Why Some People Charge Less in Business and Why "Knowing Your Worth" Matters

In any business, you'll come across a wide range of pricing strategies. Some people will “accept anything” and charge less, while others firmly believe in “knowing your worth” and stand by their pricing. But what’s the difference? Why do some people charge less, and why does it matter so much for those of us who know our value?

First, let me start by saying this: feel free to correct me in the comments if you think I’m wrong (you know you will!). But in my experience, those who tend to charge less and take any job usually have some form of financial backing. This could mean they’ve been running their business for a while and are comfortable now, have a financial cushion from savings, or perhaps a spouse or family member who can help them out if needed.

For many of us who started businesses with fewer financial resources or while balancing family life, the need for a backup plan is real. When my kids were younger, we didn’t have a lot of extra money, and I had to make sure that I always had a backup income. I didn’t have to make a ton of money, but those small jobs—whether it was $20, $30, $50, or $100—were everything. As a stay-at-home mom, it was either that or go back to work outside the home, which I didn’t want to do.

So, when you see others charging low rates or accepting jobs that don’t seem to pay well, try not to judge too quickly. It’s possible that they need that income, especially if making $10 or $20 means the difference between eating dinner or not that night. 

For me, personally, I’ve always had a supportive husband with a 9-to-5 job. We’d be “okay” without my income, so I’ve always had a safety net to fall back on. Because of this, I’ve been more comfortable turning down certain orders or clients who weren’t a good fit for my business.

However, I understand that not everyone has the same situation. For those who are just starting out or might be struggling financially, taking that $20 gig might be the difference between making something and making nothing. Even if it means working two hours for that small amount, it's still something. For them, the thought of making zero dollars an hour is more daunting than underpricing their work.

But here’s the key takeaway: knowing your worth is so important, and it doesn’t just affect your business. It also affects your mental and emotional well-being. When you charge what you deserve, you not only set a standard for your clients but also set a standard for yourself. And while it’s perfectly fine to accept smaller jobs if that’s where you are in your journey, it’s just as important to remember that there’s always room to grow and improve your pricing as your skills and business develop.

So, the next time you see someone accepting a low-paying gig, try to understand their situation before jumping to conclusions. And for those of us who can afford to charge higher rates, remember that the goal is to raise the bar—not just for ourselves but for the industry as a whole.

We all have our reasons for pricing the way we do, but ultimately, the goal is to find balance—charging what you're worth, while also considering your unique circumstances. If you’re in a place where you can stand firm on your pricing, I say go for it! Your value is worth it.

Let me know your thoughts in the comments. What’s your experience with pricing, and how has it shaped your business journey?