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In this video, designer Ron Sago addresses why many designers undercharge for their work: they often fail to understand the problems they are solving for their clients. He emphasizes that by identifying and communicating these key business problems, designers can justify higher pricing for their services. Sago touches on the concept of value pricing, advising against selling commoditized items like websites or logos, which leads to competing on price with others. The focus should instead be on demonstrating the value of the solutions provided to clients.