Understanding the Emotional Nuances of Pricing in Business

Late last year, I encountered a familiar yet poignant reminder of why proper pricing is crucial for any business owner. A restaurant proprietor, with whom I had previously collaborated, contacted me in a state of deep distress. Her sales had plummeted, her financial records were chaotic, and she was contemplating selling her establishment. Additionally, she was in the midst of applying for a line of credit but lacked the clean financial documents required by the bank. During our call, I took the time to listen as she expressed her concerns—an essential approach to building rapport, as sometimes you find yourself acting as an unqualified therapist who happens to be skilled in Excel.

In her situation, the need to update and organize her financial records went beyond mere practicality—it was fundamentally emotional. Her business was critical to her sense of purpose and stability, and the stakes couldn’t have been higher. In the hustle of discussing financials and project scopes, I occasionally forget that there is a real human being behind the numbers. For many small business owners, their enterprise is not just a source of income; it’s deeply personal.

As I examined her financial transactions, the disarray in her records, and the mix of personal expenses, I recognized that this wasn’t going to be a quick fix. My aim was to avoid overwhelming her with an unexpected price—after all, this was a repeat client, a seasoned entrepreneur whom I genuinely enjoyed working with, and who was in urgent need of assistance. At the same time, I didn’t want to undervalue my services and end up in a project that I would later regret.

To calibrate my pricing, I consulted my straightforward pricing worksheet (link provided in the comments for anyone interested). I compiled a proposal for $4,200 and sent it off. To my surprise, she signed the proposal almost immediately, paid the deposit, and expressed that it was the first time in months she felt a sense of relief regarding her business’s issues.

This experience reaffirmed a vital lesson I’ve learned: when clients sense that you truly comprehend their challenges, the price is often a secondary consideration. They are looking for a trusted partner to resolve their problems, especially when they possess the financial means to do so.

In the past, I’ve made the mistake of underpricing similar projects, leading to tough lessons learned. It’s tempting to think, “This will only take X number of hours,” but in reality, the value lies not in the time