A fair exchange of value
I don’t think I am the only person who struggles to determine how much to charge. Do you sell time, a product, a service or a hybrid of any combination of those? How do you know that what you are providing is valued as highly as you feel it should be?
Firstly, this is an art, not a science. If you are really providing something that solves a problem for a small group of people, they may pay you a lot of money to make their lives easier, but may ask a lot more of you than you are willing to give for that amount.
This is where you do your market research, look at what you are providing and take great effort to provide the customer service levels you are comfortable with. You may not be able to charge a king’s ransom for your problem solving, but you need to ensure that you are able to live on the proceeds of the effort you involve yourself in.
This is why trying to beat the competition to the bottom of prices is not a good approach to business. On either side of the fence, getting the cheapest is not the best value. We see it all around us. The drive to the bottom for public services; corporations giving things away for free, in exchange for your valuable data that they sell on.
People’s value is slowly creeping away as an excuse for austerity, freebies, automaton, the excuse list goes on. But this race to the bottom is doing nobody any favours. When you select a client (or they select you), you need to know that they value what you provide and that you see the relationship as a win-win for both of you. When you get into the conversation of determining what is the right price, you need to believe that you are both talking from a space of value. The negotiations then become one of trying to find the optimum fair exchange of value for both of you, not one of you trying to suck the other dry.
This is something that is lost with a lot of business. You have workers at the bottom of the chain breaking their backs to provide value and build a great business case for their meagre pay rise each year versus the big bosses at the top, taking the cream for the value of putting a few points on the share price. This cannot continue on and we need to find a better way.
I am fortunate to see this more and more with the great business people I surround myself with. We do business a different way. We work with companies who need the expertise, but may not be in a position to afford standard rates. Both parties work together to come up with a solution that provides a fair exchange of value for all concerned. Sometimes it is not about the money!
I hope that one by one we can race to the fair and enough!
In the simplest terms, I help people to get ready to profitably scale. What you do with a room full of people is very different to how you do it when they cross cities, continents or oceans.
I am happy to spend a few minutes working through a challenge you have, as an advisor on officehours.io (Officehours connects you with amazing people, for 10 minutes of free 1-on-1 advice).
Check out my available slots here