PROVEN STRATEGIES to PRICE Traditionally Undervalued Services in 2025: A Step-by-Step GUIDE for Founders

As an entrepreneur with over 20 years of experience across startups, I can confidently say that correctly pricing services - especially those traditionally undervalued - is one of the most overlooked challenges founders face. Whether you’re a service-based business owner trying to break free from market norms or a startup founder entering competitive industries, pricing can make or break your journey.

In 2025, disruptive technologies, evolving consumer expectations, and platforms like Fe/male Switch have given us more data-driven and innovative tools than ever to redefine pricing strategies. Let me take you through a deep, actionable guide on how to price your services effectively, complete with proven tools, expert insights, and lessons from my own experiences.

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Introduction: Why Smart Pricing Strategies Matter

Undervaluation is a silent startup killer. Entrepreneurs often price too low to “win” customers or avoid scaring them away. The result? Margins shrink, businesses struggle to scale, and founders burn out. Pricing isn't just about what you offer - it's about how your customers perceive its value.

Statistics from platforms like 500 Global reveal that underpricing is a common tactic born from fear. But if done strategically, pricing higher can differentiate you from competitors and improve profitability. Let’s dive into how to achieve this with clarity, confidence, and calculated steps.

TOOLS THAT WILL FIX YOUR UNDERPRICING STRATEGIES

1. SANDBOX and PlayPal: Your AI Co-Founders for Idea Validation and Pricing Insights

One of the biggest mistakes startups make is failing to validate their business model and pricing structure before hitting the market. That’s where tools like the SANDBOX and PlayPal come in.

Why These Tools Matter:
SANDBOX deconstructs your startup journey into stages like "Problem," "Idea," "Audience," and "Product." Its structured blocks ensure that you haven’t just guessed your pricing - it’s backed by customer research and market analysis. Meanwhile, PlayPal acts as your AI co-founder, offering real-time advice and tailored feedback - whether it’s adjusting pricing models or rethinking customer personas.

How Fe/male Switch Makes It Simple:
Created by me and my team, SANDBOX was designed to mimic real startup conditions. Pricing is integral to the platform’s methodology, ensuring founders answer critical questions like:

What’s the “willingness to pay” threshold for your target audience?
Can the service be bundled or tiered to increase perceived value?
How does your pricing align with competitors and customer needs?

Result? Startups backed by SANDBOX validate faster and scale smarter.

2. GetJobber for Competitive Pricing and Bundling Strategies

GetJobber offers a detailed guide on 14 pricing strategies tailored for service businesses. If you’re trying to nail competitive or premium pricing, their insights on bundling and value-based pricing are spot-on.

Data Insight: Over 60% of businesses underprice due to market pressure, but bundling can unlock up to 30% higher revenue per customer.

3. McKinsey Tools for Real-Time Digital Pricing

Dynamic pricing models may sound complicated, but McKinsey highlights digital tools that adjust your pricing based on factors like demand spikes or competitor trends. Founding a tech-enabled service? Real-time pricing can boost your relevance (and revenue).

DEEP INSIGHTS: Understanding Perceived Value

Whether you're selling consultancy services or SaaS products, what you charge is only as effective as how your customers perceive it.

Here’s a foundational pricing framework I often teach in workshops:

Assess Customer Willingness to Pay: How much is solving their pain worth? Use real interviews or platforms to gather this data.
Differentiate with Your Value Proposition: Tools like TraderHQ, though stock-focused, show us the impact of showcasing unique benefits to justify premium pricing.
Anchor Pricing Tactically: Startups I’ve mentored achieved 20% higher sales conversions simply by anchoring higher-priced offers first to make others seem like bargains.

Do You Want to Be on This Top List?

CASE STUDY: How SANDBOX Helped Reprice a SaaS Service

Let me share an example close to home. In early 2024, a startup working on a no-code platform for female entrepreneurs was underpricing their services ($29/month) despite industry analysis suggesting $69/month was a competitive benchmark.

Using SANDBOX:
Their team completed the "Product" and "Audience" blocks, pinpointing where competitors charged more by emphasizing outcome-driven benefits (e.g., saving time, unlocking advanced customization).
Outcome:
After adjusting their tiers and messaging, they launched with a restructured $49/$99 model, capturing over 50% of their market segment within the first six months while retaining strong price transparency.

COMMON PRICING MISTAKES (AND SOLUTIONS)

Underestimating the Cost of Delivery:
Many founders fail to factor in hidden costs like support, admin, or tech upgrades. Always aim for at least a 30% margin above direct costs.

