As an entrepreneur or service provider…, how to charge what you are worth is often a dilemma. You don’t want overcharge clients, but at the same time you don’t want to underpay yourself. So you go back and forth, I should charge this much, no I should charge that much. You know it’s true, we’ve all done it!
How to get over undercharging
Realize it is not a money issue, it is an empowerment issue. When we believe that what we have to offer is worth xyz amount we simply charge that amount.
Take stock of all you offer clients, the end results you give them.
Think about all the benefits you pay for yourself, that your clients receive on top of their salaries; training, medical insurance, dental insurance, disability insurance, vacation time, retirement fund, gym membership…..
Believe that you are a professional who deserves to earn a good living and to some day retire comfortably.
Think about all the hours you put in, all the education you have, all the unpaid time off you have had to take, the potential to be out of work without pay due to an illness or injury.
Clients are hiring you to do a job, they are in effect your employer, you should expect them to pay you what is in effect an appropriate “salary”.
Your income needs to be higher than that of a salaried employee who has benefits. You have to pay for those benefits yourself, you deserve to be paid as a professional and have all the same benefits of other professions.
Appropriate prices bring better results
Money is a motivator, it motivates you to provide a level of service commensurate with what you are paid. If you feel underpaid are you really going to put your all into your work?
Charging more demands a higher level of service, be sure you can provide the level of service that clients will expect from the rates you charge.
Know that clients want excellent service. People are tired of lack luster service and things that don’t hold up. Excellence builds loyalty.
Most people will pay more for a service if they receive the end results they are looking for. Yes I can go get a $10 haircut, for example, but I probably won’t be happy with the experience and will feel like I just threw that money away. I want to walk out feeling amazing and thrilled to have just spent $100 because it was well worth it.
Be motivated to give your lucky clients the amazing experiences that higher prices will bring them.
Bargain hunters are less likely to be loyal. Higher prices help you build relationships with clients which gives you and the client more meaningful experiences.
Don’t be their friend. Be a friendly professional not a client’s best friend, be a doctor not a buddy.
How to Charge What You are Worth: Walk the talk and talk the talk
To charge what you are worth you have to own that you are worth it. Think about when you first started practicing a new skill and how uncomfortable you were, so much so that other people could see your discomfort. And then as your skill increased your confidence and body language changed. Maybe you’ve watched that transformation in someone else.
People know when someone is confident and believes in their abilities. You have to own your power to be comfortable charging your worth. You have to walk and talk with confidence to be able to tell a client I charge $$$ for this service.
Take the time to contemplate your skill set and the outcomes you offer clients, what you really need to earn to be comfortable, pay your bills, plan for retirement…
Everyday tell yourself that you are valuable and feel it in your bones. Watch yourself at work, how feel, and act, if you need to change some things to be more professional and more confident commit to changing them.
Everything you have accomplished was because you made up your mind to do so. Believe that you can offer exceptional services and charge what you are worth, commit to it.