14 - Many Entrepreneurs Set Their Prices Too Low Because They Fear Losing Customers
Most entrepreneurs underprice out of fear, but the right customers will pay more for perceived value. This episode reveals a proven pricing formula: solve a painful problem, package it as a transformational outcome, show ROI, and reduce buying risk. Learn how to charge what you’re worth and attract high-value clients.
Many Entrepreneurs Set Their Prices Too Low Because They Fear Losing Customers
Pricing isn’t just a number—it’s a strategy. And most entrepreneurs get it wrong. They price based on cost, competitors, or fear of rejection, instead of focusing on the real driver of high-value sales: perceived value.
If your prices are too low, you aren’t just losing revenue—you’re attracting the wrong clients, limiting your growth, and positioning yourself as a commodity instead of an expert.
Why Pricing Is About Value, Not Cost
Your customers don’t buy based on what it costs you to deliver a product or service. They buy based on what they perceive it’s worth to them. And if they see high value, they’ll gladly pay premium prices.
Here’s how to position your pricing correctly:
1. Solve a Painful Problem
People pay to solve problems, not just buy products. The more urgent and painful the problem, the higher the perceived value of your solution. Are you solving a minor inconvenience or a major business bottleneck?
2. Package a Transformational Outcome
Customers don’t care about your process. They care about the result. Instead of selling time, effort, or services, sell a transformation. Show how your offer will change their business or life in a meaningful way.
3. Demonstrate Clear ROI
Premium prices require proof. Can you show a return on investment? Testimonials, case studies, and data-driven results make it obvious why your price is justified.
4. Reduce Risk & Complexity
People hesitate to buy when they sense risk. Make the decision easier with guarantees, risk-reversal strategies, or a simplified buying process. When the purchase feels “safe,” price resistance disappears.
The Pricing Formula That Works
• Identify a high-value problem
• Package a transformational solution
• Demonstrate ROI and unique value
• Reduce buyer risk with guarantees or simplifications
Apply this, and pricing will no longer be a barrier—it will become your advantage.
Listen to this episode to learn how to charge what you’re truly worth—and scale faster by attracting the right clients.
Highlights:
00:00 The Pricing Secret: Doubling Your Price
00:11 Understanding Perceived Value
00:23 The Price Sweet Spot Formula
00:40 Solving Painful Problems
00:44 Transformational Services and ROI
00:56 Simplifying Your Offer
01:04 Charge What You're Worth
Links:
Website: https://www.marcogrueter.com/
LinkedIn: https://www.linkedin.com/in/marcogrueter/
Transcript:
Many entrepreneurs charge lower prices because they are afraid of losing their customers. But here's the secret, you can double your price and even get more clients if you do this right. Pricing isn't about the cost. It's about the perceived value by the customer. If they see more value, they are happy to pay more.
You and many entrepreneurs know that, but only a few managed to implement it. Successfully. I have a more practical price sweet spot formula that works and helps you redesign your pricing strategy because price primarily depends on the problem you solve and the value the solution provides, but also with the risk involved in collaborating with your company.
So first, solve a very painful problem for your customer. Then increase the value by packaging your service into more a transformational service. Don't sell the work. Sell the outcome and then show even return on investment if possible. Then also reduce the complexity of your offer. Make it easier to work for your customer.
For instance, add a money back guarantee. Apply this formula and charge what you're worth.