Women in Business: Why They Under-Charge
It’s an epidemic: Business women are charging too little for their products and services, and as a result, they’re over-working themselves just to keep up.
Sound familiar? Do you find yourself working extra hours or making financial sacrifices in order to maintain margins? Or do you drop your prices, only to attract the kinds of customers you don’t want? Give away your product just to say you’ve made X amount in sales this month?
If you want to charge what you’re worth (as you should), you need to be seeking out and attracting your ideal clients.
These are the people who will naturally see the value in what you’re offering, and who will be happy to pay you well. They are the people who will believe they’re getting a great deal because they appreciate what they’re receiving far more than the money they’re using to buy it.
Embrace this mindset, and you won’t bat an eyelash at charging full price for the value you’re offering.
Here are some of the most common reasons women undercharge:
Misplaced Gratitude
It is important to express gratitude every day, but this point is a bit different. It’s about women taking that gratefulness to a level that damages their businesses. Because women haven’t been in the business world, in force, for very long, there’s a tendency to get there and think Wow, I made it. I’m so thankful to everyone who has supported me. Now I have to do whatever it takes to stay here. Unfortunately, that kind of thinking leads to poor decision-making. Be grateful for support. Be grateful for your talents and skills. And then use them to create value so you can charge what you’re worth!
Pride
Of course, every female entrepreneur should be proud of her accomplishments. Owning a business is hard work, and keeping that business relevant and active is one of the most challenging things you’ll ever accomplish. However, like gratitude, pride can be taken too far. It can convince you that making sales (for other people to see) is more important than earning a living for yourself. It can also convince you that failure — even the kind that steers your business in the right direction — is always a bad thing. Beware of pride, particularly when you think of dropping your price to satisfy it.
Low Self-Worth
When competing in business, you’ve got to understand that you have something unlike anyone else, and that your reason for being in business is not only unique, but something of great value. Women have a tendency to think they’re not good enough to jump in the ring with their competitors, and therefore they rely on lower prices to “compete,” when in reality, they’re losing. Or, they never really learn to believe that they deserve success, and so they subconsciously set themselves up for failure (with small margins).
Altruism
Women put others first; it’s just what we do, and it’s a result of how we’re made and how we’re raised. It’s true that giving brings great joy, and seeing others happy makes us happy, too. However, you can’t let that bubble over into your business dealings. Focus on the type of giving that comes with over-delivering, rather than giving away your products and services for next-to-nothing.
Underestimating Value
Why are you in business? What changes do you want to make and whose lives do you want to improve? What problem do you want to solve, and what kind of impressions do you want to make whilst doing it? When you are clear on WHY you’re in business, then you’re more likely to see the value you’re offering (and so will your target market). Get a good handle on just how much you’ve got, so you can convey that value…and charge for it, too.
The more I work with women entrepreneurs, the more I can see that we’re getting better at this. But we’ve got to stop expressing our insecurities with price slashing. All this does is relieve symptoms… short-term. The long-term solution, however, is to find the people who will see the value in your brand and gladly pay you what you’re worth.
Are you charging what you’re worth? Share you thoughts and wisdom in the comments!
