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In this segment of her YouTube video "Should You Raise Prices?", Codie Sanchez introduces the concept of the "fear tax"—the hidden cost businesses incur when they let fear dictate pricing, which manifests as low perceived value rather than an overly high price. She argues that most pricing problems stem from customers undervaluing the offering. To address this, she proposes the "value split" method: estimate how much a client earns or saves annually thanks to the service, then set the price at roughly 10–20% of that amount. Sanchez advises creators to stop benchmarking against competitors and instead focus on customers who truly appreciate the value they provide, asserting that such clients will recognize and accept the price.
