Why most people price too low

Most freelancers and small agencies in Pakistan charge less than they could, and the reason is rarely market conditions.

The fear of losing the work. You name a price, they go elsewhere, and you have nothing. So you name a number you are confident will be accepted, which by definition is below what the market would have paid.

Not knowing what the work is worth. Without any idea what others charge or what the outcome is worth to the client, the only reference point is your own cost of living, which has nothing to do with the value of the work.

Confusing your rate with your worth. They are unrelated. A price is a market position, not a judgement on you as a person, and treating it personally is what makes the conversation frightening.

Believing cheap wins work. It wins a particular kind of work from a particular kind of client, and both are worse than the alternative. Low prices attract buyers who choose on price, and those buyers are the most demanding and the least loyal.

Three things follow.

If every client accepts immediately without a pause, your price is too low. Some resistance is the signal that you are near the top of what the market pays.

You cannot deliver excellent work at a price that requires you to rush. Underpricing produces worse work, which produces worse reviews, which justifies the low price.

And raising your price removes clients at the bottom, which frees the time that lets you serve better ones.