Why Discounting Your Rates is Sabotaging Your Success
Stop cutting your worth to win clients. Here’s how valuing yourself can transform your business.
If you’re constantly slashing your rates to win clients, you’re doing yourself a big disservice. Charging for your true value—not discounts—isn’t just a nicety; it’s a game-changer.
When times get tough, lowering prices can feel like the fastest way to keep work flowing. I get it—we live in a world addicted to discounts, where even luxury brands throw in “limited-time” sales. And for freelancers, there’s an extra pressure. Studies prove that around 60% of freelancers feel they’re underpaid for the value they bring. It’s natural to think, “Maybe I just need to lower my rate.”
But here’s the problem: when you make discounts your go-to strategy, it drains you fast. You’re grinding through long hours, pouring yourself into every project—and yet, your bank account doesn’t reflect all that effort. You’re stuck with the reality of overwork, being undervalued, and burnout.
Frustrating, right?
You spend long days and hours working for half the reward. And the clients you attract want even more from you. They often don’t see the value of your work. Instead, they can be more demanding and less appreciative of the skills and creativity you bring to the table.
Here’s What Most People Do (And Why It Doesn’t Work)
If you’re trying to win clients without boosting your prices, here’s what usually happens:
You Lower Your Rates Again and Again
Slashing prices is typically a knee-jerk reaction to competition. But continually dropping your rates devalues your work according to potential clients. Instead of appearing more accessible, you just appear replaceable. Research by the Freelancers Union shows that freelancers who underprice themselves consistently attract more “difficult” clients—those who demand more for less and don’t respect boundaries.You Add in Freebies and Extras
Freelancers throw in all sorts of “bonuses”—extra revisions, added consulting calls, quick turnarounds—for free, thinking it’ll sweeten the deal. The reality? It usually goes unappreciated and unacknowledged. It’s like putting on a Broadway-level performance for an audience of people scrolling on their phones. Freebies are only a way to attract clients that expect more and respect less.Adjust Prices and Regret Quotes
Each time you send a discounted quote, you’re hit with immediate regret, hoping they won’t accept it. You want the business but feel uneasy about the inconsistency of these offers. It leaves you on shaky ground, as if your rates somehow define your worth.
But what happens next? You wind up feeling:
Underpaid because no discount can make up for the hours lost or skills undervalued.
Undervalued because clients attracted to low prices often fail to see your real talent.
Defeated, ready to give up because it seems like no one will pay what you’re worth.
How I Broke Free of the Discount Trap
I’ve been there. When I started as a web designer, I thought undercutting my competitors was the only way to attract clients. But the clients were frustrating, and I ended up resentful of the relationship. My “affordable” rates were leading me into the very burnout I was trying to avoid. It’s a vicious cycle.
Then I asked myself: What if instead of trying to be “the cheapest,” I focused on being “the best”?
Turns out, this was the key. Owning my worth wasn’t about bragging; it was about respecting the hard work I was putting in and communicating that to clients.
Why Value-Based Pricing Works
Value-based pricing flips the script. Instead of thinking about “how little can I charge?” you start thinking, “what’s the value of the results I deliver?” Here’s why it works:
Quality Clients Respect Quality Prices
Clients willing to pay for value often respect your time, work, and boundaries. Research shows that clients who pay premium rates tend to expect less constant communication and micromanagement than those who pay less. Think of this as a win-win.It Creates a Sustainable Cycle
Charging rates that reflect your value gives you the resources to keep investing in your business—whether that’s new skills, better software, or hiring help when you need it. You’re building something sustainable instead of working for survival.It Attracts Loyalty, Not Just Transactions
Clients who value your expertise don’t see you as a “cheap option”; they see you as a long-term partner. This loyalty translates to repeat business and referrals. They become your biggest ambassadors.
Where to Start With Charging Your Value?
You can’t wake up tomorrow and increase your prices tenfold. You’ll tank the whole system. So start by gradually moving your clients to small pricing increases and add all new clients at the value-based rates.
1. Add In Your “It” Factor
Each of us has something different to offer — fast turn times, creative ideas, or the personal touch you bring. Take a beat to figure out what you bring to the table that others don’t. This is your “special sauce.” Own it.
Pro Tip: Ask past clients why they were attracted to you. Look for any common themes or praise you keep hearing—those are indicators of your unique value.
2. Small Increases At Regular Intervals
Don’t overhaul your pricing overnight. Start with the most in-demand service and increase regularly — say 10%. This gives you the confidence to charge value-based prices without overwhelming or blindsiding current clients.
Pro Tip: Every five new clients, bump up your rates a little more. Take note of any changes in client interactions. Often, higher rates naturally weed out the clients who won’t appreciate your work.
3. Detach Your Self-Worth from Your Price
This is probably the hardest step but also the most important. What you charge is not a reflection of you as a person. It’s a reflection of what you deliver and the value you bring with your expertise. Clients are not paying for you-they are paying for the skills you build and the results you deliver.
Mindset Tip: Each time you feel like lowering your rate, remind yourself of the courses you’ve taken, the experiments you have helped and the skills you bring with consistency. Treat your pricing like the business decision it is.
4. Turn Freebies to Value Adds
Instead of giving away work for free, reframe these “extras” as valuable enhancements to the project. Package them as part of your expertise. For example, offer a complimentary 30-minute consultation to kick off the project or a personalized summary report at the end. This way, clients feel they’re receiving added value, not freebies. When you position these elements as integral parts of the big picture, they take on a whole new level of importance.
Pro Tip: Frame any extras as part of your “premium service”—they’re not free, they’re value-packed additions. By highlighting the specific benefits, you reinforce their value and position yourself as a thorough, detail-oriented professional.
Build Your Business on Respect, Not Discounts
Moving away from discounted pricing is not easy. It means that you are narrowing the field, moving away from bargain hunters and tire kickers. But what you will gain is clients who respect what you bring to the table. You deserve to work with clients who see you as a partner, not a commodity.
So, here’s your next step: Pick one service, and raise the rate. Start small and watch what happens. Will every client stay? Maybe not. But the ones who do will appreciate that you are looking out for them by banking on your worth.
Final Takeaway:
Charging what you are worth is a mindset issue — the value and skill set you bring, not the price you charge. It’s your confidence in what you are bringing to the client is worth the investment and price of admission.
Raise your rates, trust your worth, and remember—quality clients want quality service.