In the last week, I’ve gotten more than a few queries from colleagues and clients asking my opinion on how much to charge for a particular service.
Don’t you wish there were a reference book or website where you could plug in your years in business, the prospect’s revenues and request, plus your confidence level, press a button and feel assured that your $100, $1000, $10,000-or-more price quote would guarantee the sale?
There’s a reason that book/site doesn’t exist. Setting fees isn’t formulaic, but more a work in progress, a negotiation.
In my recent talk to a group of women entrepreneurs, I shared a story about when my decorated eggs were going for $35 each and selling briskly. A customer, a well-known interior designer in town, selected a dozen–one for each of the editors at the shelter magazines where her work was published. After I’d wrapped up her order and received her payment, she leaned in and whispered, “Your eggs should be $300 each, Jane.” My reaction? I wanted to vomit.
There is a fine line between what you charge and your feelings of self-worth. The more self-esteem you have, the higher your prices are likely to go. By the time I ended my egg-decorating career in the early 2000’s, my eggs were priced at $480 apiece.
Yes, there’s the going rate, what the market will bear, and your reputation. But, what I’ve become keenly aware of, and what I support women in creating, is a deeper connection to their own value.
Take a look at your current price list and notice the sensations you’re experiencing in your heart and gut. Your body doesn’t lie. If you’re having a heart-sinking or gut-wrenching reaction, it may be time to work less on your skill set and more on your confidence level. Price setting is an inside job.
My $oul Proprietor’s Roadmap to Abundant Living starts on Monday, March 7. Please join me if you’d like to raise your prices, get more comfortable around money and turn this primary relationship into the romance of a lifetime!
I love this Jane, it used to be such a challenge. No longer. Now my challenge is when to offer services pro-bono for a non profit.
@NancyMoonPR – Nice to be on the other side! Thanks for your comment.
Bravo! This is a message we business women, especially those of us who are solopreneurs, need to hear over and over again. It truly IS an inside job, and the irony is that when you align what you charge with a higher level of self-confidence, not only does the business flow more smoothly, but you’ll tend to attract more of the right kind of client instead of bargain-hunters.
My husband, a retired physician, says his most grateful patients were those who paid full price. Those whom he tried to help with free samples and discounted prices because he worried about their ability to pay tended to be much less grateful and even more difficult.
@ElizCottrell – I love your example. Women aren’t the only ones… 🙂