Had a client tell me my pricing was 'too cheap' and it changed how I run my whole consulting gig

I do freelance tech consulting for SaaS startups here in Austin, and for the first year I kept my rates at $75 an hour because I was scared of scaring people off. Then last spring, a guy at a co-working space on Rainey Street straight-up told me my pricing made him think I was amateur and he'd pass. That stung, but I bumped my rate to $120 an hour overnight and suddenly I'm getting more serious inquiries, not fewer. I also started charging a flat project fee instead of hourly, which covers scope creep better. My revenue went up about 40% in the 3 months after that change, and my stress went down. Has anyone else dealt with customers judging your price as a signal of quality instead of value?

3 comments

3 Comments

jana_shah18d ago

Feels like you’re making a bigger deal out of one rude client than it really was. Plenty of people charge what they want and don’t need a random stranger to validate it.

joel_jones18d ago

Isn't it wild how that "too cheap" thing plays out in all kinds of places, not just consulting? I notice the same thing when I see a restaurant with really low prices or a mechanic who charges way less than everyone else, my brain immediately thinks there's a catch. It's like our brains are wired to think high price equals high quality, even when we know logically that's not always true. That flat fee switch you made sounds smart, by the way, it forces people to value your time upfront instead of nickel-and-diming you.

jakejones18d ago

Is @jana_shah seriously trying to act like getting stiffed by a client who thought your time was worth less than a pizza isn't a big deal? That's like saying a dentist should just smile when someone pays them with a firm handshake and a "thanks doc." Nobody's asking for a trophy here, Jana, just maybe don't pretend price tags are meaningless just because you've never had a client treat you like a vending machine. The whole "charge what you want" thing works great until the guy who pays you $50 thinks he owns your entire schedule and weekends too. Maybe she'd understand if she ever had to explain to her landlord that her rent check was "validated by her own feelings" instead of actual money.