Posts Tagged ‘benefits’

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’re anxiously waiting their reply, crazy thoughts are running through your head like a steamroller.

Will she hire me?

Will she think I priced my services too high?

You hear “You’re 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’m 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 business woman to do who knows that she’s worth so much more but isn’t sure about how to price her services? Follow these tips for better fee setting.

1. Know What You’re Worth

When you’re pricing your service, how do you go about landing on a fee? Do you throw darts and hope for the best? 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 for results. Technically they’re paying for a service but in reality they’re 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 a lot of value! When you engage in haggling, it immediately lowers your perceived worth and once that happens you’re 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.  Heck, truth be told, no one wants that kind of client!

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 not 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.

If you’re like most women entrepreneurs you may have a hard time charging what you’re worth.

Want to eliminate self-doubt so you can confidently charge more?

Here’s something to think about…

If you are focused on features rather than benefits, you’re focused on the wrong thing. Instead, I want you to focus on the results and the impact that it creates.

I recently submitted a proposal to an international company to coach two of their executives. The proposal was focused on benefits and the impact my coaching will have, not only on the two people being coached, but of the ripple effect that will be felt throughout the company.

I’m being hired to provide a service that is going to make a dramatic impact for many people. Because of that impact, I am confident in what I’m doing and its importance to the overall success of the company.

Because of the above, I confidently charged what I am worth…and got it!

Want to be able to confidently charge what you’re worth and get it?

Then start focusing on benefits.

Fees are based on value, not on your time, which has no value to the client. You can always make another dollar, but you can’t make another minute ~ Alan Weiss

Charging what your worth is less complicated than one might think.  It boils down to two concepts.  First, know the value of the results you deliver and second, know what you’re worth.

But for so many entrepreneurs they find the task of  charging what their worth  daunting.  Why?  Because they are focused on the wrong thing.

Instead of focusing on value, they are focused on benefits.

So how do you switch the focus to the VALUE of the results you deliver and away from benefits?

Here is four simple but powerful questions you can ask your clients to  uncover  and reveal the value of the results.

1.  What will the outcome mean to you and your business/organization/family?

2.  What is this worth to you/organization/family on a annual basis?

3.  What is this costing you/family/organization in not getting help in achieving these results or in not taking care of this problem?

4.  What does this mean from a qualitative/quantitative perspective?

These questions are going to help you get the heart of the matter for your clients and help reveal to them the importance of solving the problem they are faced with.

When asking the questions remember to be patient and persistent.  You are looking for good, quality, detailed answers NOT answers full of fluff and air.

Asking these questions will make you look like a super star genius in the eyes of your clients as you uncover the truth behind their problem.  Ultimately, this makes getting to a “YES” decision that much easier.

Practice them, try them on for size and let me know if it’s helping you focus on the RIGHT thing!