“There are three kinds of pipe. There’s what you have, which is garbage – and you can see where that’s gotten you. There’s bronze, which is pretty good, unless something goes wrong. And something always goes wrong. Then, there’s copper, which is the only pipe I use. It costs money. It costs money because it saves money.” ~ from the movie Moonstruck
When you are an entrepreneur of any kind, one thing you have to do, sooner or later, is set your price. If you are selling a product, this may be a little bit easier than if you are selling a service. When pricing a service, however, many people struggle with asking for what they are worth. Coaches, consultants, virtual assistants, designers, organizers, writers, artists, chefs, speakers, etc. must all, at some point, take an unflinching look at what they are worth. Which may or may not be very different from what they think people are willing to pay for their services.
Often, I work with clients on their fees. Many undervalue themselves. And, rarely, I see someone who has an over-inflated sense of their value. (These people are usually in their chosen profession for the money, rather than to offer value.) Finally, there is the occasional person who is comfortable with asking a fair price for what they are worth. So, how do we become that person, if we aren’t already?
There are several simple steps to asking for, and receiving what you are worth. First, do your homework and find out the general ballpark of fees and pricing structure for comparable businesses. Next, pick a dollar amount that you can believe in, and that does not undervalue you, your experience, or the profession. When someone asks what you charge, tell them with confidence (no apologies, or instant discounts or deal making needed) and then – and this is the biggie – politely ask them for their business. It can be something like “When would you like to begin?” Too often, people forget this important, critical step.
One bold way of setting your fees is to pick a number you feel comfortable with, and then double it. Once, I came across the fees of a coach I greatly admire. Her fees were SO high, they felt like Monopoly money. And, to top it off, she required a 6 month commitment. Looking at the number, I went (and pretty quickly, I might add) from laughing off the ridiculously high number to trying to figure out how I could make it work. Even though I didn’t hire her at that time, it was a valuable lesson for me in asking what you are worth. We can be too quick to make up stories to ourselves that revolve around “They can’t afford me.”
One client of mine had a major revelation today which was that she was more comfortable initiating the “money conversation” than waiting with fear for her potential client to ask. She’s right, of course. When we can be proactive and calm, this conversation just goes better. She had practiced what she felt comfortable asking for, so she didn’t get tongue-tied in the moment.
If you are experienced, at some point you will want to raise your fees. It has been said that the perfect time to do this is when you are doing all the business you can handle. One litmus paper test for me is when I hear a brand new coach or two asking almost as much as I am charging, and me with 10 years experience, and multiple credentials.
The last time I raised my rates ( finally!) I remember clearly how I felt the first time I said the new rate aloud for a potential client. After I told her my (new) fee, it got really quiet. That is, if you don’t count her quick intake of breath. Or, maybe it was mine. When she finally spoke she said, “Wow, that is really a premium rate! You must be worth it. Let’s begin!!”
Music to my ears…
