Are you charging enough?
Embarking on the entrepreneurial journey is exciting, challenging, and at times – confusing. When you’re new to the game it’s hard to know what is appropriate to charge your new clients. Make sure you know your worth and charge appropriately. As an entrepreneur it goes without saying that you are working extremely hard, and more than likely undercutting your prices.
Your expertise is not a tangible concept, but hourly rates are. It’s good to ensure that your hourly rates also reflect your expertise. Here are a few tips to keep in mind to get you started:
- Assess the discounts or free services you may be providing for friends or family members. There are times when you have to draw the line as inevitably more and more people will be looking to you for a discount due to some sort of connection to you. Stick to your prices. An alternative could be offering a referral program for friends and family where you give out gift cards or something similar.
- Take a look at your financial statements and ask yourself if you are generating enough income to make ends meet. Talk to your trusted advisor about adjusting your rates and estimating what the market can take. Your income needs will need to be utilized for business as well as personal endeavors.
- Don’t apologize for charging the rates that you do, or about collecting them. Standing firm on your rate sets you up for a trusted business relationship. You can back up your rates with what sets you apart and referrals from other clients. Your expertise is valuable! You went through a lot to get where you are today. Recognize that and let it set you up for what you deserve.
If you have any questions contact your trusted Catalyst advisor at 403-296-0082.