The Silent Killer of Profit - Pricing Against Yourself
Often, when thinking about how much I should quote for a job, the Devil on my shoulder whispers: "Keep the price down and make sure you get the job Richard!".
But, as regular readers of BD Tips Wednesday and my GSJ Blog will know by now, price is never just about a number. Price is a reflection of the value you are providing to the client; your confidence; and your positioning.
Yet here often we sabotage our business by pricing against ourselves to make sure we win the business at any cost and put food on the table. When what we should be doing is thinking about alternative ways (outside of price alone) of communicating the value we provide to the client in the fee quote proposal so they have a better understanding of our value proposition.
So, what does it mean to "Price Against Yourself"?
Pricing against yourself typically means offering discounts, lowering your price expectations, or undermining your value, before the client pushes back on your initial fee estimate. It’s a self-inflicted wound, one that comes from fear, assumptions, or a lack of confidence in your value proposition.
Picture this:
A lawyer says, “My standard rate is $700 an hour; but for you, I could do it for $550.”
A consultant says, “This project would typically be $30,000; but if that’s too much, I could strip it back to $20,000.”
A partner sends a proposal with their lowest acceptable price, hoping to "win it quickly", leaving no room to move.
In all of the above cases, the client hasn’t even had the chance to object to the price. The service provider has just assumed they needed to go low to win the work.
All of these are classic examples of pricing against yourself.
Why it’s a problem
When you price against yourself, you’re not just losing revenue; you’re sending a signal to the market that you don’t believe in your value.
Here’s what pricing against yourself often communicates:
You’re not confident in what you’re offering.
You expect pushback, which implies overpricing.
You’ll negotiate against yourself again in the future.
Worse, you can’t walk the price back. Once the lower number is out there, it’s the new benchmark. You’ve just capped your value.
What should you be doing instead?
If you're serious about building a sustainable practice, consider using these strategies:
1. Price with confidence.
If you believe the work is worth $50,000, say it. Back it up with outcomes, not just effort.
2. Don’t rush to fill the silence.
Many professionals panic when a client pauses or hesitates. Don’t talk yourself into a discount to avoid awkwardness.
3. Ask value-based questions.
Instead of assuming price sensitivity, ask: “What outcomes matter most to you?” or “What’s most important—speed, cost, or quality?”
4. Offer structured choices.
Present tiered options (e.g., Essential / Premium / Enterprise). This creates a pricing conversation without discounting.
5. Let the client negotiate—don’t pre-negotiate on their behalf.
If they ask, you can talk about scope, timeline, or packaging. But let them ask first.
Final Thought
Pricing is as much about mindset as it is about math. When you price against yourself, you’re signaling insecurity. When you hold your ground, you signal value.
The next time you're tempted to say, “We could reduce the price if needed,” pause and ask yourself: Did the client even ask for that?
If not, you're negotiating against yourself and giving away both money and credibility!
Further Reading
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