The Pricing Trap: Why Heart-Centered Entrepreneurs Are Stuck in an Undercharging Cycle

 

“What should I charge?”

It’s the question that haunts entrepreneurs everywhere, leading to late-night Google searches, anxiety-filled pricing pages, and that familiar pit in your stomach when someone asks about your rates.

If you’ve ever felt this way, I want you to know something important: You’re not alone, and it’s not your fault.


The Invisible Crisis in Entrepreneurial Pricing

There’s a pattern so consistent in the entrepreneurial world that it can’t be coincidence. It’s what I’ve come to call the Pricing Transparency Trap – and it’s keeping talented, heart-centered business owners stuck in a cycle of underearning and overdelivering.

Here’s what typically happens:

    1. You need to set your prices
    2. You look for industry standards to benchmark against
    3. You discover most competitors hide their prices behind “book a call” buttons
    4. Without any reference points, you’re left with no clue where to even start
    5. You end up choosing a number that doesn’t make you cringe to say out loud
    6. This number is inevitably too low for sustainability
    7. To compensate for the low price, you overdeliver
    8. You burn out on clients who aren’t paying enough for your time and expertise
    9. The cycle continues

Does that sound familiar? I hear this story from entrepreneurs all the time, regardless of their industry or experience level.


Why Transparency Matters in Pricing

Don’t you wish there was a “Glassdoor for entrepreneurs” where you could see what your competitors actually charge? A magical website where you could find out not just the price but what’s actually included, how many hours they spend, and whether they’re profitable at those rates?

Instead, we’re all stumbling around in the dark, trying to price our services without any reliable benchmarks to guide us. It’s like trying to figure out what to wear to an event when no one will tell you if it’s black-tie or beach casual.

When everyone hides their pricing, the entire market suffers. The most talented service providers undercharge because they don’t want to seem “greedy,” while clients miss out on working with the best fit for their needs because they’re shopping based solely on price without understanding the value differences.


The Real Reason You Can’t Figure Out What to Charge

Here’s what I’ve noticed after countless conversations with fellow entrepreneurs:

Most of us aren’t afraid of a specific number we have in mind. We’re completely in the dark about where to even start.

It’s not about having a number you’re afraid to say out loud. It’s about having absolutely no reference point to begin with.

We’ve all been there – spending hours searching for any hint of industry standards:

    • Scrolling through buried Reddit threads

    • Joining Facebook groups just to search “pricing”

    • Signing up for competitors’ email lists hoping for a price reveal

    • Asking friends of friends who might know someone in our industry

And even if we do manage to find a competitor’s pricing, we still have no idea:

    • What’s included in their packages

    • How many hours they actually spend per client

    • What their unique value proposition is compared to ours

    • Whether their business is even profitable at those rates

It’s like trying to bake a cake when all you have is a picture of the finished product, but no recipe, no ingredient list, and no idea how long it was in the oven.

The problem isn’t fear of charging too much. The problem is having no earthly idea what “too much” or “too little” even means in your market.


The Price-Value Paradox in Client Relationships

Here’s where it gets really interesting. When you charge too little:

    1. Clients value the work less. Research in consumer psychology shows people associate price with quality.
    2. You subconsciously resent the work. When the energy exchange feels unbalanced, you start to feel taken advantage of, even by lovely clients.

    3. You overdeliver to compensate. This creates unsustainable service standards you can never raise without disappointing clients.

    4. You attract price-sensitive clients. Who then refer other price-sensitive clients, creating a client base that’s forever focused on cost rather than value.

The Hidden Cost of Undercharging

The most insidious aspect of undercharging is that it costs you more than money. It costs you:

    • Energy: When you’re not compensated adequately, every client interaction drains rather than energizes

    • Confidence: Undercharging reinforces the belief that your work isn’t valuable

    • Impact: Burnout prevents you from serving at your highest capacity

    • Longevity: Many talented entrepreneurs quit because their business model isn’t sustainable

Breaking the Cycle: First Steps

So how do we break free from this cycle? The first step is understanding what I call your “Magic Minimum” – but don’t let the name fool you.

This isn’t about finding the lowest price you can charge.

It’s about discovering your Prosperity Foundation – the price point where magic happens because you’re energetically aligned, fully resourced, and able to deliver your absolute best work.

Think of it as the threshold where transformation becomes sustainable for both you and your clients. Below this number, you’re not just underearning – you’re literally paying to work with clients and diminishing the value they receive from you.

We’ve all had that moment of realization: “I’ve been selling with my own wallet this whole time.” Just because we might hesitate to pay a certain price doesn’t mean our ideal clients won’t – especially when they truly understand the transformation we provide.

Your Thoughts?

I’m curious – does this resonate with your experience? Have you struggled with pricing transparency in your field? What strategies have you found helpful in determining your rates?

In my next post, I’ll share a practical framework for calculating your own Magic Minimum (Prosperity Foundation) that will give you a concrete starting point for your pricing – no more guessing, no more undercharging.

Drop a comment below with your biggest pricing challenge, and I’ll address it in my follow-up post!

[Note: This is part one of a two-part series on sustainable pricing for heart-centered entrepreneurs. Subscribe to be notified when part two is published!]