The Tale of Two Bakers: Why Competing on Price Will Keep You Broke

Apr 16, 2025 | Sales

Lowering Your Prices Might Be the Most Expensive Mistake You’re Making – Why

You’re good at what you do.
Your clients see results.
You work harder than most—and you care.

So why does it still feel like you’re grinding every day just to stay afloat?

You’ve tried to be “affordable.”
You’ve shaved prices to land the deal.
And now, you’re booked solid—but exhausted, underpaid, and wondering if this is really what business ownership is supposed to feel like.

If that’s you, you’re not alone. And you’re not broken.

You’re just stuck in a model that doesn’t scale.

Let me tell you a quick story that might sound familiar.


The Tale of Two Bakers

Two bakers open shops in the same small town.

Baker A wants to grow fast.
He lowers his prices to be the cheapest in town. He figures if his bread costs less than everyone else’s, the customers will come—and they do.

Baker B takes the opposite approach.
He focuses on quality. He uses the best ingredients, charges more, and creates a premium experience that makes people feel like they’re getting something special.

At first, Baker A looks like he’s winning.

His shop is packed.
People love a deal.

But fast forward twelve months…

Baker A is struggling to survive.

His margins are razor-thin.
He can’t afford better ingredients.
He’s making more bread than ever—but seeing less and less profit.

He’s exhausted. Burned out. And when a new baker opens across town with even lower prices, his customers disappear overnight.

Meanwhile, Baker B is thriving.

His loyal customers gladly pay more because they love the product and trust the brand.
With better margins, he hires a team, expands his shop, and reinvests into growth.
He’s working fewer hours and scaling faster than anyone expected.


One baker raced to the bottom—and lost everything.
The other charged for value—and built a legacy.

Which one sounds more like the business you want to run?


Why Selling on Price Will Keep You Broke

Too many business owners believe the lie:

“If I lower my price, I’ll win more clients.”

But here’s what actually happens when you compete on price:


1. You Attract the Wrong Clients

The cheaper you go, the more price-sensitive your clients become.

These are the folks who:

  • Want premium results for basement-level pricing

  • Complain the loudest and refer the least

  • Leave the moment someone undercuts you

They’re not loyal—they’re transactional. And they will wear you down over time.

The right clients?
They don’t chase the cheapest option. They’re looking for excellence.
They want someone they can trust—someone who delivers results.
And they’ll gladly pay a premium for that peace of mind.


2. You Work Twice as Hard for the Same Money

Let’s do the math.

If you charge $1,000 per client, you need 10 clients to make $10,000.
If you charge $5,000 per client, you only need 2.

Now think about the time, effort, and emotional bandwidth that difference requires.
Which one gives you breathing room to serve well?
Which one lets you go home in time for dinner?

Cheap pricing doesn’t just cost you money—it costs you your life.


3. You Can’t Scale Thin Margins

Without profit, you’re stuck.

You can’t:

  • Hire a team

  • Improve your systems

  • Take on better clients

  • Step out of the day-to-day

You’re locked in the grind.
You become the bottleneck.
And instead of building something scalable, you’re just surviving.


How to Stop Competing on Price and Start Charging What You’re Worth

This isn’t just about charging more—it’s about becoming the kind of business that justifies it.

Here’s how to do that:


Step 1: Start with Survival Pricing (But Don’t Stay There)

Early in business, it’s fine to take what you can to get the ball rolling. But you can’t build a legacy on cheap clients.

As soon as demand increases, raise your rates.
When you hit capacity, raise them again.
And as better clients come in, let the painful ones go.

You can’t move up unless you make room.


Step 2: Make Your Offer So Good, Price Stops Mattering

People don’t buy based on price alone—they buy based on perceived value.

So give them a reason to pay more:

  • Offer concierge-level service

  • Specialize in solving high-stakes problems

  • Show proof through testimonials, case studies, and social proof

Baker B didn’t just sell bread—he sold the best bread in town.

When your offer is clearly superior, price becomes a secondary concern.


Step 3: Position Yourself as the Expert, Not a Commodity

Think about it:
No one wants the cheapest heart surgeon. Or the cheapest attorney when they’re in trouble.

When the stakes are high, people want the best.

If your pricing is low, clients assume one of two things:

  1. You’re not that good

  2. You don’t believe in your own value

You don’t need to say you’re the best—you need to prove it.

Publish thought leadership. Share wins. Show results.
Be the obvious expert in your space—not just another name in the directory.


Step 4: Fire the Clients Who Hold You Back

If someone:

  • Constantly questions your price

  • Complains about everything

  • Drains your time with no ROI

It’s time to part ways.

You weren’t put on this earth to serve everyone. You’re here to serve the right people—the ones who respect your time, value your work, and help build the future you’re working for.


Step 5: Reinvest in Quality So You Can Scale

Once your prices reflect your value, don’t sit on the cash.

Use that margin to:

  • Hire a team

  • Upgrade your systems

  • Market to the clients you actually want

This is how you buy back your time and build a business that doesn’t revolve around you.

If you stay stuck in low-margin chaos, you’ll never scale past your own exhaustion.


The Real Cost of Selling Cheap Bread

Baker A thought success meant being the cheapest.
He worked harder. Earned less. And lost everything.

Baker B built a brand around value and experience.
He worked smarter. Served better. And scaled faster.

One built a job. The other built a business.


So Here’s the Real Question: Which One Are You Becoming?

Still hoping low prices will attract the right clients?
Still stuck undercharging, overdelivering, and wondering why you’re not getting ahead?

If you’re tired of being on the hamster wheel…

If you want to finally align your pricing with your value…

We teach this exact framework inside our coaching programs.

We’ll help you:

  • Analyze your current pricing

  • Identify your value gaps

  • Create a plan to raise rates without losing the right clients


Book a free strategy call to see if our programs are the right fit for your business.
No fluff. Just clarity, strategy, and next steps.

You don’t have to stay stuck in cheap-client chaos.
You can build something that’s profitable, scalable, and worth your effort.

Ready to charge what you’re worth?