The 4 Most Common Pricing Mistakes Killing Your Side Hustle (and How to Fix Them)

Setting the right price for your side hustle can feel like a high-stakes guessing game. You don’t want to price too high and scare people off, but if you price too low, you’ll burn yourself out working for pennies. Getting pricing right is critical, not just for your profit margins but for the overall success and sustainability of your hustle.

But here’s the harsh truth: Most side hustlers are making major mistakes with their pricing. These mistakes are costing you sales, profit and even your confidence in what you’re offering. Let’s break down the most common pricing traps and how to fix them so you can start charging what you’re worth (and getting it).

 

1. Pricing Based on Your Emotions, Not Data

The Mistake: You’re setting your prices based on how you feel about your product or service. Maybe you think, “I don’t deserve to charge more,” or you worry people won’t pay, so you price super low to make yourself feel more secure. Emotions and self-doubt creep in, and suddenly, you’re underselling yourself.

Why It’s a Problem: Pricing based on emotions can lead to undervaluing your work. You start to resent your side hustle because you’re doing too much for too little. Plus, customers may perceive lower prices as lower quality, which can backfire.

How to Fix It: Base your pricing on data and research, not emotions. Check out what competitors are charging, understand the market value and calculate your costs plus a healthy profit margin. Look at your time, effort and the unique value you bring.

Action Item: Spend an hour researching similar products or services in your niche. Create a pricing spreadsheet to get a realistic view of where you should position your pricing.

 

2. Trying to Compete on Price Alone

The Mistake: You think the only way to beat the competition is to be the cheapest. So, you keep slashing your prices, hoping that being the lowest-cost option will attract more customers.

Why It’s a Problem: Competing on price is a race to the bottom. There will always be someone willing to charge less, and being the cheapest doesn’t build a sustainable or profitable business. It devalues your brand and can attract bargain hunters who don’t appreciate what you offer.

How to Fix It: Instead of competing on price, compete on value. Highlight what sets you apart. Maybe it’s your personalized service, higher-quality materials or a faster turnaround time. People are willing to pay more if they understand the value they’re getting.

Action Item: Write down three key reasons why your product or service is worth the price you’re asking. Use these points in your marketing to show potential customers why they should choose you over cheaper options.

 

3. Failing to Factor in All Your Costs

The Mistake: You set your prices based on what sounds good or what you think will sell, without calculating your actual costs. This includes not just material costs but also time, marketing expenses, transaction fees and other overhead.

Why It’s a Problem: If you’re not factoring in all your expenses, you could be working hard and barely breaking even, or worse, losing money. Your side hustle becomes stressful because you’re working constantly but not seeing the financial rewards.

How to Fix It: Do a detailed cost breakdown of your product or service. Include every expense: supplies, packaging, shipping, website fees, advertising and the value of your time. Once you have a clear picture, add a profit margin to make sure your pricing is actually profitable.

Action Item: Create a detailed list of every expense related to your side hustle. Use this to calculate your true cost and adjust your pricing accordingly. Tools like cost calculators or basic spreadsheets can be lifesavers here.

 

4. Not Raising Your Prices as You Grow

The Mistake: You’ve been charging the same price since you started, even though your experience, skills, and quality have improved. You’re afraid that raising prices will chase away loyal customers, so you stay stuck with old rates that no longer reflect the value you provide.

Why It’s a Problem: As you level up your skills and offerings, your prices should reflect that growth. Staying with outdated pricing means you’re undervaluing yourself and missing out on extra income. Plus, people actually expect price increases when quality or demand rises.

How to Fix It: Don’t be afraid to raise your prices when it’s justified. If you’ve added more features, improved your skills, or have more demand than you can handle, it’s time to increase your rates. The key is to communicate the value you’re offering so that your audience understands why the price is going up.

Action Item: Evaluate your pricing every 6-12 months. If you’ve improved your skills, added more to your offerings, or are in higher demand, plan a price increase. Notify your existing customers and highlight the added value they’ll receive.

 

Getting your pricing right is one of the most important, and challenging, parts of running a successful side hustle. It’s not just about making a profit; it’s about valuing yourself, your time, and your skills. Avoid these common pricing mistakes and start charging with confidence. You deserve to get paid well for the value you bring, and your customers will recognize that when you set your prices strategically.

Remember: Pricing isn’t a one-time thing. Revisit it regularly, stay aware of market trends, and always be willing to tweak it as your side hustle evolves. The right price is one that’s fair, profitable, and aligned with the unique value you offer. So, don’t sell yourself short, set your price, own it, and watch your side hustle thrive.