The psychology of pricing
Hello!
Do you feel uncomfortable setting a high price? You are not alone.
Many freelancers struggle with the feeling that they are 'cheating' someone when they put a price tag on their time, skills and experience.
But the fact is: pricing isn't just about numbers - it's about self-esteem, positioning and the psychology of value.
Let's go through 3 psychological principles:
The Anchoring Effect
We humans compare everything. If your first contact with a potential customer is a price of £25,000, then even £18,000 will feel 'reasonable' in comparison. Set your anchor (price) deliberately - and set it high.
Self-image (Impostor Syndrome)
Ask yourself: "Am I setting this price because it's what I'm worth - or because I'm afraid of being denied?"
Remember: you are not expensive - you are clear.
High price = High expectation = High respect
Low prices signal "budget solution". High prices signal expertise.
Dare to stand for quality. Many customers don't want the cheapest - they want the best.
Try this out today:
Make a list of all the results you delivered for previous clients (not just hours, but value).
Develop three price packages: "Basic, Medium, Premium". Many people choose the middle option (psychology trick!).
Set a "no price", that is, a price you won't go below. Your no is also a business strategy.
Final note: You are not a budget option. You are the solution to a problem.
All is well!
Per Hedelin
Co-Founder at Worknode