The Hidden Costs of Undercharging: Why Raising Your Prices Might Be the Best Move
Mar 31, 2025
If you’re feeling exhausted, overwhelmed, and maybe even a little resentful in your business, I need to ask you one thing—are you charging what you’re actually worth? If the answer is no (or you’re not sure), then this is exactly what we need to talk about.
In this episode of This Mother Means Business, I’m diving deep into the hidden cost of undercharging and why raising your rates might be the best thing you can do for both your business and your sanity. Because let’s be honest—as moms and entrepreneurs, we’re already doing a lot. The last thing we need is to burn ourselves out because we’re afraid to charge what we deserve.
The Real Cost of Undercharging
Undercharging isn’t just about making less money—it impacts everything from your energy levels to your business’s long-term success. Here’s how:
- You need more clients to survive. If you’re charging too little, you’ll have to take on more and more clients just to make ends meet. More clients mean more work, which leads to…
- Burnout. You’re working longer hours, delivering way more than what you’re actually getting paid for, and feeling exhausted. That exhaustion? It starts affecting the quality of your work.
- Your business becomes unsustainable. When you’re constantly over-delivering for less-than-ideal clients, you start to resent your work. And that resentment? It’s a fast track to burnout and wanting to quit altogether.
- Perception matters. Charging too little can actually make potential clients question your expertise. If everyone else is charging $2,000 and you’re offering it for $500, people are going to wonder, “What’s wrong with this?”
- You attract the wrong clients. When you undercharge, you often attract bargain-hunting clients who demand more but want to pay less. And let me tell you—that is not a fun place to be.
How to Confidently Raise Your Rates
If you’re reading this and thinking, Okay, Laura, I get it—but how do I actually raise my rates without losing all my clients? Here’s where to start:
- Get clear on your value. Your experience, your skills, the results you provide—these all matter. You’re not just charging for your time; you’re charging for the years of expertise that allow you to deliver the transformation your clients need.
- Do some market research. Understand what others in your industry are charging, but don’t just aim to be the cheapest. Competing on price alone is a race to the bottom, and trust me—you don’t want to be there.
- Test a small increase. If you’re nervous, start with a slight raise and see how it goes. But remember, if everyone is saying yes immediately, your prices are too low. You should hear some no’s!
- Stand firm in your worth. You will get pushback, and that’s okay. The right clients will stay. The ones who leave? They weren’t your people anyway.
- Communicate the change. If you have existing clients, be upfront about your rate increase. You don’t need to justify it—you simply need to own it.
You Deserve to Be Paid Well for What You Do
This is about more than just money—it’s about respecting your own time, energy, and expertise. When you charge what you’re worth, you show up more confidently, serve your clients better, and actually build a business that supports your life instead of draining it.
So if you’ve been feeling that nudge that it’s time to raise your rates? Listen to it. Your future self (and your bank account) will thank you.
Want to hear more about this? Catch the full episode: HERE
