We have learned that many entrepreneurs unknowingly make pricing mistakes that cost sales, credibility, and growth. What about you? Are you confident your pricing reflects your value? Here are ten common pricing mistakes to avoid, plus strategies to fix them.
10 pricing mistakes entrepreneurs make
1. Pricing too low to get the sales
Tempted to keep prices low to attract customers? Think again. Low pricing can devalue your product and attract those who just want low price who aren’t loyal.
What to do instead: Price based on the value you deliver, not the gut feeling you have. Ask yourself, what transformation does my product or service create?
2. Basing prices on costs, not value
Cost-plus pricing may feel logical, but it ignores what’s most important, your customers’ perception of value.
What to do instead: Tie your pricing to outcomes, not inputs. What’s the worth of your solution to your customers?
3. Copying competitors’ prices
Sure, knowing the competition’s price range is helpful, but copying their approach without considering your business could set you back.
What to do instead: Use competitor pricing for context, but set your pricing strategically around your unique value.
4. Not being able to explain why your price is what it is
When customers question your price, can you confidently justify its value? Confusion leads to hesitation and hesitation kills sales.
What to do instead: Develop a simple, clear value story. What benefits and outcomes do your customers get when working with you?
5. Avoiding transparent pricing
Afraid that showing prices will scare people off? The opposite is often true hidden prices can create mistrust.
What to do instead: Be upfront about your pricing. Consider showing a starting range or example packages to set clear expectations.
6. One-size-fits-all pricing
Different customers have different needs and budgets. Offering only one price may alienate potential clients.
What to do instead: Offer tiered pricing to provide options and allow customers to self-select according to fit.
7. Failing to adjust pricing over time
Sticking with the same prices forever could mean you’re undervaluing your expertise or improved offerings.
What to do instead: Review your pricing at least every 6–12 months.
8. Selling features instead of outcomes
People don’t pay for details, they pay for transformation. Listing features can hurt your sales pitch when you forget to connect them to benefits.
What to do instead: Focus on outcomes. Instead of “10 coaching sessions,” say, “Imagine gaining 3 new clients each month.”
9. Discounting too quickly or too often
Discounts may seem like an easy win but can harm your long-term pricing power by training customers to wait for sales.
What to do instead: Replace discounts with bonuses or time-limited offers to create urgency without undermining your pricing.
10. Guessing instead of testing your prices
Feel like you’re randomly picking numbers? You’re not alone. Testing can reveal insights about what your market is willing to pay.
What to do instead: Test different pricing models and collect feedback. Real data from your customers will guide you to the right answer.
Take a moment to reflect on your own pricing
- Are you undervaluing your hard work by pricing too low?
- Do you find explaining your pricing to new clients difficult?
- When was the last time you reviewed your pricing?
Are you ready to refine the way you approach pricing? Explore our online pricing courses for advanced tools and techniques to streamline pricing and increase profitability. We help you to make better pricing decisions.
Ps. Thinking of starting an online business? Here’s why we recommend Kajabi
If you’re launching or scaling an online business, especially in education, coaching, or digital products, Kajabi is our top recommendation.
Why use Kajabi to build your online business??
👉 All-in-one platform to manage your website, digital products, email marketing, and payments in one place
👉 Spend less time on tech setup and more time creating and selling
👉 Work smarter, streamline your workflow, and grow faster
Exclusive offer: Get a 30-day trial (instead of the standard 14 days) using our partner link. Plus, we’ll include a free pricing course: "How To Price Online Courses."
