Price and Value

Providing A Service

I was reminded recently of an issue that many small and micro-businesses owners face. It revolves around the issues price and value.

When you provide a service as I do, it can feel like because you don’t have a tangible product to put in the hands of your prospective clients that would demonstrate what you do, to show what your work with them will result in, that what you do may be seen as of less value.

Here is where you feel you have to give in and accept less of a price than you know you should be charging. You waiver on how much you charge. You submit to requests to lower your price because the customer cannot see the finished outcomes in advance.

When this has happened to me, I have reminded myself and then my prospects, that what they are paying for is not just the time and effort that I will be putting into them and their business now but the more than three decades of experience, knowledge, study, qualifications, and accomplishments that I have in business and the many sectors I’ve worked. Not forgetting my agile mind, creativity, innovation, inspiration, objectivity, and leadership skills.

When you look at it this way it’s much easier to see what the prospective clients will be getting access to.  Past clients, who have experienced all this, return again and again to engage my services.  Current clients have no complaints.

I speak to many business owners who provide services.  They all too often forget the value of the services they provide. Or are afraid to clearly list their experiences, skills, and knowledge as I have above. This is what the client is paying for, solutions created from a wealth of experience, knowledge, and skills, all of which I’ve have to work on and learn myself.

I’m never afraid to walk away from a prospective client when I’m being asked to accept a deal that is below what I’m prepared to accept for my services.

One of the reasons I started my business, some twelve years ago now, was so that I could receive the financial value for the services that I deserve. If I’m not going to do that now I could as well give up.

People use the excuse of ‘negotiating’ when you call them out on continually trying to push you down on price.

Negotiation is a two-way thing.

I’m not saying you never accept less money for what you do but make sure that you’re not giving away your Crown Jewels for a pittance. Doing that will only make you resentful and set a precedent for that client to always try to push you down on price and still expect to get the best service from you.

So here are a few tips for you:

1. Always remind yourself of your experience, knowledge, development, qualifications, skills, learnings, aptitude, etc before you go into see a new prospect or current client. This will set you in a more confident mindset.
2. Never be afraid to tell or remind your prospects of these. My more than three decades of learning is what they’re paying for, not just the time today.
3. Value all that you bring. You set the standard for how people will see you and treat you. Even if they start out with a different view of you, it’s you’re responsible to maintain the highest view and value of yourself and your work.
4. Whatever price you agree to for your service, make sure you are happy with it. If your client tries to push you down on price then reduce your offer. I recently had a prospect that wanted a discount so I stated clearly the reduced level of service they would be given. Such as my availability and length of time in sessions. They then decided to accept my price and normal services. This may not always follow but negotiation is a two-way thing. Never forget that.
5. Remember why you started your business and what you wanted to achieve for yourself as well as your family. Ask yourself, will accepting less than my worth achieve that? I’m not saying that there will never be times when you’ll decide to accept less but always make sure it’s your choice and it doesn’t become a habit of your business model.
6. If you’re still struggling with the issue of your price and value of your service or product, get some help. There may be deeper issues within the business, your strategy or yourself value that need some attention. Give me a call or drop me an email.  I’d be happy to work with you on these areas.

There’s a passage in the Bible that includes this sentence:

For the worker is worthy of his wages. Luke 10:7

Whether you provide a product or a service, you deserve to be paid appropriately for your work.  It’s up to you to make sure that you are.