Am I undercharging for my consulting work?

Direct Answer

Probably, and there's a fast test. If nobody ever hesitates at your number and every client says yes immediately, you're priced under what the work is worth. Undercharging shows up in your calendar and in how you feel about your clients long before it shows up in your revenue.

Leah Neaderthal

Leah Neaderthal

Founder, Smart Gets Paid

Best Move

Look at your last five proposals and count how many people hesitated at the number.

Why It Works

A price nobody ever questions is a price set below what the market and the client would carry.

Next Step

Price your next engagement on the outcome and see what the number comes out at.

What you need to know

If you use it as the floor, fine, but don't use it as the ceiling.

Leah Neaderthal, Smart Gets Paid

What are the signs I'm undercharging?

The signs show up in patterns across engagements, so look at your last five rather than your last one. Here's the list I run with clients:

  • Everyone says yes right away, and no one asks a single question about the number.
  • You've never lost work on price, over years.
  • You're busy and the revenue doesn't reflect it. More work, same income.
  • You add extras without charging for them, and hope your client notices.
  • You feel a flicker of resentment when a client asks for one more thing.
  • You dread sending the invoice, or you check whether they've queried it.
  • Your rate hasn't moved in two years or more.

Three or more of those and you have your answer. The last one is the quietest and the most common: a rate nobody has revisited is a rate set by a version of you who knew less about the work than you do now.

Does an immediate yes mean my price is too low?

An instant yes with no questions usually means you left money on the table, and it's the single most reliable signal in the list. When a client's reaction is "oh, that's fine," they'd allocated more than you asked for.

What the different reactions tell you:

Their reactionWhat it usually means
Immediate yes, no questionsThey had budgeted more. Your number was under it
A pause, then a question about scopeYou're at the edge of the value. This is the healthy one
"That's more than we expected"They had a different figure in mind. It isn't a verdict on you
A no, on budgetWrong client for this engagement, or wrong engagement for this client

When somebody tells you they'd allocated more, that's data you can use. Build the program that fits what they had, add the value to match it, and put the higher number on it. And when a client does hesitate, that reaction belongs to them and not to you.

Should I look at what other consultants charge?

Look, and use what you find as a floor. Knowing the market keeps you from pricing under it by accident. What it can't do is tell you your number, because you can't see the business decision behind anyone else's.

People price their work on financial and personal factors that have nothing to do with you: their costs, who they support, how much work they want, what they need the business to fund. Someone charging a fraction of your rate is solving their own problem, and someone charging ten times your rate is doing the same.

So here are the steps I give people:

  1. Find three or four comparable rates from people doing similar work at a similar level.
  2. Treat the lowest of them as a floor, and move if you're under it.
  3. Ignore the top of the range as a ceiling. Being the most expensive is a position, and it's allowed.
  4. Price the engagement on the outcome anyway, because the number still comes from what the work is worth to the client in front of you.

My episode "Friends don't let friends undercharge for their work" on The Smart Gets Paid podcast works through the same trap from the other direction.

What is undercharging actually costing me?

Undercharging costs you your calendar before it costs you your income, and that's why it takes years to notice. At a low number you need more clients to hit the same revenue, so you take more work, and the work you take is smaller and needs more of you.

The compounding part

  • More engagements, more overhead. Every client carries admin, calls, and scheduling regardless of fee size.
  • Less room to sell. A full delivery calendar leaves no time for the conversations that produce next quarter.
  • Smaller clients, smaller problems. A low fee attracts work with less at stake, which is less interesting and less referable.

The part nobody says out loud

Resentment. You start keeping score, and you feel it when a client asks for something reasonable. That feeling is a pricing signal wearing an emotional costume, and the fix is the number rather than the client. Raising it is its own piece of work.

Leah's take

Women ask me this question hoping I'll say no, you're fine. So let me give you the answer I'd give on a call: if you're asking, you probably are, and asking is the good part.

What I want you to notice is where the question comes from. It rarely comes from looking at the market. It comes from a feeling: that you're working hard and the money doesn't match, or that you heard what somebody else charges and felt a bit sick.

Here's the piece that's specific to us. Exley and Kessler ran experiments on how people describe their own performance and found that women rated themselves 46 out of 100 where equally performing men rated themselves 61. The gap held when they removed differences in confidence, and when they removed any reason to talk yourself up. Nobody performed worse. They just said less about it.

So when you ask whether you're undercharging, you're asking a question about your own value, using the instrument that the research says reads low. Which is why my system doesn't ask you to price your worth. It asks what the outcome is worth to your client. That question has an answer you can go and find out, and it produces a bigger number than the one in your head.

More questions about this topic

What if I'm the most expensive option a client is considering?

Being the most expensive option is a position, and plenty of clients choose it deliberately. What decides it is whether the value is clear enough to make the number make sense. If you're the priciest and you're winning work, your price is doing its job. If you're the priciest and losing every time, the value conversation is where to look first.

Is undercharging always a mindset problem?

No, and treating it as one keeps people stuck. Sometimes the rate is simply old: set years ago and never revisited, with no feeling attached to it at all. Check the mechanical explanation before you go looking for head trash, because a stale number is far quicker to fix than a belief.

Should I raise my rate if I'm fully booked?

A full calendar at your current number is the clearest evidence you have room to move. Being booked out means demand exceeds what you can supply, and price is the lever that resolves that. Raise it on new work first and let the calendar sort itself out.

How do I know if my price is too high?

You'd see it in a pattern: consistently losing work at the proposal stage, with the number named as the reason by clients who otherwise fit. One client saying no on budget tells you almost nothing. A run of well-matched clients all stopping at the same place tells you something worth acting on.

Related pages

Leah Neaderthal

Leah Neaderthal

Leah Neaderthal is the founder of Smart Gets Paid, where she has helped hundreds of women consultants attract more of the clients they want and get paid more for their work. For more than a decade, she has taught women consultants how to bring in clients on purpose and get paid more for their value, through her program, The Academy. She's also the host of The Smart Gets Paid podcast. Learn more at smartgetspaid.com.

www.smartgetspaid.com
Mary G, nonprofit consultant
I just secured a contract for 500% more than I was originally going to quote. I was ready to undervalue my bid and ask for $7,000 but I reached out to Leah and the team for a pep talk and I'm glad I did, because we are now going under contract for $37,500!! I'm stoked!
Denise F, marketing consultant
I was my reviewing my revenue dashboard and it showed that I earned $100K more in 2024 compared to the year before. I joined the Academy in May 2024 and it has transformed my sales approach entirely.
Sarah J, fundraising consultant
We used to book clients just in time to keep income flowing, and we now have a 6-month cushion!

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Leah writes to women running B2B consulting businesses every week, about getting clients on purpose and getting paid for the value of the work.

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