Charging What You're Worth
We’re back this week with another step towards taking the leap and becoming #ForeverFunemployed. This week, we’re talking charging your worth. Yes, that’s right-- that means basing your prices on your level of experience and expertise, the services your clients need, and the total cost of your businesses’ needs.
“Understanding your value is the first step in being able to charge what you’re worth.”
Understanding your value comes through having the confidence to know just how much you and your team are worth. To some, that confidence comes naturally. For others, it requires being surrounded by the like-minded circle we discussed before!
When it comes to numbers and setting rates, you must first know how much your services are worth. Consider each of these questions when setting up your prices:
What’s the going industry rate for the services I offer?
Is my business where I’d like it to be financially? If not, how much further do I have to go?
How much time will I be spending on this scope of work?
How much time, effort and money has it taken me to grow my business and team thus far?
Let’s start by thinking strictly business. We can all agree that starting a company from the ground up is time-consuming and pricey; when constructing your price list, you’ll have to practice certain aspects of the 9 to 5 corporate structure and base the cost of your services on the experience, time, and effort of yourself and your team.
While accounting for hours and hard work is important, you must be sure you’re making enough profit to cover your business expenses and provide fair pay for the team as well.
Do this by setting a base price, or a figure that no matter how much you negotiate, you refuse to go below. Think of this as your final bid. By this point, you should have a rough estimate of your prices across the board, but as far as business goes, there should always be room for negotiations (within reason, of course) on both sides.
*My advice: start high, at your maximum price. Ask yourself: “What is the most that I can charge for this service given my expertise?” Then ask, “What is the lowest possible figure I can offer while still meeting my business expense needs?” Once you have that figure, you can go from there.
Next, it’s imperative to highlight your expertise as a team and remind your clients why they should choose your company to get the job done. Present a unified front. Showcase that you are a team of fully qualified, driven experts that deserve every last cent! You not only want to portray this image, but follow through with it as well—be dependable! You want to attract clients that trust you can provide an excellent quality of work and are willing to pay generously because they know they will get their money’s worth! Oppositely, you’re bound to get those clients who want to “pick your brain” over a friendly brunch or believe you shouldn’t charge as much for your services, even after the prices are set. These are clients that do not fully appreciate and trust the quality of your work and will constantly attempt to reduce your value, leaving you to believe your work isn’t as worthy as it truly is.
If you’ve reviewed the four questions, made an account of your team's time, effort, and experience, and believe that your company’s in good shape, you’re almost ready to begin writing up the final costs!
Finally and most importantly, as your company grows, you’re in charge of increasing the value. If your company has been stationary for years and you’re hiring new team members, you have to consider the new years of experience that have been added on. Be sure your team is learning and growing as they gain experience so that your business grows in the right direction!
All in all, simply recognizing your self-worth is everything when setting your business rates. Not only does it allow you to see clearly when you’re being too generous with your prices, but it also holds you accountable and pushes you to keep the quality of work up to par which is necessary for every business.
Now, would it be educational without a little homework?
This week, find time to reflect on who you are, who you have on your team, and take an honest look at what you and/or your team bring to the table. Realize that you have the power! Measure all of your expertise, time you’re investing, and the quality of your work, and set your prices accordingly. Good luck!
See you all soon! 😊