The boutique professional's pricing conundrum
You've just sent a quote—but the hard part isn't over. You already feel bad about the price, even though you've undercharged. You add in a few extras, "just to be nice". The client happily agrees, but instead of relief, all you feel is dread. You'll work 15 hours, earn less than minimum wage, and chalk it up as a win. Welcome to the pricing guilt cycle.
What if I'm undervaluing my work? What if clients think my prices are too high? What if I misjudged the time and effort I need to put into this project, and what if my prices reflect that? Despite professional success, it is very common for boutique business owners to struggle when it comes to pricing their businesses; the phenomenon is known as "pricing guilt."
Have you ever wondered why, when raise your prices by $50, you immediately feel like you’re committing fraud? Pricing guilt is what happens when you care too much—about being liked, about being "accessible", about not seeming greedy— it stems from worries about overpricing and taking advantage of customers for financial gain, however irrational they may be.
The feeling tends to have real effects on the way boutique businesses price their services, leading to internal pricing barriers. Factors including imposter syndrome, lack of information, and client perception all contribute, and breaking down these barriers is essential to overcoming pricing guilt.
When creativity meets doubt: overcoming imposter syndrome
Creatives are constantly fighting a mental battle: no matter how hard you work, your prices may never feel 'valid' enough.
According to the Oxford English Dictionary, imposter syndrome is defined as “the persistent inability to believe that one's success is deserved or has been legitimately achieved as a result of one's own efforts or skills.”
The beast thrives in environments focused on achievement and success, causing it to be common among entrepreneurs who are managing expectations and holding themselves to high standards. Among those affected by the condition, women experience feelings of imposter syndrome at disproportionate rates to men; a study conducted by KPMG found that 75% of female executives across all industries have felt strong feelings of imposter syndrome at some point in their careers.
This number is especially relevant in the creative sphere, where women make up the majority of relevant industries. A sample conducted by IBTM found that almost 77% of the event planning industry professionals are women. Interior design numbers hover around 70%, and the personal styling percentage is believed to be even higher. With imposter syndrome proven to be affecting professionals, especially women, pricing guilt is a relevant issue in creative industries.
"The main reason this happens is due to cognitive dissonance... If deep down, someone believes, 'I’m not as good as people think,' but they are still being hired and praised, their brain struggles to reconcile the gap," said Dr. Ann Monis, a practicing clinical and forensic psychologist. "To resolve this conflict, many subconsciously adjust their actions to match their doubts, often by charging less. Lowering prices reinforces the belief that they are not truly an expert, making it feel less like they are deceiving others."
The evidence is clear; say, for example, someone is looking into a personal stylist. Instead of charging your client $100 for a consultation, you give away your time for free. Looking at the consultation and wardrobe refresh as a consumer, they may think the prices are a steal. That's because they are. Instead of feeling elated when they purchase your services, do you feel something closer to relief? The mindset, no matter how untrue, is that someone is taking a chance on you and that your price should reflect their generosity.
One discovery from the UK Office for National Statistics even found that women carry out an overall average of 60% more unpaid work than men, solidifying that women are undervaluing themselves and their own work. Especially in the creative industry, where women make up such a large percentage, applying this statistic feels jarring.
But how do creatives overcome imposter syndrome? Dr. Savana Howe, founder of Dr. Howe Psychology, suggests taking these proactive steps:
Establish facts from feelings: "Just because you feel like an imposter doesn’t mean you are one. Keep track of client testimonials, successful projects, and moments when you nailed it. Proof is powerful."
Set prices based on results: "Think about the value you bring. Does your work help clients grow their brand, feel more confident, or simplify their lives? That’s worth something—charge for it."
Practice giving quotes: "If quoting your price makes you nervous, rehearse it until it feels natural. Confidence is contagious—when you own your worth, clients pick up on that."
Reframe rejection: "Not everyone will be able to afford you, and that’s okay. It doesn’t mean you’re too expensive—it means they’re not your ideal client."
Price smarter, not harder: knowledge is key
Have you ever felt like you don't even know where to start? Another factor contributing to pricing issues is a lack of information on how to properly price a product or service. Different boutique businesses come with different goals, and there's no one-size-fits-all pricing model.
"I remember mentoring a talented interior designer who decorated an entire boutique hotel for the price of a mid-range sofa. She loved the project but was constantly stressed, underpaid, and overlooked," said Carla Niña Pornelos, general manager of contemporary art platform Wardnasse. "Many creatives are misinformed about pricing, assuming affordability equals accessibility. In truth, confident pricing signals professionalism. As someone who works closely with artists and design professionals, I’ve seen time and again how strategic pricing elevates your brand and invites better opportunities."
