Friday, November 07, 2014

Do you charge what you are worth?

Pricing is such a tricky challenge when you own your own business.  I know when I started my consulting business, I was nervous about charging too much, but as my business and confidence grew, I realized I could In fact charge more.

So I raised my prices and was surprised to find that my major clients didn't bat an eyelid, which of course made me think, I should have done it earlier!

At a recent conference, speaker Brendon Burchard, raised the issue of valuing ourselves and how it impacts how we do business.  As he pointed out, our financial situations should not impact what we charge for our services or products.

I know for years I held myself back from charging more, because I didn't  " want to make money off women's backs." However, one of my colleagues challenged me pointing out that what we offered was of value, and therefore had a higher price tag, but I know I still struggle with this, as I want what we offer to be inclusive, not prohibitive.

So much depends on a couple of issues:-

1.       Our attitude to money, and its worth In our lives
2.       How much we value our time, expertise and what we have to

Yet, one lesson I have learned is that free isn't valued and more times than I can count when I give stuff away or offer a "deal" it isn't valued and sadly, some  people take advantage of my generosity.  

But that leads me to an “aha” moment I had at our retreat last year.  We were talking about money and what we’d learned from our childhood.  My father grew up in poverty, but went on to become a successful entrepreneur.  He never forgot his humble beginnings and was generous to a fault, always helping people out.  He was a dragon, before there was even a den and supported several people in getting their business off the ground.

I was raised believing giving back is important, which it is.  I still live my life with that mantra, but I was taking it too far, in that deep down, I felt guilty making money, and keeping it.
So take a look at your attitude to money, it can impact how well you do.  Also do the math.  How much does it cost you to deliver your product or service.  Make sure you factor in all these costs into your pricing.  You also have to look at the marketplace and what people are willing to pay.

But as Brendon Burchard said “when you question your self worth, it impacts your net worth.”  Start with that.

1 comment:

Andrea Scott said...

This is an excellent post. Up until now, charging a good fee for my services has been a challenge because I lived in a space of low self-worth.

As I've done the inner work to transform my sense of worthiness, I charge according to the current market based on my experience. It's still a balancing act.

I believe that my services are invaluable, so I can never charge what I'm worth. My worth can never be truly measured in a numerical value. Hence I check the current market rate given my experience.

Brendon Burchard's comment said it all to me. “When you question your self worth, it impacts your net worth.” I choose to start here first.