Colin SprakeInvestor & Mentor Driving Multi-Million Dollar Growth

Undercharging Is Why You Are Broke.

7 Mar 2026 · 1 min

Watch on YouTube

0:51

In this talk, Colin Sprake argues that many small business owners undercharge for their products and services because of a deep emotional need to feel needed and a low sense of self‑value. This psychological driver causes them to set prices that customers perceive as too high, leading the owners to lower prices further, undercut competitors, and ultimately race themselves to the bottom. The result is chronic unprofitability, business closures, and missed opportunities for massive profit. Sprake highlights that the attachment to these emotional factors devalues the entrepreneur and prevents them from building a sustainable, profitable business.

Chapters

Undercharging is actually a pandemic with business owners. The fascinating part for me about undercharging is people have this deep need to be needed. And when they go to their customers and they start trying to charge for what they're doing, their customer goes, oh, why are you so expensive? They walk away and they go, I just need this need to be needed. They have this feeling inside me that when this person who buys my product buys my service, I feel so satisfied. And they don't value themselves. And when they don't value themselves, they will undercharge, they will undercut their pricing, and they will race themselves to the bottom and don't even have to compete against anyone else. They will race themselves to the bottom. And that's the biggest challenge I find with most business owners. They're not giving themselves the opportunity to be massively profitable. They are so attached to the emotional stuff that the emotional stuff devalues them. End of the day, they don't make any money that they want. In fact, many of them end up closing because their business is not successful.