Spoiler alert – the market doesn’t dictate your rate

Ever typed out a quote and deleted it 37 times? Recalculated at least another 20, and then closed your eyes when you hit send?

Yep, you and most people in the business of service delivery. Pricing products – regardless of the sometimes snarky consumer feedback – is an easier process. What it costs you to manufacture, source, store, package and so forth, with a margin on top.

But with service delivery, the figure is based on value. Who’s to say what your time, and your skills are truly worth?

You are.

Bust the myth

Because here’s the thing, the notion that the ‘market’ dictates your rate, is the best way to ensure that you under-price and – more importantly – undervalue what you bring to the table.

If you bring crystal wine glasses but price them as normal glass because that’s what you see out there in the market, you’re doing both you and your clients a disservice.

It’s time to come to terms with the fact that your price isn’t what’s losing you work. It’s not the dollar value that gets a client across the line, but the value that spend represents. So, if they didn’t snap up your quote, it’s because you didn’t do enough to show them that you’re worth it.

Which means… stop dropping your prices, and instead spend time understanding what you do that rocks your clients’ socks, and indeed who that ideal client is. Because when you’ve got that nailed, money is no longer the burning issue.

Stop being ‘cheap’ – be ‘invaluable’

You know the income you need to generate, and the time you have available to do it in, so establish what you need to charge in order to meet your financial targets. It really is as simple as that.

You don’t know what’s in your clients’ bank account, or the figure they have in their mind, but you do know what you need to earn. And because you control your time, you also control your earning potential.

Importantly, fair compensation is not greed. I know the money ‘ick’ is hard-wired into most of us, but coming to terms with that truth is fundamental to being brave – and fair to yourself – in your pricing.

There’s no such thing as ‘competition’

As a service provider, you’re unique. What you bring to your clients is NOT the same as anyone else’s service – so why treat it the same? Instead of comparing yourself to the market and creating a way for clients to compare on price, start with the value you bring, design your services to deliver it, and price them accordingly.

Make your ideal clients see, smell, taste, feel or mentally spend what it is you’re going to deliver for them. Because, as the old saying goes, they want the hole, not the drill. Get to grips with what’s truly in it for them – the impact you can deliver – and then package that up into a compelling offering they can’t resist.

Position yourself in your market 

A critical piece of the puzzle lies in attracting your ideal customers. That means the type of people or businesses you can get the best results for, and who value your specific skill-sets and experience.

Understand them, and the results they need, show them your stand-out skills and what those attributes could mean for them or for their business, and make it easy for them to choose you.

Fundamentally, to charge the right price, you have to start believing in your own value. Because, in most cases, it’s not the customers standing in our way – it’s ourselves!

And if you’re still doubting, still eyeing ‘average’ rates and discounting, I’ll leave you with this… Every one of us is hard-wired to get the best deal we can; to get whatever it is that we desire for as little money as we have to spend. It’s those very same penny pinchers you’re entrusting with your dollar value, your rate – your bank balance. Now does that sound like a good call?

 

By Jessica Osborn

An ex-corporate marketing leader, two-time founder of successful online businesses, Jessica Osborn has more than 23 years’ experience building successful brands and businesses. She’s passionate about supporting professional women to break free of the traditional society ‘rules’ for working mothers, inspiring them to achieve lifestyle freedom and flexibility with their own business. 

Through her popular online programs Business JAM and The Momentum Club, as well as her thriving Facebook community (My Tribe), she coaches women on smart strategies to create thriving online services businesses, where they stand out as a leader in their niche to attract the best clients. 

www.jessicaosborn.com

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