Something I have seen time and time again when working with business owners and entrepreneurs in the past is that they do not value themselves. They let doubts and a lack of confidence cloud their judgement, stopping them from maximising their potential.
Often, entrepreneurs and business owners set their prices to the rate of which their clients would prefer to pay – a price point that’s a lot lower than the true value of the service that is being provided to them.
It’s evident that people are going to want to get as much value for as low a price as possible, but it’s important to remember that your target audience will be a group of people who know and understand the real value of the work you do.
They are more than happy to pay for your high-quality services or products, but if you’re going to offer that to them at a lower rate, they won’t be raising any issues.
The True Value of Your Time
It always reminds me of an old tale about a car mechanic:
A garage was sent a car whose engine wouldn’t start. But, after every member of the team had a look, none of them could work out how to fix it.
Not ones to be defeated, they asked an old friend who specialised in the car’s brand to come and take a look. The expert got to work, examining the vehicle inside and out, testing different parts of the car’s mechanics.
With the mechanics watching on, the expert quickly figured out the issue. He reached into his toolbox and pulled out a spanner before twisting a nut under the bonnet. Seconds later, he was able to start the engine, and the car was fixed.
He sent them an invoice for the work, and it totalled a much higher price than the garage anticipated. Having been at the garage for 15 minutes, they were shocked it reached £500.
The garage contacted the specialist, who sent them an itemised invoice.
Using a spanner – £5
Knowing what to tighten – £495
It gives an essential moral – you can learn as many skills as you want, but knowing how to apply them to the best effect is the most valuable thing you can offer to clients and customers.
Therefore, all business owners should be basing their prices on the problems being fixed, and the experience you’ve gained that has meant that you know exactly how to deal with them.
How to Calculate Your Worth
The first step to valuing your time more accurately is to step out of the modest mind-set. Stop putting yourself down and don’t be afraid to think: I am incredible at what I do. Take stock of your skills, your experience and your knowledge. Then, evaluate the worth of those skills to an outsider. Hint: it’s probably higher than what you’re charging now.
I, along with countless other successful entrepreneurs, agree that safety and modesty is one of the biggest threats to success. Don’t be afraid to step out of your comfort zone and take time to build your self-confidence. Once those skills have been developed, you’ll find it much easier to find value in everything you do and offer.
Then take time to speak to other specialists in your area as well as clients. Ask and compare to see where other people have different strengths. Use this to leverage your pricing and decide if your time is worth more than what you’re charging.
And, above all, value yourself. Once you start to recognise your achievements and celebrate each and every one, not only will you begin to believe in your worth, but everyone else will too.