RR#131- Are you pricing for security—or growth?

Recently, I had a conversation with a friend about pricing his services.

He’d recently bumped up his rates and hinted at needing to raise them further—but he was stuck. He said he felt like he'd hit the ceiling for what he could charge.

Then, almost in the same breath, he mentioned that people he knew were charging 50% to 100% more for similar services.

We dove into a good discussion about pricing, and as I've shared before, a lot of our pricing biases aren't market-driven—they’re internally driven. Especially if you're a solo service provider. Insecurities, imposter syndrome, or just plain low self-esteem can all keep you from charging what you’re worth.

But it’s not just mindset that plays a role. Of course, market conditions matter too.

If you’re in IT services, for example, and your competitors are charging similar rates for structured offerings, that impacts your pricing strategy. It’s logical. You can't completely ignore what the market will bear.

But there's a third factor I think many people overlook when it comes to pricing—and it's the “mental calculus” we all do when we're about to make a sale.

Let me explain.

The $5k vs. $10k Dilemma: How You Do the Math

Picture this: You’re a consultant used to charging $5k a month for your services, but you know you need to start charging more.

You’ve got a new opportunity on the table, and you feel confident you can close it for $5k, just like you’ve done in the past.

But you don’t have a full book of business right now, and you could really use the extra revenue.

So you start running the numbers in your head.

One voice says, "Lock in that $5k/mo retainer—it's reliable, and you need the revenue. A bird in the hand is worth two in the bush, right?"

But there's another voice—a quieter one, but it’s there—that says, "Sure, $5k is good, but you know it’s not enough to hit your real goals. You know you should be charging more, and if you take this client, you’ll be spread too thin to pursue higher-paying opportunities. So, quote them $10k/mo, even if it means lose the sale.”

Here’s the thing: Both perspectives are valid, depending on your circumstances.

But I’ve found that people who consistently build businesses they love tend to view this equation differently.

The Scarcity vs. Abundance Perspective

Person A looks at the $5k retainer and thinks, “Great! This is secure revenue. Don’t risk losing it by asking for too much. Lock it in.”

Person B looks at the same $5k and thinks, “If I take this, I’ll be so busy with fulfillment that I won’t have time to pursue $10k opportunities. This $5k will keep me from marketing myself, doing outreach, and being available for the bigger opportunities I really want (and need).”

It’s a classic case of scarcity vs. abundance.

Person A is focused on the certainty of the $5k in the here and now. They’re risk-averse and discount future opportunities because they’re uncertain.

Person B, on the other hand, sees the $5k as a certain roadblock to landing a $10k client down the road. They view the $5k not as security, but as an obstacle to winning bigger and better possibilities.

Neither perspective is necessarily right or wrong. It depends on factors like your risk tolerance, how much cash runway you have, and the actions you’re taking to bring in better opportunities (like marketing, outreach, and networking).

But here’s what I am saying: It’s a choice.

How Your Choices Shape Your Pricing

Whether you’re operating from a scarcity mindset or an abundance mindset, that choice has a way of reinforcing itself over time.

If you’re always locking in the “safe” $5k option, you’ll start to build a business that’s dependent on safe, mid-tier clients.

You’ll be too busy to chase bigger fish, and those bigger opportunities will never materialize because you’re not making space for them.

On the other hand, if you start turning down lower-paying work in favor of creating space for higher-value clients, you’ll be primed to grow.

Sure, there’s uncertainty in this approach.

You might not land the $10k client right away. But by staying open to bigger possibilities, you give yourself the chance to evolve, to charge more, and to actually hit those higher revenue goals without burning out.

The mental calculus of pricing isn't just about what the market will bear.

It’s about the mindset you bring to the table.

So, What’s Driving Your Pricing Choices?

I’m not telling you to think one way or another.

What I am saying is this: Evaluate why you’re making the pricing decisions you are.

Are you playing it safe because of legitimate market conditions?

Or are you holding yourself back because of internal fears, doubts, or insecurities?

The next time you're tempted to price your services too low or settle for a rate you know isn’t cutting it, ask yourself this:

Are you playing defense to avoid what you fear, or going on offense to go after what you really want?

Again, I’m not saying one approach is right and the other is wrong. But chances are, you'll end up with the outcome you’re playing toward.

If you play defense, you'll likely avoid your worst fears—but it’s unlikely you'll get what you really want.

If you play offense, you may take on more risk, but your chances of reaching your true goals are a hell of a lot higher.

Hope this helps challenge your mental calculus.