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Designers often undercharge for their work because they don't fully understand the problems they're solving for their clients. In this video, Ron Sago from Flux emphasizes the importance of recognizing these real problems to justify higher pricing. He discusses how demonstrating the solution to significant business challenges can increase a designer's value. Additionally, he warns against selling services like websites or logos, as they can be seen as commodities, leading to price competition with others. The focus should be on value pricing, showcasing how design can solve important issues for clients.