We’ve all heard the common phrase, “You teach people how to treat you.” If you allow someone to treat you like a piece of trash, and you don’t correct them, then you have just given them a lesson on how you should be treated. It’s common sense really, but more than just a few won’t ever grasp that concept.
As imperfect beings, we judge….a lot. Our first impressions aren’t exactly spot on sometimes. If a dirty, filthy guy wearing clothes that are all torn up and greasy walks by me in the grocery store, it would be easy to judge. But chances are, they guy isn’t a bum, he probably just finished working on his Grandmothers car. We can be quick to cast judgement before we have enough knowledge about a person.
The same thing happens in business. You can also teach people how much you are worth, or how much you deserve to be paid for your product or service. It’s the basic law of business: get the lowest possible price for high quality products. If you don’t tell your potential clients how much you want to be paid, then who will? If you don’t know, then you’ll get paid whatever your customers want to pay you. You’ll accept any offer and by doing so, you’ll give your product or service away for less than what it’s really worth. Every time!
First, You Deserve to be Paid
Entrepreneurs tend to fall into a pit of low self worth when things aren’t going so well in their enterprise. So what do they do? They lower they’re prices thinking more customers will be attracted to the new “lower” price tag. When in all actuality, doing that just sends out a signal saying, “I’m desperate!”
Know one thing, you deserve to be paid. If you’re product can help people and is of value, you deserve to be paid for it. Don’t ever sell yourself short. Show the value and your clients will buy.
Get Good at Crunching Numbers
Here’s a great way to gauge whether or not you’re getting paid enough:
If the amount of the offer doesn’t excite you or open your eyes a bit, then it’s probably not worth your time.
During a conversation with a former business associate, he mentioned that at one point, he considered purchasing a Mexican restaurant here in town. But once they crunched the numbers, he would have been buying himself and $35k/year job. Currently, he makes well above that. The numbers didn’t excite him. Too much work for too little.
How Much Should You Be Charging?
Only you and you alone can set your price tag. It’s a combination of a few things.
- Your Knowledge or Expertise
- Your Confidence Level
- The Value You place on your Product or Service
- The Actual Value of your Product or Service
Whatever the price tag, just make sure the numbers excite you, and once they do, make sure you deliver the value. To me, it’s worth it to pay more for Kraft Macaroni and Cheese because I know that it tastes better and my kids will eat it. People pay more for value, even when offered a lower price. The price tag isn’t everything.
In conclusion, I’d like to give one more word of advice. When you hit the price tag that excites you and motivates you, there’s one great way to tell whether or not you delivered on value…..Referrals! If your customers recommend you, then you know you’re delivering.
David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.
Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!
Be sure to connect with David Allred on Google+, Facebook and everywhere else!
