Why Women Shortchange Themselves [What You Should Be Charging For Your Services]
It’s no secret that there’s been a gender wage gap since women first entered the workforce.
And, when it comes to charging what they’re worth, women entrepreneurs often still fall short.
Reasons vary, but a lack of self-confidence may top the list.
We think it’s time to bridge the gap between self-worth and setting prices…
…and give you an idea of what you should be charging for your products and services.
(Chances are, it’s A LOT more than what you’re charging now!)
History of the gender wage gap
The origin of the gender wage gap can be traced back to when women were first given the option to enter the workforce instead of staying home to care for the house and family.
They primarily worked specific jobs – those considered “women’s work.”
These were mostly care-taking jobs, like teaching, sewing, and cooking. Since these were jobs for women, they were lower paying than the jobs held only by men.
Over the years, these care-taking jobs have consistently offered lower pay and fewer benefits than more male-dominated jobs, even though they are no longer “women-only” professions. The gender wage gap is even more evident with men still making more than women in these same positions!
In 2021 women across all industries made $0.82 for every dollar a man made, which is only one cent more than in 2020.
(It’s important to point out this gap is even more significant for women of color.)
So, change is happening, but nowhere near the rate we want it to be.
Why women accept and charge less than men
No surprise, a lot of why women charge so little for their work comes down to their mindset.
Generally speaking, men have a natural confidence that seems to be instilled in them from birth. They’re usually more assertive and self-assured than women, even overconfident at times.
Women tend to negotiate much lower salaries – if they even negotiate at all! We often take what we are offered without a second thought, while men are four times as likely to initiate a salary negotiation.
This confidence barrier translates over to the entrepreneurial world as well, with many female entrepreneurs charging much less than their male counterparts.
Much of this relates to how a business owner sees her self-worth and that of her products or services.
Women commonly believe:
“Someone is doing it better.”
Or,
“My products and services aren’t worth that much.”
They fear judgment from others for setting their prices too high:
“What would others say?”
They worry they might turn customers away:
“No one would pay these prices in a million years.”
They get scared to ask for what they’re worth because they lack confidence in themselves and their work.
They are unclear on the transformation they offer their buyers (what each person gets out of their services), they are unclear on why people should be buying from them, and they are unclear on how to make their dream salary a reality.
So, let’s clear a few things up, shall we?
How charging less DOES NOT give you more
Charging too little for your services not only hurts your wallet, but it hurts the number of clients you could be bringing in as well.
Setting your prices too low can raise red flags for your buyers.
They start to wonder why your prices are so much lower than your competitors.
Do you deliver poor-quality work? Do you “ghost” your clients regularly?
And the last question you would ever want to hear as a business owner – “Is this a scam?!”
Your clients start believing there MUST be a reason why you charge so little.
And before you know it, you’re losing clients – not because you’re charging too much – but because you’re charging too little!
You give the wrong message to your buyers – that your work is low-grade, you aren’t much of an expert in your field, and you won’t offer your buyers much value.
This messaging and charging bottom-dollar for your work also attracts clients who are only willing to pay bottom-dollar. These people generally look for shortcuts, have few boundaries, and don’t have much respect for your work or value.
A lack of respect for yourself and work = A lack of respect from your buyers.
What should you be charging?
We women (and those who identify as such) need to be charging much more for our work, for our sake and our businesses’.
And before you start panicking at even just the THOUGHT of raising your prices, know that it doesn’t have to happen right away.
It’s actually best that you don’t choose a random number and immediately start slapping it all over your website and content.
Remember, what you charge relates to your self-worth and confidence.
Raising your prices won’t help if you’re sitting around second-guessing them and backpedaling with discounts at your client’s request.
Let’s look at some helpful ways you can slide into the process of raising your prices without setting off panic alarms and sabotaging the results.
Understand the financial picture of your business
Get a clear view of how money is coming into your business and where money is going out.
Sit down with your finances and make sure that your business profit is more than your investment.
