Stop Undercharging: Value-Based Pricing That Actually Works

A freelancer was nervous. He’d just finished building a landing page for a client—took him eight hours, lots of coffee, and one minor panic attack when the CSS broke. When the client asked, “What do I owe you?” he mumbled, “Uh… $200?”

The client didn’t blink. Just said “Sure” and paid immediately.

That’s when it hit him: He could’ve charged double. Maybe triple.

Sound familiar?

The Problem: You’re Pricing Based on Time, Not Value

Most people calculate pricing like this: Hours worked × hourly rate = price.

That’s fine if you’re flipping burgers. But if you’re selling expertise, software, or services? That formula is leaving thousands of dollars on the table.

Here’s why: Your clients don’t care how long something takes. They care about the result.

If a landing page brings in $50,000 in sales, is it worth $200? Or $2,000?

Exactly.

The Big Lesson: Price Is Just Willingness to Pay

Let’s talk Pokemon cards for a second. (Stay with me.)

In 2026, a collectible card’s value isn’t determined by the cardboard it’s printed on. What changed over the years was how much someone was willing to pay for it.

That’s the entire game. Value isn’t fixed. It’s fluid. And it’s determined by what people believe something is worth.

Same goes for your services.

How to Actually Price Based on Value

Here’s the framework. Write this down.

Step 1: Forget What It Costs You

Stop thinking about how many hours you spent. Stop thinking about your overhead. That’s your problem, not the client’s.

Instead, ask this: What problem am I solving, and how valuable is that solution?

Let’s say you’re a consultant helping e-commerce brands optimize their Facebook ads. You charge $1,500/month. But if you’re generating an extra $15,000 in revenue for that client, you’re undercharging by a mile.

Meanwhile, the client is thrilled because they’re paying $1,500 to make $15,000. That’s a no-brainer.

Step 2: Understand Willingness to Pay

A software company owner runs a product that helps sales teams automate cold emails. It costs the company basically nothing to add another user—the software’s already built.

But here’s the magic: The company charges $5,000/month to companies with 30-person sales teams.

Why? Because if the software saves each rep 30% of their time, and those reps are making $75K/year, that’s massive ROI. The company’s payroll savings alone dwarf the software cost.

So even though it costs the company almost nothing to deliver, they charge thousands. Because the value is worth it.

That’s pricing done right.

Step 3: Position Yourself as a Specialist

Here’s a harsh truth: Generalists get paid less.

If you’re a “Facebook ads guy who does everything,” you’re competing with 10,000 other people. Your price has to stay low because you’re a commodity.

But if you’re a “Facebook ads specialist for seven-figure beauty brands,” suddenly you’re rare. There might only be 200 people in the country who can say that. And rare = expensive.

The more specific your expertise, the higher you can charge. Because specialization signals mastery. And people pay for mastery.

Real-World Example: Selling Software

Let’s say you’re selling a sales automation platform. It helps reps send cold emails, track responses, and book meetings.

Here’s the pitch:

“Your sales team spends 30% of their day on manual tasks—copy-pasting emails, updating spreadsheets, chasing down responses. Our software cuts that time in half.

Let’s do the math: You’ve got 30 sales reps making $75K/year. That’s $2.25 million in annual payroll. If our tool saves them 15% of their time, that’s $337,500 in productivity gains.

We charge $5,000/month. That’s $60,000/year. To save you over $300,000. Make sense?”

Boom. The math sells itself. Because you’re not selling software—you’re selling time, efficiency, and revenue.

Step 4: Anchor High, Then Justify

Here’s a psychological trick: Start with a higher number than you’re comfortable with. Then back it up with logic.

A web developer used to charge $500 for website builds. They felt awkward charging more. Then they tried this:

“My fee is $2,500. Here’s why: I’ll save you 40+ hours of figuring this out yourself, the site will convert 25% better than a DIY build, and you’ll have support for three months after launch.”

Guess what? People paid. Because the developer justified the price.

Most people undercharge because they’re scared of the number. But if you can explain the value, the price feels fair.

Step 5: Know When to Walk Away

Not every client is your client. And that’s okay.

If someone’s not willing to pay your rate, it’s usually because:

1. They don’t see the value (fix your pitch)
2. They can’t afford it (not your ideal client)
3. They’re just cheap (definitely not your ideal client)

Don’t chase low-budget projects that drain your energy. Instead, focus on clients who get what you do and are happy to pay for it.

Common Pricing Mistakes (And How to Fix Them)

Mistake #1: Charging by the hour
Fix: Charge by the project or the result. Time is a terrible metric for value.

Mistake #2: Lowering your price when someone hesitates
Fix: Stand firm. If they push back, ask why. Then address the objection with value, not discounts.

Mistake #3: Not asking for testimonials or case studies
Fix: Build social proof. Nothing justifies a high price like evidence that you’ve delivered before.

The Sophistication Factor

Here’s the final piece: The harder your skill is to replicate, the more you can charge.

Running Facebook ads? Lots of people can do that. Running Facebook ads specifically for eight-figure SaaS companies in the health tech space? Now you’re in rare air.

Same reason brain surgeons make more than general practitioners. Same reason accountants who specialize in Fortune 100 companies charge a premium. Rarity = value.

So the more you niche down, the more you can charge. Period.

Wrap-Up: Charge What You’re Worth

If you take one thing from this, let it be this: Stop pricing based on your costs. Start pricing based on the value you create.

Your time? Irrelevant. Your overhead? Doesn’t matter. What matters is the result you deliver and how much that result is worth to the client.

So the next time someone asks, “How much do you charge?” don’t flinch. Don’t apologize. Just tell them the number—and back it up with the value.

Because you’re not selling time. You’re selling outcomes.

And outcomes are priceless.

Ready to raise your rates? Calculate the value you bring, adjust your pricing, and start charging what you’re actually worth. Your future self will thank you.