If you’re a founder, especially in a service or consulting business, you’ve probably second-guessed your price positioning more than once.
You don’t want to scare people away, but you also don’t want to feel like you’re giving your expertise away for free. Plus, let’s face it, you need enough revenue to keep the lights on and your team (and yourself!) paid. That tension and even fear are normal. It’s also why understanding price positioning is one of the most important skills you can develop early on.
Your price is not just a number. It’s a message.
And your prospects read into it whether you mean for them to or not.
People Read Into Your Pricing
Have you ever chosen an expensive wine on a menu just because you didn’t want to look cheap? Maybe it was for a date; perhaps it was a business meeting.
In that moment, you didn’t choose that particular wine because of its taste, value, or region. You chose it because of how it made you feel about yourself and how it might positively influence your dining partner’s perception.
Most of us have been in those shoes at some point in various ways, especially founders who often have a lot to prove.
Potential clients view your pricing in the same way. Based on the price, they’ll make assumptions about the value they’ll receive, how it will benefit them or make them feel, and how working with or buying from you will be perceived by others.
Be honest, let’s say you are comparing the same service with the same benefits and delivery from two different providers. One prices it at $49, and the other prices it at $500. Your gut reaction is probably that the $500 one will provide more value, regardless of how similar they actually are. $45 is a helpful tip that goes to your inbox and gets forgotten. $500 is a serious investment that you utilize fully.
That said, if you don’t have $500, then the $49 option may be a lifesaver.
Price sends a signal about the kind of customer you’re looking for, how confident you are in your value, and whether your solution is designed for those who need relief or those who want results.
What Underpricing Signals to Buyers
When founders set prices too low, they often think they’re being generous or accessible. But to the buyer, low pricing can signal something else entirely.
Here’s what underpricing may unintentionally communicate:
- You’re inexperienced or unsure of your offer.
- You don’t work with high-value clients.
- You’re more focused on getting paid than solving problems.
- You don’t believe your work creates a meaningful result.
Essentially, it’s about risk. You wouldn’t pay $100 for a parachute knowing they typically cost several thousand. The risk to your life would be too great, regardless of the amount of money you’d save.
It’s the same for a business looking to invest in a necessary solution. While they may not want to pay a giant sum of money, they also don’t want to waste a smaller amount on something that won’t fix their problem.
Personal Experience
I’ve been coaching and working with business owners and sales leaders for years now. However, I choose to keep my prices reasonable because working with new and early founders is my passion. I understand that they may not always have a budget for consulting, so I strive to make it as approachable as possible.
But just recently, I nearly lost a deal because the owner was concerned about my low prices. He was worried that he wouldn’t be getting the level of advice and strategy he wanted. I had already been working with somebody in the company, so fortunately, they sang my praises. After speaking with the owner, finding out what they need, and explaining my price positioning, we closed the deal. Even after months of working together, though, he still regularly tells me I should charge more.
So, even I run into price positioning issues.
What saves me is the fact that I’m very intentional about my prices and how I position them. That’s why this doesn’t mean your offer needs to be premium-priced. It just means the number should be intentional and aligned with the result you promise.
Pricing is positioning. If your price says “cheap,” the client expects a cheap experience. Effective communication can overcome that, but it requires you to take the time to understand what they need and how they expect to get it.
Common Price Positioning Mistakes Founders Make
Even founders who know better sometimes sabotage their own price positioning without realizing it.
Here are a few common habits that weaken your price message:
- Offering a steep discount the moment someone hesitates
- Charging different prices to different people with no apparent reason
- Justifying your price based on hours spent instead of value created
- Apologizing for your price before the buyer even objects
- Relying on gimmicks to make your pricing look more attractive (This applies more for businesses with front-facing pricing, but they include “limited time only,” high original price crossed out with deeply discounted current price, fake timers, and free bonuses)
- Using wording to denote value (exclusive, bespoke, etc.) while being vague about the actual value
These signals erode trust. If you seem unsure of your own value, don’t be surprised when your prospect feels unsure too.
While certain tactics and gimmicks may gain you a few extra clients, they might not be the ones you want. They likely won’t stick around, provide helpful referrals, or even fit your target audience, making them a pain to work with.
Plus, chaotic pricing can be a nightmare to manage, especially in the early stages when you lack account managers or bookkeepers.
Price as a Growth Lever
Your price doesn’t just affect your next sale. It affects everything that comes after, including your ability to scale.
If you are consistently underpricing your services:
- Can you afford to bring on help?
- Can you reinvest in improving your offer?
- Can you spend time on marketing or delivery without burning out?
If your pricing keeps you barely afloat, your business will stay stuck at the founder-only stage.
But when your price reflects your true value, you create margin. That margin gives you space to grow, improve, and eventually scale with confidence.
Price Positioning Reflects Value
Price is never just about affordability. It’s about perceived value, trust, and alignment.
You’ve already invested time, money, and effort into building a business. Don’t let that go to waste by undervaluing yourself and underselling what you can do for others.
Set your price based on what your work is worth to the person who needs it most. Then build your offer and your messaging to support that value every step of the way.
If you’re not sure whether your price is positioning you for growth or holding you back, let’s talk.
