Earlier this week, an article in the news about a bakery owner who was approached by a PR company to make a number of cakes for a celebrity client caught my eye. Rather than being paid the going rate for her creations, the PR company said they would pay the bakery owner in social media and magazine mentions rather than cash!
It got me thinking about the importance of knowing you worth and ensuring that you don’t feel pressured into reducing your rates. I’m sure many of us have experienced the dreaded question of whether our rates are too expensive.
It’s a tough one, isn’t it?
As entrepreneurs and business owners, we pour our hearts and souls into our work, and the last thing we want to hear is that someone thinks we’re charging too much.
He said what..?!
I recently had a conversation with an entrepreneur who was looking for some support with multiple businesses. He said that, whilst he knew they could get an overseas VA for around £3/hour, he’d prefer to pay £10/hour for a British one as they can solve problems! When I pointed out that average British rates are currently around £30/hour, he insisted that we shouldn’t be charging that much as “it’s admin that anyone with a laptop can do”. Although I could have politely explained the flaws in his thinking, I decided not to waste any more time on him – he wasn’t the right client for me!
Why?
Because I firmly believe that you shouldn’t let others dictate your rates or make you second-guess your pricing. It’s time to stand tall and have confidence in what you charge.
So….
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Know Your Worth:
First and foremost, you need to understand your value. You’ve spent years honing your skills, gaining experience, and building your business. You offer a service or product that helps people or businesses, and that has value. Don’t undersell yourself! Your rates should reflect the quality and expertise you bring to the table.
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Quality Over Quantity:
It’s better to have a few clients or customers who appreciate and value what you do rather than a flood of people who are only looking for the cheapest option. By maintaining your rates, you attract clients who are willing to pay for excellence, and they’re more likely to become loyal, long-term customers. They’re also likely to recommend you to others, and word of mouth is the best form of marketing.
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Avoid the Race to the Bottom:
Lowering your rates to compete with others who are undervaluing their services leads to a never-ending race to the bottom. You’ll end up in a vicious cycle where you keep reducing your prices to stay competitive, hurting your bottom line and self-esteem in the process.
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The Value of Your Time:
Your time is precious, and it’s not just about the hours you spend working on a project. It’s also about the years of experience, training and knowledge that enable you to deliver high-quality results efficiently. Don’t forget to factor in that value when determining your rates.
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Confidence is Contagious:
When you confidently stand by your rates, it shows potential clients that you believe in what you offer. Confidence is contagious, and people are more likely to trust and respect you when you know your worth.
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You Can’t Please Everyone:
No matter what you do, some people will always say you’re too expensive. But here’s the truth: Those might not be the clients you want to work with anyway. Focus on attracting the right clients who value your expertise and are willing to invest in your services.
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Invest in Yourself:
By charging fair rates, you can invest in your business, improve your skills, and provide even better value to your clients. That’s a win-win situation for everyone involved!
The Value You Bring
Remember, it’s not just about the price; it’s about the value you bring. Price objections are a natural part of business, but don’t let them knock you off your game. Stay confident in what you offer and the value you provide, and you’ll attract the clients who appreciate and respect you and your work.
So, hold your ground and be proud of your rates. Don’t let anyone pressure you into reducing them just because they think you’re expensive. You are worth every penny, and those who recognise that are the ones who will truly benefit from your services and skills.