Cost miscalculation is dangerous; even with strong sales, businesses will struggle to meet the goals they've set for profit margin, and they may experience losses. Without effectively understanding profit, cost and turnover, boutique business owners can't effectively plan the financial stability of the company.
Luckily, there are plenty of resources aiming to help boutique business owners price their businesses. Investing in a pricing strategist or consultant, for example, takes some of the pressure off of the business owner.
"By analyzing market trends, competitor positioning, and customer behavior, a strategist ensures pricing aligns with business goals while maximizing margins," said Anupa Rongala, CEO of Invensis Technologies. "The right pricing strategy is not just about charging more, it's about aligning price with value, creating sustainable growth, and building a brand that customers trust."
Matt Little, founder and managing director of Festoon House, a brand specializing in outdoor lighting, invested in a pricing strategist early on.
"For us, the biggest benefit was understanding our value proposition. The strategist helped us understand how to price our products to reflect the quality and longevity of our lights, while also remaining competitive," he said. "Another huge advantage was navigating the competitive landscape. The strategist helped us identify our ideal customer and fine-tune our pricing to appeal to that specific segment, allowing us to stand out from the mass-market retailers."
Whether your unique solution is investing in a strategist or conducting your own research, understanding the costs and benefits of different pricing models is essential to pricing a business.
Cracking the client code: understanding their mindset
A potential client who sees that your prices are on the floor? They aren't getting excited, they're getting concerned.
While setting prices too low is common in the creative industry, the benefits are few and far between. To begin, the practice often has the opposite psychological affect on clients than intended. Instead of becoming more drawn to a business' product or service, clients often see too-low pricing as a sign of low quality work.
Undervaluing your work is also ineffective for building client loyalty. Although low prices may initially attract some customers, they will go elsewhere when lower prices become available. Instead of focusing on the lowest possible prices, small businesses need to focus on properly identifying the target audience and creating effective retainment strategies (Cant & Mpolokeng Sephapo, 2016).
"Raising prices wasn’t just about income; it was about alignment. Underpricing attracted clients who micromanaged, negotiated every detail, and treated [my mentee] as a service provider rather than a creative partner," Carla added. "But once she charged her worth, her client base shifted to thoughtful, design-savvy individuals who understood the value of her work. It was eye-opening to realize that “affordable” wasn’t generous—it was a disservice to both her and her clients... When she finally doubled her rates, something unexpected happened—she started getting inquiries from clients who valued her creativity, trusted her expertise, and respected her time."
Therefore, when creatives set lower prices, it needs to be a completely personal decision. Instead of worrying about what clients will do with lower prices, think about how the business would benefit or detriment from their implementation.
In a journal article published in the University of California Press, successful freelancer Suzy Bills and Aaron Ostler had this to say about low rates:
“If you’ll personally benefit, the lower rate might be okay; otherwise, you’ll simply be giving a discount, which I don’t recommend doing. The problem with giving discounts is that you’re setting the precedent that you’re willing to work for less. The individual may then expect to get a discount on a future project or might tell others that you’ll give discounts when pressed. Giving discounts also suggests that your services aren’t as valuable as your standard rate indicates, since you’re willing to lower it” (Bills & Ostler, 2021).
From strategy to success: put pricing into practice
Now that we've covered the factors and considerations of pricing guilt, the hardest question is among us: how should boutique business owners price your businesses?
Despite what feels like an overwhelming number of options, most businesses take the approach of either pricing per hour or pricing per project. For those having trouble deciding which would be better, Visualist explains the pros and cons of each option here.
No matter which pricing method business owners lean towards, keeping in mind the signs of pricing guilt and being aware of how to combat it are key to a successful business model; if you're ever struggling, just remember these affirmations:
Pricing guilt is psychological: The first step to overcoming pricing guilt is understanding its nature. While your feelings are valid, they do not reflect the true value of your work.
Information is power: Calculating your perfect price is a science, and it's one that you will master with time if you haven't already. Understanding your value combats the psychological feelings of guilt.
Clients recognize good work: Never be afraid to charge what you're worth. The right clients can recognize the incredible output they're paying for.
Without undervaluing their work, the sky is the limit for creatives. If you're booked, you're in demand. If you're in demand, your pricing should reflect that.
