In a recent interview I was asked a great question: What was the best advice that you’ve ever been given that you’ve taken to heart? I knew my answer immediately: Know your value.
Stop devaluing yourself. Stop charging less than you’re worth. Stop taking less pay, fewer benefits and bad leadership. OWN your worth. I think that is the biggest lesson, the biggest. And I think it’s a big lesson for a lot of people. And once that finally clicked for me, which trust me, it took me a long time! When I was finally able to say no, it is worth this much money and that is my fee, new, different clients stepped into my world. I am often questioned about me fee, it was interesting because I just went through it. You might have heard I closed BMW as a client here a couple of weeks ago.
BMW approached me to work with their team over a year. I actually had discounted it because they were agreeing to a year because if I can get a client to commit to a year of business, that’s very different than a client that just commits to a month, or one day right? And at one point, the decision maker said to me, “Would you be willing to come down on this price? You’re pretty pricey based on what we’ve looked at out there.” And I said, “I’m the BMW of what I do. Are you willing to sell me a $70,000 BMW for $50,000?” Then he laughed. He said “no”. I said, “There you go.” The next day, he accepted the contract.
Knowing your value and the value of what you offer is one of the biggest and best pieces of advice I have ever been given. I will write more on this topic and HOW to determine it and get over the mental crap that might be stopping you as it did me.
Do you know your value?
Ann M. Evanston is a “Chief Breakthrough Officer” teaching other Business Warriors how to slow down, and find the most unique part of their business that makes them stand out among the crowd. She has been named one of the top marketing consultants by About.com, is a guest blogger for Showcasing Women and takes pride in moving you from “blah, blah, blah” to “BOOM, BOOM. BOOM!”
Ann, that is exactly what I needed to hear loud and clear right now. And I love the way you dealt with the decision maker with total certainty. I am taking this on board and applying it by taking action .. You are so right.
Fiona Stolze
Love the discussion with BMW – very funny too 🙂 Yes, I know my worth and it makes a huge difference in business. Great answer to the question you were asked. If I had been asked it I probably would have said “Step into the success and be it before you have arrived” which is very similar to knowing your worth. That helped me out a lot when I started and just accelerated the success. Previously “waiting” to be the success once I had “arrived” just meant pushing it farther away. Ultimately, it is all a mental game 🙂
Brandy
This is something I am struggling with right now as I launch my new business. I want the clients so badly, and get caught up in my excitement that I just want to say, “here, pay me what you can!” But I know that is the wrong approach (and I don’t ever say that). Being patient and waiting for the right clients to come along is difficult sometimes. I know deep in my heart that what I am offering is worth so much, not only from a monetary point of view but from a personal development angle, too. One foot in front of the other…….’
Love your BMW answer!
LOVE that BMW answer! I also struggle with this a little, having offered me for so little for most of my life, but an getting better at it. I will be very interested to see a future post on how you determine your value. That’s where I’m at!
Louise Edington
Fabulous and Fearless
http://louiseeidngton.com
Me too, i am also struggling with this right now with both my online and offline business. I think it comes with experience and confidence I used to teach English to Greek kids and charged really low as i was new to it. As i got more confidant at my ability to do a good job i decided to up my price (by quite a bit) the first client I told my new price to I expected him to laugh out loud, instead he just agreed immediately. It was a good feeling
Julie
Labes,…The Fierce over 50 feels much younger point and click junkie
loves to travel does not use a jogging stroller and before you ask this
is NOT my granddaughter..Woman
Well, I’m definitely looking forward to your next blog on this topic. I fight with it and feel I must justify what I charge. Wonderful subject. Thank you.
Way to go with the BMW discussion. You’re absolutely right about knowing your worth. I struggled with this early on in my business and gave discounts because I wanted to attract more clients. The end result was a roster of clients that weren’t my ideal client. My initial thoughts were just to get business, but now I understand that it’s the right business that counts and charging what you’re worth is key to making it happen.
What a wonderful story about getting the BMW account. I’ve got a ways to go to get courageous about this. Much of my career I was in an environment where my job was to help in a variety of ways–no questions asked and no fees to set. I really liked that, and I was comfortable with giving everything I could and not having to expect a specific payment (apart from the paycheck I got). I did set fees for my workshops, and never all that effectively!
I eagerly await more posts on this topic, as I need more than one lesson.
Judy Stone-Goldman
The Reflective Writer
http://www.thereflectivewriter.com/blog/
“My cat owns me, my clutter stymies me, my writing frees me.
Word maven loves–and learns from–ordinary life.”
