expertise
Feeling like a fraud, despite your qualifications and successes
Hesitating to raise your prices, even when you know your services provide great value
Overworking to prove your worth
Downplaying your achievements and the results you've helped clients achieve
How it impacts your business
Imposter syndrome is a sneaky saboteur of success. It keeps you playing small, prevents you from charging prices that reflect the value you provide, and can lead to burnout as you constantly try to prove yourself. It's like trying to run a marathon with lead weights on your ankles!
When you're caught in the grip of imposter syndrome, you might:
Miss out on opportunities that could elevate your business
Undercharge for your services, leading to financial stress
Attract clients who don't fully appreciate the value of your work or who are not a good fit for you.
Exhaust yourself by constantly seeking external validation
Mini case study
Meet Emma, a talented therapist who always felt she needed "just one more certification" before she could raise her rates. Despite glowing testimonials from clients, she kept her prices low "until she felt ready." After working on her mindset, Emma realized her existing skills and experience were already creating significant positive changes in her clients' lives. She raised her rates and, to her surprise, attracted even more committed clients who valued her expertise. The higher prices actually increased her clients' engagement in the therapy process, leading to better outcomes for them and more satisfaction for Emma.
Practical tip to start overcoming it
Create an "Accomplishment Archive." Every time you receive positive feedback, complete a project, or achieve a goal (no matter how small), jot it down. Include the results you've helped your clients achieve. When imposter syndrome strikes, revisit this archive. It's your personal evidence file against those pesky doubts.
Additionally, reframe your view of expertise. You don't need to know everything to be valuable to your clients. Your unique combination of skills, experiences, and perspective is what makes you an asset. Focus on the specific value you bring and the problems you solve for your clients.
The connection between these challenges: As I mentioned, undervaluing your services and imposter syndrome often go hand in hand. Both stem from a misalignment between your perception of your value and the actual value you provide to clients. By addressing one, you often make progress on the other!
Powerful reframes for both challenges:
Instead of "I'm not experienced enough to charge more," try "My unique approach and dedication create real value for my clients."
Replace "Who am I to charge these prices?" with "I'm excited to work with clients who recognize and value the transformation I offer."
Shift from "I need to be perfect to charge higher rates" to "My ongoing growth and commitment to my clients' success justify fair compensation."
I can hear some of your little voices getting really uncomfortable when I suggest you acknowledge yourself… So, let’s make this clear… recognizing and charging for the value you provide isn't about inflating your ego or taking advantage of clients! It's about acknowledging yourself and creating a sustainable business that allows you to continue serving and making a positive impact.
A FEW MORE THOUGHTS
Evolving your Money Mindset is a journey that requires self-awareness, dedication to be explorative and committed to doing things differently. Sometimes, a post like this may be eye opener, and sometimes, you need someone to take you by the hand and help you work through your own “stuff”. I’m just a throwstone away if you need me!
See you soon,
Maria
PS. In our next post, we'll explore how to master the art of selling with heart and cultivate an abundance mindset.
PPS. If you are curious about where you stand in your money mindset journey, I invite you to take my free Money Mindset Evolution Quiz, based on Adult Development Theories and over a decade of experience coaching women entrepreneurs and leaders, to uncover any hidden blocks around valuing your services and gain personalized insights to boost your confidence.