Posts Tagged ‘pricing’

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!

As many of you know I run a women’s only networking organization and we meet several times a month to network, build relationships and engage in joint ventures.  Often during my conversation with many of these women they express their frustration about charging an appropriate amount of money for their services.  Typically I hear this from women who are just starting out, but often times I hear it from veterans as well.

When I probe deeper and ask why they are charging so little for their services they tell me its because they are new in business, or they don’t have a certain certification.  They feel they are often in a position of convincing the prospects to hire them despite their limited experience.

Now my question is how do they know you have limited experience?  More often than not, your prospects will only know the answer to that question if you reveal it.

Aligning your pricing with your value and attracting a slew of great clients does not mean you need more certifications, have a high degree of experience, or that you put in more time than someone else.

What it does mean is that you clearly define your target market and then provide the solutions and clearly tell them that you can solve their problem.

Value based pricing has more to do with these two issues than how long you have been a coach, organizer, or wedding planner.  Focus on the value and your clients will gladly pay you for solving their problems!

Oops, you did it again didn’t you?  You discounted your products and services.  I bet you feel like crap right now and are really angry with yourself because you are not getting paid the amount of money you want, need or deserve.  Am I right… am I?

I can even imagine how this happened.  You were having a conversation with a perspective client and they began hemming and hawing about the price and so you immediately jumped into discounting mode and then oops, you did it again.

You know what discounting represents?  It represents that big pink elephant in the room called DOUBT! And you know what else?  It tells me that instead of being focused on the results of your product or service you are focused on features and that is the wrong thing to be focused on my friends.

Your fee is a representation of your inner worth. When you doubt your fees you doubt yourself and your value.  You are negotiating with yourself.  Your internal conversation probably sounds something like this:  “If I don’t discount my services I won’t get this client” or possibly you say “I am afraid they will think I am charging too much for my service” or “I don’t think they will be able to see the value of what I offer if my price is so high.”  The list is endless.

Behind the self talk is the reality that we doubt ourselves and do not truly value ourselves enough to charge what we are worth.  Somehow the money becomes more important.

A good friend told me of a recent conversation with a client.  At each point in the sales transaction this person had repeatedly and repeatedly demanded a discount.  It was becoming and endless cycle of my friend providing outstanding service, client showing up, demanding a discount and getting one, and another and another.  She even reported to me that she had taken a loss on some of the transactions.

Does this sound familiar?

Here is what needs to happen for you to STOP discounting and start valuing yourself!

When you are able to see the value of what you offer and the results that you create as being more important than the money that you charge you will never discount again.  And it will get easier and easier for you to charge more money for your services because you are confident in the result your clients will get from working with you.

Is there ever a time where discounting is a good idea?  I don’t think so.  Instead create packages that are filled with valuable incentives and extras that your clients will really love.  Just make sure that these extras don’t mean more of your time.

Not sure how to package, price and promote your services so that they are focused on the right stuff? Contact me to find out how we can work together and in as little as 4 hours have packages developed that will have your clients gladly paying for your services.  Give me a call at 978-794-4991 or  drop me an email at Maureen@daretobephenomenal.com and I will gladly send you an information packet.