Attracting higher paying clients or jobs is one of those issues that is taboo to openly discuss, but pricing is an area that I think should be discussed more openly – especially among women.
When a lot of women start working with me a common theme is that they aren’t making the amount of money that they would like to. At some point I always have to ask this question – How much are you charging for your time?
Eight times out of ten, women are charging relatively modest prices or are bartering their time in exchange for something else and they see the solution to their problem as being that they either need to find more clients or work longer hours to get promoted to make more money.
But here’s the thing most women don’t pay attention to – your time is an investment and time really is money!
Here are 4 tips to help you change your thinking and start drawing in higher paying clients.
1) Figure out How Much You Want to Sell Your Time for
One of the secrets to enjoying your work and earning a higher income is to get clear about how much you are willing to sell your time for. You have to get very clear on how much you want to make – break it down by the hour so you have a concrete understanding of what you are selling each hour in your day for.
If you work for an organization your salary is considered your price tag and if you are self-employed your fee is your price tag. Divide your monthly salary/fee by the number of hours you work and that gives you the hourly rate you sell your time for. Then ask yourself do I feel good with that number? If you don’t, decide on a number that you feel good about and hold to that number.
2) Figure out who can pay you that fee
Once you’ve got your number then ask yourself what type of client/job environment would be best suited to pay that rate.
A lot of times people will start off by saying I want to work with _______ (insert general target group here – i.e. children, women, entrepreneurs, tech companies, Hispanics, African Americans etc. etc) and that’s a great starting point – but it’s not where you end.
Once you have a general target group ask yourself who within that ideal target group/client base can afford the hourly price you want to make. That’s the missing question that needs to be answered. Once you know who within your ideal target group can pay the price you want to charge, that group is your true target group and that’s who you cater your marketing towards.
3) Never EVER Compete on price
Understand one thing – Money is simply an exchange of value and if you are charging what everyone else charges or accepting what you think the going rate is for your service, you are putting yourself at a HUGE disadvantage.
When you diminish your value to one of purely a monetary exchange, you miss out on the opportunity to sell yourself on other qualities.
Yes, price is a factor that is considered but purchasing/hiring decisions relay on several other qualities as well. Reliability, trust and good service are often valued higher than something that is merely cheap and if you get a reputation for being cheap, even if you are also reliable and trustworthy, your other attributes may go unnoticed and undervalued.
Rather than competing on price, a better approach to take is to show value for your knowledge or services.
Even if you are priced higher than your competitors, if you can demonstrate to your customers/boss that you’ll give them better value you stand a better chance of getting the amount you want.
Competing on price alone is never a good idea, even when you’re getting started.
4) Showcase your value and Package Yourself Accordingly
As a general rule, your work won’t speak for itself -you must speak for you. And this is the piece that many people, women in particular, would like to avoid doing because they think it may appear as arrogant or boastful and could turn people off.
But as uncomfortable as it may feel to put yourself out there you have to let people hear and see you if you want to raise your value in their eyes.
Promote what you are doing and what you can do to help others and this will go a long way in helping others to grasp the value working with you brings.
If you miss this piece, you will be giving others permission to define your value and determine your price tag.
I would love to hear your thoughts on this post, so do leave me a comment below!