I talk about this in my segment Less Than 5 on my podcast from time to time because too many times we do not know our value, and we do not know our worth.
HOW DID THIS EVER HAPPEN?
Over the past 2 weeks I was challenged because I fell into the trap of low-balling a proposal which in return of course, lessens my worth.
A business professional and friend referred me to someone who really needs social media assistance especially on Facebook. He turned his account over to a clever young man who doesn’t know or even begin to understand marketing.
I did my research and I knew that while this would be a big undertaking, I also knew I could do it and like doing it.
Phone conversations went back and forth, things were progressing nicely. I emailed ideas of work I would concentrate on accomplishing, more phone calls of explanations happened and I was asked for a pricing proposal.
This is where I undervalued myself and dammit I do know my worth. It is important to NOT fall into the trap of a potential client showering you with compliments and more so that you allow your guard to slip when it comes to pricing out a project.
I have two pricing plans, one is a packaged price that works well when I am acting as a consultant and assisting people in learning how to do social media. The other is by the hour, and that is reserved for people/companies who want and need more actual management and hands-on work.
Things did not work out, and that’s not bad news either. There is good news too. I talked to my business coach and realized I am under-charging and I raised my hourly price.
If this person did come back and ask me to work with him the package pricing would be off the table and he would be an hourly client.
I learned a lot about my worth.
When people start to pull back on the reins of being excited after you give them a price that is a big red flag that they are going to be a pain in the ass client. They need to be an hourly client. They also need to give you a retainer up front (like an attorney does) and when that money is gone they need to replenish the amount to keep moving forward.
My business coach scolded me because I did doubt my own worth and that undermined my value.
Before I push this article out into my newsletter I have one more really great tip for you regarding what you should say when someone asks you for a discount. One word, that is all you need to ask back. Just ask why. Why? Think about that, it is absolutely the perfect comeback. Puts it ALL on them, and watch them fumble for answers. If answers come, and they probably will, the fun is now all in your facial expressions. You can have a lot of fun with this, so remember it, use it, and laugh afterwards, just do not discount your pricing, or your worth.
Know your value, know your Worth.