As a business coach for creatives, I work with all kinds of creative businesses and entrepreneurs. From botanical artists and fiber artists to musicians and graphic designers, each one is unique. 

But they’ve all struggled with one thing at some point in their journey: pricing.

If you run a creative business, you probably find pricing stressful. It leaves you unsure when quoting a project, wondering if you’re charging too much (or too little), and ultimately doubting the value of your creative work.

• It’s that nervous feeling when someone asks about your rates. 
• The pause before you say your price. 
• Your disappointment when they say it’s more than they thought.

We all wish there were an easy way to know exactly what to charge for our creative offers. While there’s no magic solution, pricing doesn’t have to be so hard.

With the right foundation, you can avoid the most common pricing mistakes as a creative entrepreneur.

How?

By learning from others who’ve been there before. Countless creative business owners have already made these pricing errors, so you don’t have to.

The truth is, while solid pricing absolutely needs to cover your costs and meet your income goals (this isn’t a glorified hobby), it can actually do so much more for you, your business, and yes, even your clients.

Solid pricing allows you to:

• Build a long-lasting business you can’t wait to dive into each day
• Do your best work and take on exciting creative projects without money driving your decisions
• Charge for your time, energy, and expertise with confidence
• Find clients who value what you do and will gladly pay your prices

By understanding the pitfalls others have faced, you can sidestep these issues and set yourself up for success. 

Let’s look at the five biggest pricing mistakes I see creative entrepreneurs make, and how you can avoid them:

#1 Not Factoring in All Costs

You’ve just landed a dream project. You’re excited to get started, but have you really considered all the costs involved?

When you’re passionate about your creative work, it’s easy to forget that passion doesn’t pay the bills. It’s even easier to overlook the big and little things that go into bringing a creative project to life—from subscriptions to your education and experience, to operational costs and more.

So, what can you do to ensure you’ve covered all your bases BEFORE sending that proposal (without nickel-and-diming your clients)?

Include everything

Step back from working in your business to work on your business and take a look at your cash flow. What do you typically spend each month for things like overhead, software, and yes, the value of your time (if you’re not already, this is your reminder to start giving yourself a paycheck!)? 

It’s easy for bills to pile up (or get set on autopay) without you realizing. Make sure to factor in your office rent, your Adobe Creative Suite subscription, and even the coffee you drink while brainstorming ideas. 

What you charge for your services or products needs to add up for your business to make sense. If it doesn’t, you may need to adjust your pricing (higher) or find a way to lower your expenses without sacrificing quality or the financial goals you have for your lifestyle and business.

20% Wiggle Room

Give your pricing some wiggle room. Once you know your all-encompassing expenses, I recommend adding a 20% buffer for unexpected costs. Because life happens, and your pricing should account for that. 

Remember the time your computer crashed mid-project and you had to rush out for very pricey repairs (because your business depended on it)? Yeah, this is so you never have to hesitate or DIY a makeshift solution ever again.

By factoring in all costs and adding some cushion, you ensure that your creative work doesn’t turn into a money pit (AKA a really expensive hobby instead of a profitable business) while giving yourself peace of mind.

But even with all costs accounted for, are you truly charging properly for your creative offers?

Next, we’ll talk about one of the most challenging pricing problems to overcome: undervaluing your expertise.

#2 Undervaluing Your Expertise

I want you to take a moment and think back to when you first started out on this wild ride of entrepreneurship. 

Chances are you were scrappy! 

You made sacrifices to gain experience, which may have even included working for free (gasp!) or at discounted rates to get your feet wet and build your reputation.

And while I’m not one to advocate for working for free as a creative (the starving artist myth is dead!) I can completely understand that back then, you did what you had to do! 

Those sacrifices were necessary. They led you to where you are today and allowed you to become the talented creative you are.

Now, compare that scrappy new entrepreneur to the professional you are today. 

Quite a difference, right?

You’ve spent years honing your skills. Which means you’ve definitely outgrown the need to take on any and every project that comes your way or hustle to prove yourself. 

Your creative work speaks for itself. Your pricing should reflect that.

So how can you align your pricing with your current skills, expertise, and level of customer service? How do you put a price tag on your distinct, one-of-a-kind creativity?

How to put a price on experience

Your pricing isn’t just about the time you spend on a project. It’s about the years of experience you bring to it. That logo you designed in 3 hours? It’s built on countless hours of practice, failed attempts, and lessons learned.

But this is also where many creative entrepreneurs find themselves scratching their heads wondering, “How do I put a price on my experience?!” It can feel really subjective!

This is where value-based pricing steps in.

While it’s relatively easy to put a number on your personal and professional expenses, your expertise is, quite frankly, priceless. That’s why so many creatives struggle with pricing! Your years of experience and unique perspective are hard to quantify.

What you can put a price on, though, is the value and results you provide for your clients and customers. Value-based pricing focuses on the impact of your work, not just the time it takes to complete it or the materials and tools needed to get the job done.

Understanding and communicating the value you bring to the table is key, but it doesn’t happen in isolation. To really understand your value in the marketplace (so your future clients can too!), you need to look beyond your own work. 

COO Tip: Want to learn more about value-based pricing and how to implement it in your creative business? Be sure to read this blog post I wrote to help you get started: Ditch The Hourly Rate

This brings us to our next pricing pitfall.

#3 Ignoring Market Research

You’ve set your prices based on your costs and expertise. But how do they stack up against the competition? More importantly, are they in line with what your ideal clients expect and can reasonably afford?

While you should never price exclusively based on what others in your industry are charging, you do need to factor in their prices and offers. 

Pricing in a vacuum is a recipe for disaster.

So how can you avoid it?

