It’s very typical for me to get my clients to raise their rates within our first few months of working together. So often when we are first starting out in our businesses, we don’t want to be accused of being “too expensive.” And, particularly since we’ve just started out, we don’t feel comfortable pricing ourselves at too high of a rate, even when we might have years of experience and training in our field. We worry that we might lose business or at least lose the opportunity, if we charge too much.
For example, one of my clients has recently started an IT services company for small businesses. She has nearly twenty years experience in the IT business, including global experience. When we had a conversation about what she was charging for pricing, she admitted she had severely underpriced her first few jobs, because she was afraid she might not have gotten the business if she hadn’t.
These feelings are normal for new business owners, and it’s not unusual to under price one’s services, particularly at the beginning. But it’s really important NOT to do this for several reasons.
1. If you are really good at what you do, you don’t need to become a commodity with your gifts and skills. Figure out what you’re worth – set your prices and sell the value and results you bring to your clients. If someone is in pain, or really struggling, and you can fix that, he or she won’t necessarily care what you are charging – as long as you relieve their pain. It’s about the value, not the price.
2. If you undervalue your services with rates that are too low, you will forever be angry with yourself (and eventually with your client). A client may need some extra attention from you one of these days and you don’t want to end up being resentful that they aren’t paying you enough now, so how could you possibly give them more!
3. Make sure you have some sense of what your competitors are charging. Chances are, you will find a fairly wide range of pricing. Think about your experience, what you bring to your clients, your gifts and skills, then price yourself accordingly after taking in all that information. I like to tell my clients, set your price – then raise it 25% — then you will probably be in the ballpark of what you’re worth.
When people ask you right off the bat what you charge, or call out of the blue wanting to know your prices, you can be sure that these are not your ideal clients. These are people who are price shopping. You do not want or need to get into that. You want clients who can see the gifts, value and results you bring to the relationship, and are confident you are just the person to help them!
If you are wondering about your pricing – if you are charging too little, too much or the right amount for your services – I would be happy to have a quick chat with you to help you determine if you are in the right place. Feel free to give me a call at 207-653-6977, or contact me at mandy@mandyschumaker.com
 Mandy works with talented, bright, high energy self employed professionals and very small businesses who struggle to market their business effectively, stretch their capacity and play a bigger game. Mandy’s client’s receive proven, specific information on what they need to do to get more clients and grow their business. As a result, those who coach with Mandy increase their business, get more clients and make more money, faster and easier than they ever would have on their own.Sign up for her free Cd “7 Productivity Secrets of Successful Entrepreneurs” at www.mandyschumaker.com. Or contact her at 207-653-6977 |
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