“Charge your worth!” has been a phrase tossed around the entrepreneurial world for at
least a handful of years, and it feels like a wildfire I’ve been chasing around with a 5-
gallon bucket.
There have been countless articles written about the subject. Here are two quotes to
wet your whistle…
In 2018, Forbes said, “Ask for what you’re worth, and don’t hedge or apologize when
you’re not the best bargain around.”
In 2022, The Motley Fool said, “…I learned a valuable lesson and one of the most
important business tips. When pricing your services, charge what you’re worth.”
“How novel!” people thought. And I get it; all of that sounds endearing. But there’s more
than meets the eye with this little wolf in sheep’s clothing.
“Ask for what you’re worth…” I can just imagine the thoughts running through the minds
of business owners…
What AM I worth?
$100/hour?
$1,000/hour?
$10,000/hour?
$100,000/hour?
It feels like not enough and too much at the same time!
Okay, I’ll go about it another way, they think…
Well, I know so-and-so in this space charges X amount; they’ve been doing this work for
Y years, with Z education minus this, times that… is that what I’m worth?
This is when the game of comparison begins to dictate the conversation.
I’m being a bit dramatic here with my examples, but I want us to really see what this
phrase has done to our psyche.
According to “The Gender Gap in Self-Promotion” study conducted by the National
Bureau of Economic Research, close to 80% of women struggle with low self-esteem.
I’m not saying this phrase caused a low self-worth phenomenon, but I am asking this
question…
How on earth is a population that struggles with self-worth supposed to handle the
pressures of establishing prices based on worth?
The short answer is that they don’t handle those pressures. They succumb to them by
charging less than they should have in the first place.
Not that we needed social proof of this, but just in case, a trending Instagram audio
made a short debut with these words: “Can I have twenty bucks?” Almost every person
who posted a Reel with that audio made some sort of reference to feeling bad about
charging others, so asking for a twenty was going to have to do. Some of them may
have been in jest, but the responses in their comments definitely were not.
Now let’s move to the second half of that Forbes article quote: “…and don’t hedge or
apologize when you’re not the best bargain around.” Again, this sounds so empowering!
But if you have a customer legitimately asking you what brought you to the $10,000
price point of your coaching package, how will you respond if you came to that decision
solely based on your worth? I know there are a lot of nuances to this piece of the puzzle,
so let’s dig in a little deeper.
First and foremost, when someone asks about your price point for a specific service, it’s
not an instant objection. They may be an analytical buyer who is seeking additional
information. Also, it’s not an instant judgement of you either; sometimes, questions are
just questions.
Here’s the essential part: you can’t just answer with “I’m charging my worth.” We need to
describe how we’ve priced our services confidently. Note: Confidently does not mean
with extreme detail.
Deciding on a price can be one of the trickier parts of entrepreneurship to navigate.
Although it’s not the sole purpose of this article, I would be doing you a disservice if I
didn’t mention at least a few tips. These strategies can offer you a jumping-off point.
Determine your break-even point
By definition, break-even is when your total costs equal your total revenue.
By knowing how much it costs you to offer your service, you’ll be able to determine what
price would keep you from going in the negative.
An example:
If it costs you $3,500 monthly to run your business–$3,500 in revenue would be your
break even.
Let’s say you have the capacity for ten clients in a month. That means your per client
break-even point is $3500/10 = $350.
Although this may seem like common sense, it’s something I believe is often
overlooked, and I will continue to preach–we cannot stay in business if we don’t make a
profit.
Knowing that $350 with ten clients is your break-even, now you have options: up your
price per client or take on more clients.
Do some market research
What are others in your industry charging?
What are clients paying for a similar service?
If you decided to charge $650 for your service, is that in the ballpark of what the market
can handle? Yes or no?
Some industries vary greatly (take business coaches as an example). To get a clearer
picture, you’ll have to know what audience you’re serving. If you work with new founders,
a $10,000 price point may not be feasible. If you work with established 7-figure business
owners, a $10,000 price point might be a no-brainer for them.
Do a gut check
Are YOU comfortable with the price you set? Does it feel good to you? Are you
comfortable charging people that amount, and are you comfortable with how much
you’ll be earning?
There is no truer north star than our intuition.
All that to say…
When an entrepreneur is trying to price their goods/services, the absolute last piece of
advice they should get is “Charge your worth,” right behind “Pick a number and start
there.” Money is an emotionally loaded topic, filled to the brim with emotions like guilt,
shame, embarrassment, and more.
When we tell people to charge their worth from a stage or flippantly toss that into a
coaching session during a pricing panic–what a complete and utter mind-fuck.
Let’s end on one additional aside with our good friend Imposter Syndrome. We can all
guess what happens when someone who is experiencing Imposter Syndrome goes to
price their service. They second-guess themselves, they price way below market (even
though that does everyone a disservice), and they decide another credential is
necessary before they can officially set their rates.
Yes, Imposter Syndrome can feel so real, but I’m starting to believe it’s a made-up
“diagnosis” to put women in a box. I started leaning in this direction after watching
Reshma Saujani’s commencement speech at Smith College in 2023: Imposter
Syndrome is Modern-Day Bicycle Face. If you haven’t seen this yet, I highly recommend
it.
In closing, although “Charge your worth!” appears to be an entrepreneurial battle cry, in
reality, it’s been a diatribe against female entrepreneurs since the moment it entered the
arena.
Guest Author Spotlight: Melissa Mittelstaedt of Melissa Mitt
Melissa Mittelstaedt is the founder of Melissa Mitt. She is an Accredited Financial Counselor® and coach who helps purpose-driven entrepreneurs get comfortable with money.
At The Gal Project, we believe in the magic that happens when women come together to share their journeys, insights, and expertise. This article was written by a special guest whose voice carries the powerful essence of being BAF—bold, ambitious, and fierce. Celebrate the incredible women making waves in their fields, and let their words motivate you to live your best life!