The Race to the Bottom is a Race You Don't Want to Win
I was sitting in a coffee shop in Paddington last week with a consultant who was on the verge of packing it all in. He’s brilliant at what he does—helping local firms with their staff retention—but he was exhausted. Why? Because he was constantly being outbid by blokes undercutting him by fifty bucks an hour.
He told me, "I have to keep my prices low just to get a foot in the door."
I’ll tell you exactly what I told him: That is a lie. It’s a myth that has been fed to small business owners for decades, and it’s the fastest way to go broke while working 80 hours a week.
If you are a professional service provider—whether you’re an accountant in Chermside, a recruiter in the CBD, or a consultant in Indooroopilly—competing on price is a loser’s game. There will always be someone willing to be cheaper and more miserable than you.
Today, we’re going to bust the myths that keep your bank account smaller than it should be and look at how you can actually start charging what you’re worth without losing your best customers.
Myth #1: "People only care about the price tag"
Most business owners think that if they raise their rates by 20%, their phone will stop ringing.
Think about the last time you needed a specialist. Maybe it was a surgeon for your kid or a mechanic for your classic car. Did you go on Google and look for the cheapest person available? Of course not. You looked for the person who was most likely to fix the problem correctly the first time.
In professional services, a low price often sends a warning signal. It says, "I’m not sure I’m actually good at this," or "I’m desperate for work." Neither of those things makes a customer feel safe.
When you charge more, you attract a different calibre of client. You move away from the tyre-kickers who complain about every cent and move toward people who value their time. If you want to stop dealing with headaches, you need to stop pricing yourself like a bargain bin. Often, the best way to grow is to focus on high-value referrals rather than trying to win over every random person who finds you online.
Myth #2: "I have to justify my hourly rate"
This is the biggest trap in the book. If you tell a client you charge $250 an hour, they start doing the maths. They think, "Gee, that’s more than I make," or "Why does this take three hours?"
Stop selling your time. Start selling the result.
Imagine you’re a recruiter. If you find a business the perfect manager who stays for five years and grows their profit by $200,000, is that worth $30 an hour? No. It’s worth a premium fee because of the massive headache you just solved.
When you talk to a potential customer, don't talk about how many hours you'll spend on their file. Talk about the money they’ll save, the time they’ll get back, or the risk they’ll avoid. If you can show a business owner how you'll put $10,000 back in their pocket, they won't care if it took you ten hours or ten minutes.
I've seen so many recruitment marketing fails where the firm focuses on their "process" instead of the fact that they find staff who actually show up and do the job. People pay for the destination, not the plane ride.
The "Brisbane Tradie" Test
I like to use this example because it’s so relatable. You have two sparkies. One quotes you $80 to come out, but he shows up late, leaves a mess, and you have to call him back twice because the lights still flicker. The other quotes $150, shows up on the dot, explains exactly what’s wrong, fixes it in twenty minutes, and cleans up after himself.
Who are you calling next time? And who are you recommending to your mates?
The expensive guy is actually the "cheaper" option because he didn't waste your time. As a professional, you need to be the second sparkie.
How to Transition to Higher Rates (Without the Panic)
You don't have to double your prices overnight and hope for the best. Here is a practical way to do it:
1. Stop Quoting Hourly: Whenever possible, give a fixed price for a specific outcome. This rewards you for being efficient and experienced. 2. The "New Client" Rule: Keep your existing clients on their current rates for now (if you must), but the very next person who calls gets the new, higher rate. You’ll be surprised how often they just say "yes" without blinking. 3. Fix Your Website: If your website looks like it was built in 2005, you can't charge 2024 prices. Your digital presence needs to look like a premium service. It needs to load fast, work on phones, and show people that you are a serious professional. 4. Specialise: Generalists get paid less. If you’re an accountant for "everyone," you’re a commodity. If you’re the accountant who specialises in helping Brisbane-based medical practices maximise their tax returns, you can charge a premium because you have specific knowledge.
What if they say "You're too expensive"?
You will hear this. And that’s okay.
When someone says you’re too expensive, what they’re actually saying is, "I don't understand the value of what you’re doing yet."
Your job isn't to drop your price. Your job is to explain the cost of not hiring you.
"I understand I'm not the cheapest option, John. But if we don't get this contract right now, it could cost you $50,000 in legal fees down the track. Do you want the cheapest fix, or do you want the one that protects your business?"
Most people who are worth working with will choose the protection. The ones who don't? They were going to be your most difficult clients anyway. Let your competitors deal with them while you focus on the big corporate contracts that actually move the needle for your business.
The Reality Check on Timing
How long does it take to see results from this?
In terms of your bank account, you’ll see it the moment the first person pays the higher fee. But in terms of your reputation, it takes about 3 to 6 months of consistently positioning yourself as the "premium" choice before the market starts to treat you that way.
You might lose a few low-value leads in the short term. That’s a good thing. It frees up your time to provide a better service to the people who actually pay you well.
What to do first
Go through your last five jobs. Calculate how much you actually made per hour after all your overheads and time spent. If that number makes you want to cry, it’s time to change.
Start by updating your next three quotes. Don't explain the increase. Don't apologise for it. Just present the value and the price. You’ll be amazed at how many people don't even question it.
Charging what you’re worth isn't about being greedy. It’s about having a sustainable business that allows you to do your best work for your clients. You can't give your best advice when you're stressed about making rent.
Ready to stop being the best-kept (and cheapest) secret in Brisbane?
At Local Marketing Group, we help professional service providers get their message right so they can attract the right kind of clients—the ones who value your expertise and pay what you're worth.
Contact us today and let's get your phone ringing with the right kind of customers.