Know what others in your industry are charging

Understanding your competitors’ pricing is crucial—not to copy, but to inform your own pricing strategy. 

For example, let’s say you’re a web designer in New York. In this fictional scenario, your research shows that other web designers are typically charging $5,000-$7,000 for a small business website.

(Sorry web designers! These are made up numbers – I didn’t do the actual market research for you). 

If you decide to price yours at $1,000 it might actually backfire by seriously de-valuing your work. 

Worse yet? 

It could even bring up concerns about your level of expertise or quality.

When you take the time to research what others in your industry are charging, especially those with similar experience and audiences, you can more easily and confidently:

1. Position yourself within the market
2. Understand what clients expect to pay for the services or products you offer
3. Adjust your pricing and positioning to reflect your unique value proposition (AKA what you do and how you do it differently)

Once you understand the going rates, you can decide whether to position yourself in the lower, middle, or higher range based on your experience, unique approach, and the tangible benefits you offer.

Pricing isn’t about matching your competitors—it’s about understanding the value you bring to your clients so you can charge accordingly.

Understand what your ideal clients are willing to pay

Sometimes, it’s more than you think. 

A startup looking for a complete brand overhaul may have budgeted $20,000 – far more than the $5,000 you were planning to charge. This is why knowing your target audience is key!

In fact, these clients aren’t looking for the best deal, they’re just looking for the best fit. So, charging too low could do you and your creative work a real disservice in front of this kind of audience (more on that in the next section).

Survey your audience

One of the best ways to figure out what your ideal audience is thinking (without becoming a mind-reader)? Send out surveys to past clients or conduct informational interviews with your target audience. You might discover that they value quick turnaround times or unlimited revisions more than rock-bottom prices.

Here are some strategies to understand your clients’ willingness to pay:

1. Review past projects and client feedback
2. Research industry reports and case studies
3. Connect with potential clients at speaking engagements or networking events
4. Use social media polls or Q&A sessions

Market research helps you price competitively and attractively. But once you’ve set those prices, there’s a temptation that can undermine all your hard work. 

Let’s talk about the danger of discounts.

#4 Offering Too Many Discounts

“50% off your first project!” “End of summer sale!” 

Sound familiar? 

While these offers might seem like a great way to attract clients, and may be tempting especially during slower seasons, they’re often a slippery slope.

Constant sales don’t just devalue your work—they train clients to wait for the next discount.

Value first

Instead of slashing prices, focus on communicating the value you provide (are you starting to sense a theme?). Highlight the ROI (Return on Investment) of your work. 

Did your last website design increase the client’s conversions by 30%? Maybe last year’s copywriting project still helps your client bring in an extra 5-figures each month. That’s worth far more than a one-time 20% discount.

Discount on purpose

While I often discourage my coaching clients from over-using discounts, I acknowledge there is a time and place!

If you do decide to offer discounts, make them rare and meaningful. A loyalty discount for a long-term client or a referral reward can strengthen relationships without devaluing your work.

Add ons > discounts

You can also consider other ways to incentivize sales outside of giving discounts. For instance, instead of offering a blanket 25% off, consider adding value. Could you throw in a social media kit or a strategy call with that new logo design? This add-on strategy maintains your price integrity while still giving the client additional value.

Pricing strategy isn’t a set-it-and-forget-it task. As your business evolves, so should your prices. This leads us to our last common pricing mistake.

#5 Not Reviewing and Adjusting Prices Regularly

Remember in mistake #2, we talked about how much you’ve grown since you started? Well, your prices should grow too. But it’s easy to forget to update them.

When you’re busy creating, it’s hard to step back and see how far you’ve come. That’s why it’s important to set aside time to look at your prices regularly.

Your skills grow. Your expenses change. Your prices should reflect that.

Think about it:

• Have you learned new skills?
• Are you faster at what you do now?
• Do your projects turn out even better than before?

If you answered yes to any of these, it might be time to raise your prices.

Here’s what you can do:

• Pick a day each year to look at your prices. Maybe January 1st to start the new year right.
• When you learn something new that makes your work better, think about charging more.
• Look at your costs. If they’ve gone up, your prices might need to as well. Make this a quarterly rhythm.
• Think about the great results you’ve given your recent clients. If you’re doing more for them, you should charge more too.

Checking your prices regularly helps keep your business healthy as it grows. It also stops you from suddenly realizing you’re charging way too little.

Knowing these common mistakes is great. But actually setting prices that work for you and your business? That’s where most creatives get stuck. Let’s look at some easy, effective ways to put what we’ve learned into action.

From Pricing Panic to Profit

If you’ve been nodding along, feeling that familiar tightness in your chest when you think about pricing, take a deep breath. What I’m about to share could be the game-changer you’ve been searching for.

Introducing “Pricing for Profit” – a mini-course designed to transform your pricing from a source of stress to a cornerstone of your business success.

Picture this:

• You open an email inquiry, and instead of dread, you feel a surge of excitement.
• You hop on a call with a potential client, and your voice is steady as you share your rates.
• You send off a proposal, confident that your pricing reflects your true value.

This isn’t a far-off dream. It’s the reality waiting for you on the other side of “Pricing for Profit.”

In this course, you’ll learn:

• How to calculate rates that reflect your true value (and cover your expenses)
• Techniques to package your products or services in a way that attracts ideal clients
• Strategies to present your prices with unwavering confidence
• Methods to handle objections without undermining your value

Now, you might be thinking, “But I’m not a numbers person,” or “What if I lose clients?”

I hear you. That’s exactly why this course exists. It’s not about turning you into a cold, calculating pricing machine. It’s about empowering your creativity with the tools to thrive in the business world.

So here’s my question to you: Are you ready to finally build the thriving creative business you deserve?