First, congratulations on your contract with BMW and the smart way you handled his question about your contract fee! I can very much relate to this whole scenario…one of the toughest challenges for our business is charging what we need to charge to make a profit and that is in line with our value as a top shop in the industry. So many people choose auto repair based on price rather than value, so it is our job to educate our customers and the public as much as we can about what sets us apart…when people challenge what we charge for a particular job it is tempting to ask (similar to what you said to the BMW guy) “what do you do for a living? would you be willing to work a couple of hours a day at no pay?” That would not be good customer relations, however! So we have to help them understand in a less confrontational way! Our expertise, our knowledge, our ethics, our investment in the best equipment, training, etc., etc….I think that once someone understands the value for their dollar, they can become a loyal customer.
Value — that is a hard one for me. But I keep looking within and trying to revamp and see where all this is leading me. I know I has value in many aspects … just not sure how to monetize it at the moment;)
Yvonne Hall
http://www.yvonneelmhall.wordpress.com
Love your BMW comeback…priceless! They know a good thing, and you are speaking their language! Women are sent negative messages early on so fear plays a role for sure….which affects us from standing up for ourselves and getting what we want and deserve! It’s great to have you to share and show us how you responded so we can learn it is OK….to know your own value and not cave! Thanks for sharing a great story…that will inspire each and every one of us as we move through life!
Rita Brennan Freay
ritabrennanfreay.com
Wonderful story and wonderful post! “Your fee” and “your worth” are topics my colleagues and I talk about ALL the time, and I blog about it occasionally, too. Budget is a BIG issue for everyone these days, we’re usually invited to negotiate on every transaction. More often now than in headier times. My favorite is the prospect who cries “WHAT?”, when you mention the fee, no matter what you quote. Sooner or later, we all need to learn a few tactics to help us clarify our worth to others, and I look forward to reading your further comments.
WOW! Love that! Now that is what I call knowing your value. Inspirational! Definitely when I started out I was unsure of my value and I was okay with what I could get, but as I see my value because I’m taking more action and being more daring in my life then I totally see my value. I see what I bring to my clients lives and to the ladies that attend my workshop. BUT this definitely will make me see if I need to re-evaluate my value. Hmmm….
Thank you.
xoxo
Alara K Castell
Your Sassy Spiritual Guide
Ma’am, you are ballsy and I LOVE it! Of course it’s not just being bold, it’s as you say, knowing your worth and owning it. I still struggle with charging fees that match my worth. I know I’m good at what I do and if someone doesn’t want to pay me that, then they are the wrong client – but in practice, I often back off. I recently had a potential business client that thought my project fee was too high, he suggested that his business would lead to lots more business for me, but I would not back down and suggested ways he could save money on the project. It did not turn out as well as your BMW contract, but I don’t feel I should have done anything differently. I have clients who will pay that and more, so I know he was the wrong client.
Fiercely unapologetic! Love it! I just coached one of my clients on the same topic: understanding her worth. She’s a niche speaker and she wanted to sell a $75 product from stage, rather than her $995 higher-ticket product (because it felt safer and she thought she would close more people.) I just received this note from her tonight:
“Hi Alicia,Thanks so much for all the help and wonderful suggestions in selling my [deleted to protect privacy] packages. I had a great presentation today and sold one of my packages with 8 [people] in attendance. Your idea of selling the $995.00 package over the $75.00 assessment package was a smashing success. Even if I had sold 100% of 8 at 75.00 it [would be only $600]. The great news is that the [person] that signed up is a [person] that serves hundreds of other [people]. Thank you again Alicia!!! I so appreciate you and your brilliance… “[ *Note the brackets are mine to protect identity of my client]So she learned that selling a higher ticket package at $995 to one person was a bigger “win” then selling a $75 package to all 8 attendees ($600)!It pays to think BIG and understand your WORTH.Congratulations on BMW, Ann, and thanks for sharing!
I have trouble with this one for sure. I always feel like I should charge my clients less or pay my contractors more and take less of the pie for myself. But, ultimately, what I do for my own company is where the value lies, because if it weren’t for me, none of it would work. I actually have been thinking a lot about the rates I charge and this advice was very timely for me. Thank you for the insight and wisdom.
As a new business person, I think I struggle with the value issue. My years in education often drive my mindset, rather than that of a business person. However, I am starting to change my mindset. I like how you handled BMW–put it in their terms to get them to understand it!
Ann, this is such important advice for business owners and employees alike!
I first learned this by watching a colleague in the practice raise his prices by 20% and get busier!
The first place this concept showed up as a decision for me was with insurance companies. They repeatedly offer less money for the same work. Deciding to stop taking their money meant saying goodbye to a few of my regulars, but I also said goodbye to the pit of dread in my stomach.
Congrats on BMW, Ann : you’ll rock it, of course.
No one can afford me.
God I love this and it is perfect timing to hear it. I now have a small branch of my biz where I can offer value to folks at low cost, and now ask for true value for the main focus of what I offer. Gawd, drom this message into my head enuff, universe and I may be Getting it. Thanks once again, Ann
Don’t let
anyone talk you out of what fuels your dreams.