Know Your Worth

“I call that a bargain, the best I ever had!”

Everything has an inherent or appraised value. A stamp may be worth $0.25, or it could be worth $2,500. It depends. A base model car (new) often costs about $19,000, or the same car (gently pre-owned) can be closer to $13,000. Again,.. Everything has a value, and that value is determined by a number of factors including reliability, quality, features, etc.

If you were to appraise your own value as an entertainer, teacher, a writer, what would your value be?

What would set you apart from being that more expensive option versus the lower price option?

Does it make you feel uncomfortable to view yourself as a commodity with an asking price?

These are all important points to consider when making yourself or your products available for hire or purchase.

How Much Is Enough?

After contemplating the questions above the next step would be to try to give yourself an honest appraisal. There are many ways to do this:

Market Research:
How much are others charging for the same or similar services or products that you are providing? Look into a range of competitors prices and offerings. What unique features or options are other businesses or professionals promising? How do those compare with your own? What is the average price for such services and products elsewhere inside and outside of your region?
Experience:
What experience do you possess that supports your perceived or achieved value? Do you have degrees, training, education, or workplace knowledge? Also consider the normal or average earning potential for each level of your experience.
Equipment:
Do you possess any particular or specialized equipment that would affect your asking price? How much do you owe on equipment or how much have you spent? Are these expenses included in your pricing?
Time
The old saying “Time is money” has and always will be amongst the most potent and profound of all statements that can be made in business. Time is a finite asset - we are not immortal, and we have many obligations and passions in life life people. So what is your time worth? Does that price change based on what you are doing within that time? Or is your time flat rate despite the task? How much time are you willing to devote to business, and what would / will you charge for time that dips into your own personal schedule allotment?

There are a lot of factors to consider, and the list can go on and on. Such an assessment is not unwise to pursue; the more you know, the more options you have AND the more effectively you can determine your own value.

Maintaining An Acceptable Standard

Once you determine your value and asking price, then the next challenge is to maintain the standards you establish. Of course pricing, expenses, and profits fluctuate with the broader economy, and there will be times when earnings surge and losses accumulate; when a stable balance and flow is present, and then times when it is not. So there is a little bit of a balancing act to perform. I myself have been able to maintain a steady rate I offer my clients, and depending on each situation and client needs discounts or additional fees may be applied. I keep such things in mind when quoting prices. Circumstances that would have me offering a discount would include times when clients meet me at my home, or for online sessions, and i would add fees if I had to travel outside of my normal business range, or if any extra expenses would need to be incurred on my end.

You Set Your Value

With the support of market research, exploration of personal values, and a solid understanding of your expenses and profits, then you can decide how you wish to proceed.

In some business models, a low customer price is set with the intention of attracting business based on that fact (affordable); things like Groupon are designed to offer those ultra discounts and deals. Granted that such a model *can* attract customers, it doesn’t always mean that you will attract *good* customers - *Good* meaning that they value you and your offerings enough to pay it’s worth beyond an occasional promotional offer; they may just be frugal. Such models can be good for some industries, but again, it’s not universal.

Other types of businesses place a markedly high value on it’s offerings. This would be a bit more of a Boutique format. High quality at a high cost. In this model it’s possible to make a more substantial profit, or likewise incur a greater loss, and on top of that, your client base is potentially going to be smaller - as many in the lower middle class don’t have the disposable income to support lofty purchases. It’s the difference between shopping at Nordstrom versus Target.

And then there’s the middle. Quality at an affordable price. In my business, that’s where I feel I fall. For private lessons or coaching I most typically charge $50-60 an hour. For that hour (which I may add, is a competitive industry price based on my experience) clients are provided thorough and comprehensive instruction and guidance; they get take home materials and weekly lesson notes; access to me 24/7 for questions and assistance, a consistent time and day for sessions, and often, I travel to their personal locations (homes, offices, etc.). In my industry, At-Home lessons are a desirable service for busy parents who are trying to cook dinner between getting the kids to soccer and cheerleading.

The choice is really up to you.

Make an informed decision, and one that sits well with you.

