“5 Fee Setting Mistakes & How to Avoid Them”
By Victoria Player, the "Online Marketing Coach"
How do you feel about the prices you charge for your services? Chances are that you have some doubts and insecurities particularly if you're just starting out. Here are a few things to keep in mind when setting your fees so that you can charge what you're worth and get it.
1. You're Not Selling Your Service
You probably think that I am crazy by saying this but you really aren't selling your services at all. What you are in fact selling are the benefits and results that your clients can expect to achieve. They're not interested in how you deliver your service but rather in the results they gain as a result of working with you. The common mistake is to talk about the features and process of your service rather than the benefits when discussing fees. Always put the focus on the client and the emphasis on the things they can accomplish. If you don't know what your client's desired outcome is, how will you or they know when they've reached it?
2. Talking About Price Too Early
If a prospect wants to know what your fees are begin by telling them a little about the benefits of your service first so that they understand the value. Begin by acknowledging that you're going to answer their question but first explain that you need to gather some information about their situation. Don't allow them to press you. You need to establish value by discussing the results they might expect to achieve and perhaps which service package or program (if you have more than one) is most suitable for them. Only then should you tell them the price.
3. Charging By Time
Don't be tempted to let your clients think that they are paying for your time. What they are actually paying for are the fabulous results that they can expect to gain as a result of working with you. We no longer live in an age where an hourly rate is king but are actually paid for outcomes and results. Remember also that a lot of the learning for a client takes place between sessions not just during it.
4. Giving Your Time Away
Look at how you spend your time on menial tasks such as grocery shopping or cleaning. You will not be able to charge higher fees unless you delegate some of these tasks. Consider how much potential revenue you could generate by working on your business for one hour. Why not pay someone £10 per hour to do your grocery shopping and dry cleaning whilst you work. Compare the difference between the money you could generate in that time and the cost of someone else doing it. What is an hour of your time worth? The more you value your time the more you can charge.
5. Accepting Discounts
Don't be tempted to give discounts and don't feel that you have to give explanations not to reduce your fees. When someone requests a discount ask him or her which component they would like to have removed from your service. Is there really a reason that's compelling enough to accept a discount? It puts you out of pocket and dents the value you hold for yourself. Don't be afraid that you will loose a client. Those that are committed to a strong working relationship will find a way to pay your fee. The people that quibble are probably not the calibre of client you might wish to work with anyway.
The key to charging what you're worth and getting it is remembering to put value before price. If you doubt your fees try to catch yourself in the act. It's amazing how awareness breaks a bad habit. Remember that it's just your internal 'Gremlin' at work so be sure to change the questions you're asking yourself. What's the value my clients are getting? What benefits are they gaining as a result of working with me? How is that impacting their life? Take the focus off yourself and direct is back onto the value that you are bring to your clients' lives. This will have you charging more in a flash!
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About the Author:
ABOUT THE AUTHOR: Victoria Player, the “Online Marketing Coach,” is founder of the small business growth website www.VictoriaPlayer.com and creator of a proven step-by-step system for increasing your online visibility, positioning yourself as an expert and attracting more of your IDEAL clients without the need to sell. To get your FREE audio training program, mini e-course and practical how-to marketing advice for attracting repeat and increased business each and every month, visit http://www.VictoriaPlayer.com.
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