05:12
Faizan
If I were to survey 100 entrepreneurs about their biggest challenges, more than half of them would say, knowing what to charge. You see, it's different when YOU are calling the shots. You could work for someone who has the courage to charge $500/hour and while you may think it's too much, when asked about the company's rates, you'll confidently reply "we charge $500/hour." But, when asked that same question in your own business, doubts and fears that you may be not worth it start to creep up to the surface.
Trust me, I get it. I experienced the same thing when I first started my business. I bought into the popular misconception that you have to "pay your dues" by charging lower rates or working for free. I say this is a myth, especially in my case because I hold the advanced degree, have the certifications, etc. I had already paid my dues when I invested in my education to serve my clients in excellence, but the truth of the matter was that I wasn't confident that people would actually pay me what I wanted to be paid.
And that leads me to you. Perhaps you feel the same way. Perhaps you have the degree or certification or experience getting big results for the people you serve BUT you're afraid that people won't pay you what you want or worse, you're unclear about what you must be paid to earn a profit. Either way, setting the right rates for your products and services comes down to these five considerations. Take heed before you tell another person what your rates are.
What will your market bear? Based on the ideal client that you've chosen to serve, what will they pay for your service? While I am of the mindset that you can charge more when you have social proof or results substantiating the value you add, you don't want to price yourself too low or too high based on your market. You must, dare I say it, do some research. You need to ask yourself, "what are people who buy products and services similar to mine paying for those products and services?" My recommendation is that you start by asking those who would buy your products and services instead of just looking at a colleagues website and determining that is the right price. Just because their price is listed doesn't mean people are buying it. If you can prove your results that can lead to you charging a little more in your market. While research is important, do not look at another's prices, set yours and move on. You don't know how they priced themselves, and again you have no clue if anyone is even buying.
Trust me, I get it. I experienced the same thing when I first started my business. I bought into the popular misconception that you have to "pay your dues" by charging lower rates or working for free. I say this is a myth, especially in my case because I hold the advanced degree, have the certifications, etc. I had already paid my dues when I invested in my education to serve my clients in excellence, but the truth of the matter was that I wasn't confident that people would actually pay me what I wanted to be paid.
And that leads me to you. Perhaps you feel the same way. Perhaps you have the degree or certification or experience getting big results for the people you serve BUT you're afraid that people won't pay you what you want or worse, you're unclear about what you must be paid to earn a profit. Either way, setting the right rates for your products and services comes down to these five considerations. Take heed before you tell another person what your rates are.
What will your market bear? Based on the ideal client that you've chosen to serve, what will they pay for your service? While I am of the mindset that you can charge more when you have social proof or results substantiating the value you add, you don't want to price yourself too low or too high based on your market. You must, dare I say it, do some research. You need to ask yourself, "what are people who buy products and services similar to mine paying for those products and services?" My recommendation is that you start by asking those who would buy your products and services instead of just looking at a colleagues website and determining that is the right price. Just because their price is listed doesn't mean people are buying it. If you can prove your results that can lead to you charging a little more in your market. While research is important, do not look at another's prices, set yours and move on. You don't know how they priced themselves, and again you have no clue if anyone is even buying.
Posted in: business