A 70 year old Grandma who is looking to pass hours in her day by having a few piano lessons in her home for $20 a session (which is actually very much under the typical standard), might not be motivated the same way as a 35 year old hustling to make ends meet and charging $60 an hour to be the one delivering the lessons. Neither is right or wrong,.. It all depends on a person's needs, comfort level, and ambitions. That 70 year old woman might own the house she’s lived in for 30+ years, and doesn’t have to worry about rental fees or a mortgage the same way as the 35 year old. The 35 year old may be paying off college debt or trying to support a new family. Pricing should always reflect the proprietor's needs, and values, and those change from time to time. Like I said above, there will be ebbs and flows; economic changes must be considered, and personally, I’m not one to charge top dollar rate just because *I can*. To do so would be against my own personal practices; to provide quality services at a reasonable, competitive rate.

Knowing Your Worth & Getting Paid What You Deserve

I have encountered some pretentious and shrewd business owners and operators. It’s a style, and I can respect that. What makes them pretentious and / or shrewd?.. Attitude. There is a difference between confidence, and ego. Pretentiousness has a certain flavor to it; part arrogance, part entitlement, but often, it can also be coming from a place over high level education, and radical experience. It’s not an evil way to be; it just doesn’t always sit well with folks, and it can be off putting. There is a way of demonstrating intellect, quality assurance, and a deep knowledge of an industry that DOESN’t make people feel pressured, or cornered, or even brow beaten into an agreement. I think we’ve all encountered the “pushy salesperson” archetype. It’s annoying and it doesn’t really make one want to engage in business. Granted these people may very much know their worth and the quality of what they offer, BUT a crucial element is the approach and handling of the client.

When I am prospecting a new client I adhere to certain etiquette and practices. I don’t dive right into pricing, and even when pricing is introduced to the talk, I don’t go right for the throat with it, as it were; I will have already established the value of my offerings within the conversation. I will already have at times demonstrated the features, or shown some handy examples - it’s common for me to show pictures from events, or show some happy students (it doesn’t hurt to show the cutest of the photos you may have in your archive), or to have my Instagram or Facebook feed already up on my phone. I show people AFTER asking them if they wish to see. It’s all a dance; you don’t move to fast, and you don’t move too slow,.. You keep the pace of the specific piece. And at the right time, you present your offer. Don’t babble on about it, so be prepared and know your information and details in advance. Ultimately it would be good to know your own pricing and policies well enough that you can smoothly share information without stumbling. When I state my pricing and policies, I am humble about it - I know that my rates are in fact fair but also competitive, so I’m not having to do any pitching per say, and I present the info in an enthusiastic, and direct way - with a smile, and a clear sense of appreciation for the business.

The idea is to not only feel comfortable with what you are asking of existing or potential clients, but also to help them feel comfortable and excited about paying.

There is a great satisfaction that comes with a transaction where both parties are smiling - mutually perceived and achieved va;lue. I’ve used this phrase before, and I’ll use it again here : “You attract more bees with honey than vinegar.” - so that smile goes a long way. It shows a passion for the transaction, and it adds a friendly flare. Tone is huge too. Avoiding sounding pensive, desperate, apprehensive, or aggressive is NOt what makes a happy transaction. Think about any time you have made a purchase from a disgruntled employee or salesperson.. It leaves you feeling less than excited, even if you are purchasing something you can’t wait to take home, there’s that moment where you reflect on the experience of the transaction, and how the salesperson behaved. A good salesperson will seemingly share in the excitement of the customer.

If Your offerings are of quality, and if you present yourself in alignment with that same sense of quality, then you will more likely, and more easily secure the deal.

Getting paid what you are worth is an interesting thing to consider. So like I asked at the beginning of this blog; “ What is the value of what you are offering?”.. What would YOU pay for what YOU are selling?.. Be honest with yourself, and be mindful of as many factors as you can in regards to your needs, expenses, and experience. Ask simple questions like “Am I deliver my goods and / or services with a positive attitude that puts my customers at ease?”, “Are my products and services well put together, or are they sloppy?”, “Are people likely to recommend me to their friends, family, and community?”, and “Am I bringing the best of my quality to these people’s experience?”.. These are all very important things to consider. Audit your own self and business, then, and only then, will you know in your gut if you are getting paid what you are worth.

Till next time,

Be well