Listen to “MIH043:Why you should quit undercharging in your business” on Spreaker.
Over the years, I’ve learned why it’s so important to quit undercharging in my business. Many of you who’ve followed me over the years have seen my prices fluctuate. I’ll be honest with you, the prices change right along with my self-view. I’ve found that my confidence level is directly correlated to my pricing strategy. I’ve learned that when I quit undercharging, and I charge premium prices, I get the results I’m looking for in business. I want to help mompreneurs understand how important it is to change your mindset and allow themselves the option of charging more. Here are three steps to help you…
Honor your offerings and stop undercharging.
Others will treat you the way you treat yourself. Be sure to value yourself- your services and products. Believe that what you offer is valuable and needed. If you don’t believe in what you offer, neither will your clients. What this means is that if your prices are too low, now’s the time to stop undercharging. Whatever your pricing model was six months ago, consider raising those prices. Recently my husband challenged me to seriously consider my bottom line when I had planned to help a few folks with tech consulting services for either free or extremely discounted. I don’t do pro bono often, but on occasion, I will pitch in and help someone out who just needs the service and can’t afford it. This habit, however, has trained me in some way to let down my guard and be more willing to give a “yes” to discounted services- even when the client could actually afford to pay full price. I think what my husband wanted to protect me from is the habit of helping and giving and pouring out so much that I lose focus on why I started my business in the first place: to make money. It’s important to have boundaries in business, and we start forming boundaries by respecting our offerings and insisting that clients honor them as well.
Discounts don’t necessarily mean business.
If there’s anything I’ve learned is that you don’t always get the best business just because you’re offering a sale. For example, when I run extremely steep discounts on my tech services, I often end up attracting clients that are either unclear on their goals or don’t respect the results of their coaching with me. What this results in is an end product that isn’t worth my time. In cases like this, sometimes the customer will completely discount the project altogether, backing out before a project is complete (in which case you would need clear stipulations in place about what happens in situations like these). It’s worth evaluating whether or not you want to risk a steep discount if you’re unsure whether your time and energy will be compensated properly. Remember, this all goes back to honoring your offerings. Also, this also just goes to prove that it’s equally important to know your boundaries and to keep it in writing.
Attract premium clients
If you want to sustain a profitable service-based business that you actually enjoy working every day, then attracting premium clients should be at the top of your to-do list. You’ll want to make sure that your business attracts those who are able to afford your fees and are willing to have a conversation about your services without freaking out over your pricing model. Premium clients will not only pay what you charge, but they’re your best clients because they respect your work, are committed to taking action and seeing results on their actions, they usually pay on time, and will be happy to refer you to others. We can safely conclude that undercharging gets you nowhere in business, and attracting premium clients will give you the business success you’re going after. So, I encourage you to start charging what you believe you’re worth!
Great Podcast! I actually shared with my husband (even though he is not a mompreneur). He has a recording studio and will really benefit from your advice! Thank you! 🙂
Thank you Tracy- I’m so glad you enjoyed this! And thank you for sharing with your husband.