Picture this…

You’ve just had a great meeting with a potential client and you’re ready to reveal your fee.  You smile and tell them your rate; you go cold waiting for their response.

While you are anxiously awaiting their response crazy thoughts are running through your head like a steam roller.

Will she hire me?

Will she think I priced my service too high?

You hear “Your hired!” and a wave of  other thoughts begin to flood your mind…now you begin to second guess your pricing!

Did I low ball it in order to get the job?

Should I have gone higher?

You know what I am talking about; you’ve been there and you know what’s coming next.  The project always takes more time than you realize and you end up feeling overworked, undervalued and underpaid.

So what is a phenomenal woman to do who knows that she is worth so much more but is not sure about setting her fees?  Follow these tips for better fee setting.

1.  Know What You Are Worth

When you are setting fees how do you go about landing on a price?  Do you throw darts and see where it lands?  Pick a price out of a hat?  Or worse yet do you look to your competition to see what they’re charging?

None of those methods are going to give a price point that addresses YOUR worth.

If you bill hourly remember that many factors go into determining your price point.  So many entrepreneurs fail to consider all the factors so remember the following:

• First figure out how much you want to be making a year
• What are your subcontractor expenses (if you have any)
• What are your other expenses
• How much profit do you want to make
• All these factors make up  your “required revenue”
• Divide your “required revenue” by number of billable hours and you have your rate.  Don’t forget that your total number of billable hours is never 40 hours a week.

Is this rate acceptable?  If not raise your fees.

2.  Give Them Results

Clients are paying you for results.  Technically they’re paying for a service but in reality they are buying a solution.   It’s your job to make sure that you communicate those results clearly so that people know what to expect.

Will she get more clients?  Streamline her processes?  Be more confident when having a selling conversation?  Know the benefits and communicate them effectively!

3. Create A Haggle Free Mindset

Don’t haggle with clients about money.  You’re not selling junk at a yard sale  you’re selling yourself and you have allot of value!  When you engage in haggling it immediately lowers your perceived worth and once that happens you are sunk!  When you haggle you set yourself up for a continuous relationship by which your clients will nit pick you to death over everything…and NO ONE wants that kind of client interaction.

4.  Not Everyone Is Your Client

There will be times when you will have to walk away; when a potential client will not be willing to pay your fee.  That’s OK; they were meant to be your client.  The right client who IS willing to pay your rate is just around the corner.

Pricing your services is one of the most difficult  tasks a business owner will ever undertake.  Be a smart and savvy businesswoman and be prepared by reviewing the project and price.  It will save you a ton of heartache in the long run.

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