Fear-Driven Underpricing:
This is a classic pitfall. Break this mindset by emphasizing ROI during sales conversations. For example, show how paying $500 saves the client thousands annually.

Ignoring Price Transparency Demands:
According to CMS Transparency in Coverage, 88% of consumers demand upfront pricing clarity. Making pricing opaque will cost you trust and customers!

HOW TO PRICE YOUR SERVICES IN 2025: A PRACTICAL GUIDE

Leverage Tools Like SANDBOX for Idea Validation:
Don’t guess your pricing - validate it. Start by completing your basic 'pricing reflection' in the SANDBOX blocks and iterate based on PlayPal feedback.

Test Multiple Price Points:
Platforms like 500 Global reiterate how powerful A/B testing is. Inject AI tools like PlayPal to analyze initial market reactions.

Consider Subscription Tiers:
Tiered pricing is proven for recurring models. Offer distinct levels so you can serve multiple customer personas without compromising your core service value.

Always Bundle High-Value Features:
Customers are more likely to perceive a bundle of services as having a higher value versus standalone services.

PREVENTING PRICING LOSSES: DATA POINTS FROM FMS

At Fe/male Switch, we noticed over 70% of startups in SANDBOX initially underpriced their services by 20%-40%. Through guided workshops and AI-assisted pricing analysis, these startups now boast improved margin structures and greater customer satisfaction scores. Why? They priced based on value, not assumptions.

CONCLUSION: WIN BY OWNING YOUR VALUE

By now, I hope you understand that pricing services isn’t a one-time task - it’s a dynamic strategy. Use tools like SANDBOX and PlayPal to validate ideas, refine tiers, and build profit-driven pricing strategies.

Let’s summarize the key takeaways:

Start with SANDBOX: Answer foundational pricing questions with data-backed insights and AI co-founder guidance.
Embrace Value-Based Pricing: Customers will pay more when they see what they gain in savings, time, or results.
Experiment & Iterate: Don’t fear trial and error - pricing evolution is part of growth.

If you’re ready to stop undervaluing your services and start positioning your startup as a premium, profit-driven brand, click here and let SANDBOX guide your next move. Remember, owning your value is about more than price - it's about confidently living up to it.

Validate your business idea in the Fe/male Switch Sandbox! Test, experiment, and pivot your way to success, all in a risk-free environment with an AI Co-Founder.

FAQ on Pricing Traditionally Undervalued Services

1. Why is pricing traditionally undervalued services such a challenge?

Many entrepreneurs fear losing customers, leading them to underprice their services. However, pricing based on value, rather than assumptions, helps build a sustainable and scalable business. Learn more about fixing underpricing

2. What tools can help me validate and adjust my pricing strategy?

Tools like Fe/male Switch’s SANDBOX and PlayPal are designed to validate business models and pricing strategies. They provide actionable insights to ensure pricing aligns with market research. Explore SANDBOX and PlayPal

3. How can I use bundling to increase revenue?

Bundling services allows businesses to increase perceived value and revenue per customer, often unlocking 30% higher revenue. Learn how bundling works

4. What role does transparency play in pricing?

Transparency in pricing builds trust and aligns with consumer demands for clarity. In fact, 88% of consumers prioritize price transparency in their decision-making. Read more about why pricing clarity matters

5. How can I assess my customers’ willingness to pay?

Conducting customer interviews and analyzing market data are key methods to gauge how much your target audience is willing to pay for your service. Valuing the solution from your customer’s perspective often drives better outcomes.

6. How does value-based pricing maximize profitability?

Value-based pricing aligns what you charge with the perceived value your service provides. This approach improves revenue without sacrificing customer satisfaction. Discover insights on value-based pricing

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8. Should startups consider dynamic pricing strategies?

Dynamic pricing can adjust your rates in real-time based on demand and competitor trends, making it an effective strategy in tech-driven markets. Explore McKinsey’s dynamic pricing tools

9. What common mistakes should I avoid when pricing services?

Avoid underestimating your costs, fear-based underpricing, and ignoring price transparency. These issues can hurt your bottom line and erode customer trust. Learn more about pricing mistakes

10. How does SANDBOX support startups in pricing more effectively?

SANDBOX helps founders answer critical pricing questions through a structured, data-backed approach. By completing SANDBOX stages, startups validate their pricing faster and avoid underpricing pitfalls. See how SANDBOX transforms startups

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities.