06 Aug Entrepreneurial Mindset Makeover Series: How Charging Too Little and Giving Too Much Undervalues You
Entrepreneurial Mindset Makeover Series:
Enjoy the first article in my Entrepreneurial Mindset Makeover series. This series will help you remove the internal ways of thinking, habits and old beliefs that create an invisible wall between you and real success. It’s crucial that you do this inner work along with daily action in your business.
How Charging Too Little and Giving Too Much Undervalues You
As women we have been conditioned and are wired to nurture, to serve and to give. This is a beautiful thing, until, like a fast growing weed, we overdue it and it starts to overwhelm us and undermine our efforts to create a powerful, successful business and a life filled with joy and passion.
Each time you undercharge for your time and services you are sending a message that you don’t attach much value to what you do. As a result people don’t value what you offer as highly as they should. And you will tend to attract people who care more about a bargain then about getting amazing results from you. Some people undercharge because they fear that “people won’t be able to pay me more”. I’ve heard this so many times. Who decided that people won’t pay you more? If you are deciding what someone else can or can’t afford, what is really happening is that you are afraid you will lose a potential client if you “charge too much” and that fear causes you to give everything away, or you afraid your results aren’t valuable. Coming from a place of fear rather than a place of powerful certainty that you can change that client’s life in some way will not attract your ideal clients because you are not owning and articulating your value.
I’ve helped many coaches and consultants who charged a low monthly rate and worked too many hours completely transform their businesses. They also often over-delivered. Again, over-delivering springs from fear—fear that your client won’t like you, recommend you or continue to work with you if you don’t give them everything they ask for and more.
Think of your ability to give and nurture as a well. If you keep pulling water out but no new water enters the well runs dry. And just think about how you’re missing out on the joy and exhilaration of success with time available to live the life you want.
As long as you can articulate the value of what you offer and you get results that really are transforming you can start charging more.
People don’t pay for your time, they pay for results!
Just do some simple calculations to understand the money you’re leaving on the table. Say you’re a coach charging $400 a month for 3 hours of monthly coaching (a common occurrence). That’s $2400 for six months if the client stays with you that long. Imagine if you created a 6-month package that sold for $5500 and that required less of your time but got the same great results. And let’s say we’re talking about serving 10 clients. That’s $55,000 vs. just $24,000—more than double and in less time. Plus with a package you can spell out exactly what your clients can expect and what they’ll receive, thus eliminating the problem of over-delivering. And the type of clients who will pay you more will value you more and will work harder to succeed.
You only have so much time and energy, right? Why not make the most of them and fill your well with more joy, more time and more money.
To get started honoring what you’re worth–
- Pay attention to how you justify undercharging and over-delivering. What story do you tell yourself that keeps you stuck? I can guarantee you those stories emanate from fear.
- Re-write the stories to come from a place of self-love, honoring your value, and proudly speaking about the results you can achieve.
- Tell yourself the new story. Imagine yourself living the new story every day. How would it feel?
- Create a new higher priced package, program or service and clearly articulate the results it gets and how it will change some aspect of your client’s life.
- Ask people to say yes. Will it be scary? Probably. Will it take a bit of courage? Sure. Will the results be amazing? Absolutely. You may not get a “yes” on the first try, but if you keep doing the above you will get a “yes”.