Setting profitable prices isn’t about being the cheapest — it’s about charging what your products or services are truly worth. Many retailers fall into the trap of underpricing, often in the hope of attracting more customers. But in reality, pricing too low can devalue your work, damage your confidence, and hurt your long-term profits.
Let’s explore why underpricing is risky and how you can price confidently without scaring away customers.
Why Underpricing Is a Problem
Retailers often undercharge because of fear — fear that someone will question their pricing, say no, or walk away. But here’s the truth: not all customers are your customers, and that’s okay.
If you’re undercharging, it may be due to:
- Fear of rejection or confrontation
- Not taking your business seriously
- Low business self-esteem
- A belief that you’re helping others by being “affordable”
- But here’s the reality:
- You do not decide how much money your customers have
- You do not help them by underpricing
- Being too cheap can actually push people away
In fact, customers may question your value if your prices are too low. Many people associate price with quality — and will gladly pay more if they feel confident in the value you provide.
Signs You’re Not Charging Profitable Prices
Ask yourself these questions:
- Do you have little or no money left after expenses?
- Are you working all hours but still underpaid?
- Are you scared to raise your prices?
- Are your profit margins below 60–70%?
- Do your competitors charge much more than you?
- Do you undercharge hoping for volume sales?
- Are you booked out, but not hitting your income goals?
If you said yes to any of these, it’s time to review your pricing strategy. You deserve to be paid well for your time, skills, and products — without guilt or fear.
Price Based on Value — Not Fear
To set profitable prices, you must understand and communicate your value.
1. Know Your Value
Value is more than just what something costs. It includes:
- Your unique style and USPs
- The quality of your products or services
- How in demand you are
- How you save your customers time or money
Your pricing should reflect the experience, thought, materials, and care that go into what you create.
2. Highlight Your Quality
Tell, show, and explain the quality of what you offer:
- What materials do you use?
- What are your processes?
- How do you pay attention to detail?
When customers understand what goes into your products or services, they’re more likely to appreciate — and pay for — the higher price.
3. Understand Your Demand
If you’re regularly booked out, selling out launches, or oversubscribed, that’s a clear sign that demand exceeds supply — and your pricing likely needs an increase to match.
Let your customers know why people love your work. Share reviews, waitlists, and success stories that support the value of what you offer.
Positioning Matters
Your prices should align with:
- Your brand values
- Your market positioning
- Your ideal customer profile
Look at your competitors — but only through the lens of your unique brand and product USPs. You don’t have to be the cheapest. You need to be the best fit for your ideal customer.
So… How Would You Price Yourself Now?
If you’re not making enough per sale, working non-stop, or feeling resentful every time you sell — it’s time for a change.
Set profitable prices that honour your time, skills, and value.
Because when you price confidently and communicate your worth, you won’t scare customers away — you’ll attract the right ones.
Final Thought
Pricing isn’t just about numbers. It’s about respecting your worth, delivering value, and building a sustainable business.
Profitable prices give you freedom, confidence, and the ability to grow — and your customers will thank you for the quality and care you bring to every product.
Book a Price Review
Need a helping hand to ensure you have profitable prices?
Book a one-off Strategy Session now to get personalised advice, honest feedback, and action points to implement immediately so you know exactly how to price your products for profit to grow your sales.
Would you like a free call to discuss what you need help with and how I can help? Book your free discovery call now.
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