If you’re in the beginning stages of your business, sometimes your investment may be larger than your profit for a little while. That’s okay, as long as you at least have your prices set so that, eventually, it’s easy and doable for you to make a month’s profit without having to make a bajillion sales to do it.
Take control of your finances. See if your money is going somewhere that isn’t necessary for you and your business right now. Close up those money holes and prioritize your spending.
Get to a place where you feel comfortable with and excited about your finances!Develop boundaries in your business
Learn when to say no. If you say yes to every opportunity and every client, chances are you’ll drain your energy and won’t be fully present for the people you’re serving. Pick and choose which clients and opportunities align best with your business.
This isn’t to say you should start being too picky with your buyers (not every client has to be an “ideal” client) but be conscious of where you’re devoting your energy and how you can best serve without burning yourself out.Get clear on your message
What makes you different from other businesses in your niche? What makes you unique? Why would people want to buy from you and not someone else? What transformation do you offer your buyers? How do you change their lives for the better? – even in small ways?
Get really clear on who you are, what your business is, your message, and how you want your buyers to feel when they see or think about your business.
Once you understand the answers to these questions, it’s much easier to market your business with others because you know the “why” behind it all. Plus, you get a better idea of what your products or services are worth.
It’s a lot easier to raise your prices when you believe in your work.Confidence is KEY
Believe in what you’re offering your buyers!
If you don’t have total faith in yourself and your services, how can you expect someone else to?
Buyers notice when you have wishy-washy energy.
The energy you hold around your business is the energy that will translate over to your clients during their buying process. You want them to have an enjoyable experience, not a questionable or uncomfortable one.
Your clients are relying on you to help them decide if your product can help them or not. Show them how it can.
Not only is having confidence in your business visible to your buyers, but it can also:Motivate you to find new opportunities and start getting curious about your real potential
Ease your fear and anxiety around taking action when it comes to your desires and goals
Help you identify and resolve setbacks in your business with calm energy and clear focus
And give you a clear idea of who you are and what you bring to the table.
Work on your mindset
Get down and dirty in the gunky-funky feelings of why you feel so uncomfortable with raising your prices.
Where are you holding back? How is fear holding you back? Are you lying to yourself about anything?
Is it actually quite possible for you to hit your goal salary, but you keep yourself from taking action to stay in your comfort zone just a little longer? (We’ve been there, and we see you.)
There are likely some old and stagnant beliefs surrounding your business and your self-worth that need some rewiring.
Courses and self-help books related to business, self-development, and worthiness are great places to start your journey.
They help you improve many areas of your life and open your eyes to possibilities you may have previously overlooked.
The book We Should All Be Millionaires by Rachel Rodgers has an entire chapter on setting your prices in a way that benefits everyone!
The resources are endless.Start charging more
Start with a simple question: What price feels good and excites me?
You want to set your prices at a point that feels exciting but also stretches you outside your comfort zone.
Start by drawing a line. Write down a high number on one end of the line – one that’s hard for you to imagine charging. Then, write the word “FREE” on the opposite end of the line.
Ideally, you want to find the sweet spot on this line.
What number gets you PUMPED, but also doesn’t seem totally unrealistic to you?
The goal is to find a price point that makes you a bit uncomfortable to charge while also feeling like a “Heck YES!” in your intuitive gut.
Getting more practical – don’t be afraid to research what your competitors are charging. Build some evidence to show your stubborn mind what’s possible for you!
Throw some numbers together. How much do you want to earn in a year? How many clients is that? How many clients per month would you need to take on to meet that yearly number?
Do the math and see what your prices need to be to reach your target salary.
And the simplest way to raise your prices? – Just do it!
Raise your prices by 10-20% more today, feel into that pricing, and adjust from there.
Over time, you can transition your current clients into your new pricing however you would like.
But it’s time for you to start charging more for your work and make the money you deserve!
Check out our business planning course to begin working that mindset muscle and build confidence in your business today!
Written by Lara Carney