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In this short instructional monologue, Codie Sanchez introduces the concept of the "fear tax," describing it as the hidden cost incurred when entrepreneurs underprice their offerings due to fear of losing customers. She argues that most businesses set prices too low because they undervalue the impact they deliver. To counter this, she proposes the "value split" pricing approach: calculate the annual monetary value a client gains or saves from the work, then set the price at roughly 10‑20% of that value. She emphasizes that price is relative, and by aligning pricing with the actual value created, businesses will attract customers who truly appreciate the offering rather than chasing price‑sensitive prospects.
