IAM2720 – Why Pricing is a Confidence Problem, Not a Math Problem

The Confidence Gap in Pricing

This episode tackles the common discomfort entrepreneurs feel when discussing their rates, revealing that the issue is rarely about the numbers. Instead, pricing is identified as a confidence problem that stems from a lack of belief in the value being provided. When a leader is unsure of their worth, every price point—no matter how small—can feel like it is “probably too high”.

Transformation Over Math

The discussion shifts the focus from competitive analysis and mathematical formulas to the “transformation” a business creates for its clients. By identifying the exact problem being solved and the ultimate impact on the customer, pricing becomes the easiest part of the business equation. Listeners are encouraged to stop looking at what competitors charge and instead document tangible results, such as time saved, money earned, and stress eliminated.

Strengthening the CEO Foundation

As part of this special segment, the episode integrates practical “CEO nuggets” and “CEO hacks” derived from over a decade of business experience and thousands of interviews. Success is described not as a linear path, but as a “plate of spaghetti” that requires a strong foundational formula: visibility plus resources times connections. By connecting pricing to real-world transformation, entrepreneurs can stop following someone else's blueprint and confidently “run their own race”.

Previous Episode: https://iamceo.co/iam2717-the-three-core-questions-to-avoid-burnout

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• Franchise CEO (A CBNation Site – coming soon) – franchiseceo.co

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Transcription:

Gresham Harkless 00:00
Pricing isn't always and very rarely is it actually a math problem. It's actually a confidence problem. Now listen to this clearly. When you're clear on the transformation you create, when you know the exact problem that you're solving and the impact that it ultimately has on your clients and customers, pricing ends up being the easy part. But ultimately, when you're unsure or lack confidence or potentially still trying to figure it out, every price feels like it's probably too high. If you're building something meaningful, you're in the right place. This is the I Am CEO Podcast. I'm gresh, and for over a decade I've had the honor and the privilege of Learning directly from CEOs, entrepreneurs and business owners just like you on how to build. After recording more than 1600 episodes, one thing has become clear. Success isn't about following someone else's blueprint. And as I like to say on the show, if you run your own race, you can't lose. Even when you feel the journey should be a straight and linear path. What I've come to find out is success is a lot more like a plate of spaghetti. So in this special segment and episode, I'm starting to curate and share some CEO hacks and CEO nuggets that I've been dying to share. Drawn from thousands of episodes with phenomenal guests that have provided awesome value on the show, but also my 10 years of business experience as well, too. These lessons are designed to strengthen the foundational principles that every business is built on and guided by a simple equation that we always go back to with our content. Visibility plus resources times connections equals success. This is practical wisdom you can apply almost immediately, so be sure to check out the show notes for more resources and next steps on how to level up. And of course, enjoy this special episode of the I Am CEO Podcast.

Gresham Harkless 01:52

If you've ever felt uncomfortable talking about your prices, it's probably not because your pricing is necessarily wrong. It's actually because you don't believe in the value. Yet here's the truth most people won't actually tell you. Pricing isn't always and very rarely is it actually a math problem. It's actually a confidence problem. Now listen to this clearly. When you're clear on the transformation you create, when you know the exact problem that you're solving and the impact that it ultimately has on your clients and customers, pricing ends up being the easy part. But ultimately, when you're unsure or lack confidence or potentially still trying to figure it out, every price feels like it's probably too high. So listen to me clearly. Here's what I want you to do. Stop focusing on what your competitors charge or what you think people might pay and start documenting the results you create for people. Check the time saved, the money made, stress eliminated. That's your value. When you see it clearly, you'll price it confidently. Your pricing doesn't feel wrong because the numbers are off. It feels wrong because you haven't connected it to the real transformation you deliver. Fix that and everything ultimately changes.