The Pricing Dilemma: How Much Should You Charge?
Creating a profitable pricing strategy for 2025 is one of the most important decisions a business owner can make.
How much should you charge for your products or services?
Many entrepreneurs struggle with pricing, often underpricing themselves or offering unnecessary discounts.
In today’s economic climate, understanding the right pricing strategy is more crucial than ever.
After years of dealing with the economic impacts of COVID-19 and ongoing conflicts, the business environment in Israel and beyond has been anything but stable.
Why Pricing Matters More Than Ever in 2025
As a business consultant with over 22 years of experience, I see pricing come up in almost every meeting, conversation, and business conference lecture.
Despite its importance, most businesses do not have a structured pricing strategy.
Those that do often underprice themselves unnecessarily, while many others frequently offer discounts, become overly flexible, and compromise during negotiations.
This tendency is particularly evident during economic downturns or crises, which have now lasted for five consecutive years.
Common Pricing Mistakes That Hurt Your Business in 2025
In 2020, during the height of the COVID-19 pandemic, many business owners rushed to offer discounts, fearing the shift to remote work, economic uncertainty, and potential client loss.
In many cases, these discounts were offered before customers even asked for them.
Back then, I strongly opposed this approach, and my stance remains the same today.
If the value you provide remains consistent – or even increases due to your accumulated experience and expertise – there is no justification for lowering your prices.
If customer demand for your services remains strong, and if the benefits your clients receive have not diminished, reducing your rates only undermines your business’s worth.
The Ultimate Pricing Dilemma in 2025
In the current economic climate, pricing decisions have become even more complex.
The cost of living in Israel continues to rise, with VAT increasing to 18% and the prices of electricity, gas, fuel, and food escalating.
At the same time, many industries are still in a “war economy,” where demand remains unstable, competition has intensified, and businesses are fighting for every client.
Many business owners mistakenly believe that competition means they need to lower their prices to remain attractive.
They assume that being the cheapest option will make them the most appealing choice for customers.
However, this mindset leads them to negotiate against themselves before even speaking with a client.
Instead of determining their worth based on their expertise and market value, they try to predict what the client will be willing to pay, lowering their pricing expectations before even making an offer.
This approach weakens their negotiating position, often resulting in unprofitable deals.
Profitable Pricing Strategy 2025: Stop Negotiating Against Yourself
The key to effective pricing is shifting your mindset.
Instead of focusing on being the cheapest, focus on being the best.
Not every customer is the right fit for your business, and you should prioritize working with those who truly value your expertise and services.
If your product or service maintains its quality, there is no reason to lower prices.
In fact, as business expenses increase, continuously absorbing these costs without adjusting your rates can harm your long-term sustainability.
Pricing should always be based on the value you provide, rather than external factors like economic trends or competitor rates.
Clients are more likely to appreciate a business that confidently stands by its worth rather than one that reacts to every market fluctuation.
During Times of Crisis, Your Value Increases
Many professionals assume that clients will have less interest in their services during economic downturns, but in reality, the opposite is often true.
When people face uncertainty, they need guidance, stability, and professional expertise more than ever.
Someone who might have sought out couples therapy, anxiety treatment, or parenting advice in stable times will need it even more during times of crisis.
This principle applies across industries.
Instead of assuming that your services are less relevant during difficult periods, consider how your offerings can become even more essential to your clients during these times.
Being the Most Expensive Option Makes You the Most Interesting
When a client reviews multiple proposals, the highest-priced option always stands out.
Even if their initial reaction is that it seems expensive, they will take the time to learn more about you, your expertise, and why you believe your services justify that rate.
This curiosity works in your favor, giving you a unique advantage over competitors who focus solely on undercutting prices.
Pricing Is a Mental Game, Not Just a Financial One
The price you set for your services is not just a number – it reflects your perception of your own value.
Clients often perceive businesses based on how they position themselves, and a higher price signals confidence, expertise, and quality.
While the fear of losing customers to lower-priced competitors is understandable, underpricing yourself has long-term consequences that go beyond lost revenue.
Businesses that operate at a loss or at break-even pricing cannot sustain themselves in the long run.
Correct pricing strategies not only impact profitability but also influence your brand’s reputation and long-term success.
Want to Build a Profitable Pricing Strategy for 2025? Let’s Talk
If you don’t have a structured pricing list, now is the time to create one.
If you feel you are underpricing and need to raise your rates strategically, I can guide you through the process.
Want to stop negotiating against yourself and strengthen your pricing negotiation skills, I can help.
You can reach out to me directly by replying with your phone number, sending an email to yaniv@yanivzaid.com, or calling or messaging me on WhatsApp at +97254-8001200.
I will personally respond to everyone.
With love,
Dr. Yaniv Zaid – “Doctor Persuasion”
Join my community by clicking HERE!
Leave a Reply