Deciding how much to charge your clients can be a tricky business.
On the one hand, you want to be charging enough that you’re able to deliver high quality results and grow your own business.
On the other hand, you want to remain competitive. The last thing you want to do is risk offending a client with a high fee.
But in our experience, business owners more often than not undercharge by a huge proportion. This in turn leads to declining business profits and mental fatigue from working too hard for too little.
Read on to learn how to avoid this and grow your business with the right price!
Charging The Right Price Is About Confidence.
Typically, the leading reason Aussie business owners undercharge is a lack of confidence, such as:
- Not confident in the value you provide to your client
- Not confident in your hourly rate
- Not confident in your client’s reaction
It’s always scary to ask for what may seem like a high price. So, here are three ways to get the confidence to ask for a reasonable price:
#1 – You’re Not Confident In The Value You Provide
Not being confident in the value that you provide to your client is the #1 reason why most business owners will undercharge.
You need to lay out – for yourself – exactly all the reasons why your product or service will make your clients life easier and address their problem.
For example: knowing that your service can help reduce the amount of time per week that your client works by 10% will make you more confident when asking for a higher price.
It’s also a great way to prepare for any follow up questions from your client, like why should I pay you this amount?
#2 – Make Sure You Nail Your Hourly Rates
Calculating your average hourly rate is the quickest way to feel more confident in your asking price.
Having this number in your head will give you a crystal clear idea of how much time your money is worth. In turn, you will be able to more accurately quote on projects for your client.
This also saves you from being put on the spot and accidentally undercharging because you cannot calculate all the complex moving parts of a project without preparation.
#3 – Don’t Overestimate Your Clients Negative Reaction
Asking for a high price can be daunting. But typically, business owners vastly overestimate how badly a client will react.
In most cases, a client who is professional and understands the value you provide will not bat an eye at your asking price, provided it is reasonable.
Professionals understand that a cheap price typically means below quality work. Whereas a reasonable or high price will give you the space and resources to provide your best work.
It is very uncommon for a client to be angered by a reasonable price. At worst, they will simply ask if you can negotiate. This provides a great forum for discussing the value you provide and how you can justify your asking price.
Once you stop imagining that your client will react in the worst way possible, you will become far more confident and successful!
Become Financially Confident Today
While charging the right price for your business is crucial for success, it can still be difficult to find the right number.
At The A Firm, we can help you calculate the perfect hourly rate and customer price.
We’ll ensure you’re charging enough to successfully grow your business. Contact us today for your free meet and greet!