One thing so very common in my industry and many others, is the classic tale of the new business owner (coach, marketing specialist, virtual assistant, you name it) who comes on the scene, charges bargain basement rates, and then complains about how there isn’t anyone out there who will work with them.
It happens ALL the time.
There are so many problems with this scenario, I could go on all day. Let me just say there are many reasons why these new business owners aren’t getting clients. I’ll list five of them below. (As I suggested above, you can take what I’m about to say, and apply it to any service industry.)
Charging too little says a lot.
When I see someone charging oodles below industry standards, it tells me a number of things…
- The individual is inexperienced. If they had more to bring to the table, they would charge more.
- They haven’t done any research about what it costs to manage and grow a business. Because if they had, they’d know there are overhead expenses, taxes, and marketing costs to be taken into account.
- They won’t be around for long. (Why do I say this? Because they won’t make any money and won’t be able to afford to keep going.)
- They haven’t considered the damage they’re doing to their peers. When you charge lower than industry standards, you devalue the entire industry.
- They don’t value themselves. And when you don’t value yourself, others won’t value you. Hence the problem getting clients in the first place, and the cycle continues.
If you want to be taken seriously in your industry, don’t underprice/undervalue yourself. It’s a nail in the proverbial coffin.
Even if you don’t have years of experience as a business, don’t fall into the trap of charging less than what the industry can bear. Remember you do have experience. If you didn’t, you wouldn’t be going into business in the first place. You do have something to offer to the market, so charge properly for it!
Do your research and find out the average rate being charged for your specific service or product so you’ve at least got somewhere to start. Then figure out how much you need to make to earn a living (and a profit!), and don’t charge a penny less.
Higher rates lead to better clients. The end.If you don't value yourself, you can't expect others to value you!Click To Tweet
My rates are my rates. I’m not priced for everyone, I’m priced for a certain demographic that values the services and experience my team brings to their business.
I take pride in my team and our abilities, and I’ve priced our services accordingly.
Our clients know they’re getting the cream of the crop when they hire us. They know by our rate that we’re serious about what we do. Our quality of work is reflected in what we charge.
Besides … we’re just a heck of a lot of fun to work with ?
Also published on Medium.