How Much Should I Be Charging for My Service? (The Honest Guide)

You’re Probably Undercharging

If you’re reading this article, there’s a good chance you’re not charging enough.

This isn’t a criticism — it’s almost universal. Most service-based business owners set prices based on what feels “reasonable,” what a competitor charges, or what they think clients will accept. None of these are the right inputs.

The result: you’re working full weeks and still not making the money you expected when you went into business for yourself.

Let’s fix that.

Why Undercharging Happens

Before we talk about how to price correctly, it’s worth understanding why so many business owners underprice:

Fear of rejection. We price low to avoid the discomfort of someone saying no. But a lower price attracts clients who are price-focused — and price-focused clients are usually the most demanding and the least satisfied.

Comparison to competitors. You look at what others charge and match or undercut. The problem: you don’t know if those competitors are actually profitable.

Trading time for money thinking. You calculate how many hours something takes and set a price based on an hourly rate. This ignores the value you’re delivering, the expertise you’ve built over years, and the outcome you’re creating for the client.

Imposter syndrome. You don’t feel experienced enough, credentialed enough, or established enough to charge a premium. So you charge a beginner’s rate while delivering expert work.

The Right Way to Think About Pricing

The question isn’t “what is my time worth?” The question is “what is the outcome I deliver worth to the client?”

A marketing consultant who generates $200,000 in new revenue for a business isn’t worth $150/hour. They’re worth a significant percentage of that $200,000.

A bookkeeper who saves a business owner 10 hours of stress per week isn’t worth minimum wage. They’re worth the value of those 10 hours being redirected to the owner’s highest-value activities.

Reframe every pricing conversation around the outcome, not the input.

The Pricing Formula for Service Businesses

Here’s a simple framework:

Floor price: The minimum you need to charge to cover your costs, pay yourself adequately, and run a sustainable business. If you don’t know this number, calculate it now. Add up your business expenses, divide by your available working hours, then double it (because not all hours are billable).

Market rate: What established, reputable competitors charge. Not the cheapest in your market — the ones doing good work and staying busy.

Value price: What the outcome is worth to the client. This is the ceiling. For most service businesses, there’s significant room between market rate and true value price.

Where you should price: Somewhere between market rate and value price — leaning toward value price if you have results to prove your work.

Practical Benchmarks by Industry

A rough guide for service businesses in Brisbane:

• Trades (plumber, electrician, builder): $90–$150/hr for standard work; project rates 30–40% above hourly equivalent for complexity and expertise
• Marketing consultant/agency: $150–$350/hr; retainer projects $3,000–$15,000/month depending on scope
• Graphic designer: $80–$150/hr; project rates vary widely
• Photographer: $250–$500/hr for commercial work; day rates $1,500–$4,000
• Business coach/consultant: $200–$500/hr; program-based pricing $3,000–$15,000+
• Copywriter: $100–$250/hr; project-based often preferred
• Web developer: $100–$200/hr; project-based for defined scope

These are market rates, not ceilings. If you have strong results, a specialisation, or a strong personal brand — charge above these.

How to Raise Your Prices Without Losing Clients

If you’re currently undercharging and want to move to better pricing:

1. Don’t apologise for it. When you raise prices, don’t frame it as a necessary evil. Frame it as a reflection of the value you deliver. Confident pricing communicates confidence in your work.

2. Give existing clients notice. Inform current clients 30–60 days before the price increase takes effect. Give them the option to lock in their current rate for a defined period if they commit.

3. Raise prices on new clients first. Quote new clients at your new rate. Once that feels normal, transition existing clients.

4. Expect some clients to leave. Some will. These are usually the clients taking the most of your time for the least return. Their departure creates capacity for better clients at better rates.

5. Make the value obvious. If you’re raising prices, make sure your service delivery, communication, and results clearly justify the new rate. The price increase is an opportunity to tighten up your entire client experience.

The Test

Here’s a simple test for whether you’re priced correctly: if nobody is pushing back on your prices, you’re too cheap.

Not every client should be fine with your rate. You should occasionally have a prospect say “that’s more than I expected” — and then sign anyway because your positioning and proof justified it. If everyone immediately accepts your quote without hesitation, you have room to charge more.

The Bottom Line

Undercharging doesn’t just hurt your revenue. It attracts the wrong clients, creates resentment, and positions you as a commodity rather than an expert.

Know your floor. Know your value. Charge accordingly.

And if you need help positioning your business to attract clients who will pay premium rates — that’s exactly what we do.