Knowing and explaining the value for pricing your services.
Have you heard the expression “Beauty is in the eye of the beholder”? This is true for value as well. When we ask ourselves the question: How much are my services or products worth?
There are more than costs, mathematical formulas and market studies to consider.
At the end of the day people will pay for anything only what they consider the product is worth, and in almost every industry you will find that prices vary greatly. So, when you are starting it might seem very challenging to determine what to charge.
Let’s talk about challenges, in a previous article I mentioned how charging for my services was one of my biggest challenges. I am a Licensed Psychologist and a Certified Transformational Breath® Facilitator.
Did I mention that when I started my practice I offered people money to come take a session with me? No?
Well I did, not a salary to be my client but more along the lines of “I’ll pay for your bus fare so you can come.” As a Senior Trainer, a big part of my job is to make sure our facilitators in training know the value of their work.
So, if you’re willing to join me we will dig a little more into the subject and hopefully this will help you have a smoother transition when moving from the “student” or “salaried” world to the “entrepreneurial” one.
In my case abundance was one of the most difficult things to embrace, not for others, but for myself. There are certain paradigms that I had bought into and I found extremely hard to change. I also find that they are a bit more prevalent in our culture, at least it seemed this way in Mexico.
Everyone told me the same things over and over, grandmas, aunts, friends, colleagues and mentors!
They shared three paradigns:
Paradigm 1: You must work HARD to be successful, and it will be YEARS before you see results.
Paradigm 2: Opening your own business is a risk, a salary is certain.
Paradigm 3: You should start by charging a very low fee so people get to know you.
My life experience fed into these paradigms too, when I graduated I was offered a position at my university.
Once I transitioned from student to employee I was the lowest man on the totem pole, therefore I was offered a ridiculously low salary, I worked 12 and 14 hour days for years and I was still getting paid a ridiculously low salary, even though I had received several promotions and seemed to take on more and more projects and responsibilities all the time.
On hindsight, this was a good thing, it pushed into making changes in my life.
Now, I am not here to share mathematical formulas or market studies to help you figure out how much you should charge, granted you should do that too. I am going to assume you’ve done all the work. You have the most incredible business idea or profession, you have done your research, you have planned and budgeted.
Next page- Explaining and justifying fees