As my hairdresser, Laura, was snipping away at my locks on my most recent visit, we began conversing about what it takes to be successful in business. “You have to do the hard things. The things you don’t really want to do,” she said. “And that includes charging what you’re worth.”
Funny she should talk about the price of her haircuts, as I had been thinking about it a lot. In the eight months or so that I’ve been going to Laura, I’ve spent more on haircuts than I had in the previous two years. Not convinced that a haircut could be worth that much, two haircuts ago I went to a salon that charges about half. I got convinced. I went back to Laura for my last cut.
Are you charging what you’re worth? According to Alan Weiss, author of Million Dollar Consulting, there are two secrets to receiving higher fees:
1.Base fees on the client’s perceived value of your assistance.
2.Ask for them.
Your first step in charging what you’re worth is to determine the value of your services to the client. To do so, you must understand your client and his or her needs. What kind of a relationship have you established with your client? What are your costs to complete this project? What is a successful outcome worth to the client? It’s not about quoting your daily or hourly rate. Give your client a quote based on the project.
Quoting a project fee prevents you from quoting on the spot, or giving a ballpark estimate to your client. Never quote your fee until you’re ready to do so. Be sure you are completely comfortable with your fee. You’ve done your homework and you know what you are worth. When you finally quote your fee to your client, do so with confidence. Tell the client your fee and then…. keep quiet. There’s an old saying in the world of sales “He who speaks first, loses.” If the client doesn’t respond right away, you might be tempted to jump in and say something like “If the cost is a problem, I can lower the fee.” Don’t do it. Don’t even be tempted.
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Great post on fees, I often get comments like ” i know what the going rate is and you are above it”, your rates are too high or the usual, I plan on a lot more work in the future, can you discount me.
I never lower my rates, not because I am stuck on myself, but because I know what my work is worth. I love the comment you made on “what is a successful outcome worth?” I may use that in my site redesign!!
Thanks for your comment, Linda. I appreciate it. Another way I sometimes position myself with a potential client is “what will be your outcome if you don’t work with me?”