Why Underpricing Happens

Underpricing often stems from one or more of the following reasons:

• Fear of Losing Clients. New business owners may believe that lower prices will make their offerings more appealing, especially when competing with established industries.
• Lack of Confidence in Value. Some entrepreneurs aren’t sure how much their expertise or products are really worth, so they feel the need to prove themselves by offering discounts.
• Short-Term Growth Mindset. When your focus shifts towards attracting clients quickly, it can overshadow the importance of sustainable revenue and profitability.