5 Signs you’re undercharging

Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry, or you’re a contractor. Costs have been rising, so it may be time to rethink your own pricing.

Here are five signs that you might be undercharging:

1. Nobody ever questions your quotes

Do all your new clients accept your quotes or invoices without asking any questions, requesting a breakdown, or wanting a discount? It’s possible they’re delighted to be getting such a great deal.

2. You’re run off your feet, but you can’t afford to get help

When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low.

3. Your prices have been the same for two years or more

In most industries, prices increase slightly each year. If you leave your prices flat for too long, you’re doing yourself a disservice, and then if you increase your prices to match others, it’s a big hike for customers. It’s a good idea to review your pricing each year.

4. You’re overbooked

Unless there’s a shortage in your industry, if you’re overbooked and can’t take on new clients, it’s likely you need to raise your prices.

5. Clients don’t treat you as well as they should

If you feel like your clients have more say than you do and that they’re taking you for granted, it could be that they don’t value you because your prices are too cheap. If they don’t see your time as valuable, they’re more likely to muck you around.

What should you be charging?

It can take a little time to find your pricing ‘sweet spot’. Do some research on your industry, ask around and find out what your competitors are charging. We can help with this as we have clients in similar industries so we might be able to give you some indication of typical fees, so give us a call or send us an email.