As your skills as a marketer or businessperson grow, one of the best ways to increase your revenue is to raise your rates.
Because you’re getting better at what you do, you can give more value for the same amount of time and effort, and your pay should rise accordingly.
But sometimes, that’s easier said than done. Not because your clients won’t pay what you’re worth, but because YOU won’t ask for it.
You’re used to valuing yourself at a certain level, and when you think about asking for more, uncertainty floods in. “What if they say no? What if I can’t give them enough value to be worth that? What if they’re disappointed, or they take their business elsewhere?”
All too often, people will allow those fears to make them underquote, so even though they’re attracting clients, they’re still losing a lot of potential revenue because they’re being underpaid.
In this blog post, I’ll help you to make a shift that will allow you to not only make the income you deserve, but also to serve your clients more effectively, so they WILL be happy to pay you what you’re worth.
It’s all about the questions you ask.
Right now, you’re probably asking yourself two questions when you set your prices. They are,
“What are my clients willing to pay?” and “What is my competition charging?”
While it’s true that these questions may come into play when your client is considering your offer, you can’t rely on them when you’re setting your rates. If you do, they will limit your income, and keep you from seeing and showing your own true value.
It also places imaginary limitations on your clients’ buying power, when in reality those limitations might well exist only in your mind.
What can you ask instead, that will give you more income and your clients better service?
The next time you’re about to set a rate, start by asking yourself, “How much money would make this job worth my time?”
This can be uncomfortable, especially if you feel it would be unfair to your clients, or are afraid of scaring them off. But it has to be done – in fact, I’d like you to do it right now, before you continue reading.
Once you’ve done that exercise, if you feel like this figure is too high, DON’T lower it.
Instead, ask yourself: “How much value am I giving?”
How much time will you save your clients? How much money will you MAKE for them?
How much will their health, mindset, lifestyle or relationships improve?
How much happier will they be after they work with you?
Remember, it isn’t just about the effort you put into the job. It’s about the benefit that your work gives to your clients.
What if the value you’re offering seems like less than the price you want to charge?
Once again, do NOT drop your rates. Instead, raise your value.
For example, I was recently hired to help one of my clients rewrite her ‘about’ page. I wanted the page to reflect her real story and the source of her passion, instead of reading like an encyclopedia.
To do this, we needed to have a conversation via Skype, and I wanted to be paid $75 for the time we were going to spend on that. But simply getting her to tell her story didn’t feel like it was enough; I wanted to give her real value for the money I was charging.
So I made her an offer: while I was getting the story for her page, I would also teach her how to tell her story in a way that drew her clients in, so she’d be able to use that skill any time she needed to.
She agreed, and was happy to pay me $75 for the call.
Are you charging as much as you want to be?
If not, when are you going to raise your prices?
If you don’t feel like your services warrant a price increase, how will you raise their value so they WILL be worth it?
I look forward to reading your opinions, insights and commitments in the comments.
Stephanie O’Brien is a copywriter, marketing coach, entrepreneur, novelist, and self-growth addict. She uses her twelve years of fiction-writing experience to make her copywriting fun and inspirational as well as effective, and her lifelong exploration of the human mind helps her to get inside her clients’ heads, pick out the words they’re trying to find, and put them onto paper.
Fred W said
Dec 23, 2014
"Remember, it isn't just about the effort you put into the job. It’s about the benefit that your work gives to your clients."
I personally feel this is where most people fall down in business. You should always put your clients first. Be sure they are receiving the value in what you are doing.
AC Lockyer said
Dec 24, 2014
Great content!
Too many sell them selves short. We need to encourage each other to raise our prices to save the industry.
AC
Art O said
Feb 21, 2015
What can you ask instead, that will give you more income and your clients better service? Quote!
Dunrite said
Feb 21, 2015
How many get asked first weather on the phone or in person "How much to do..."
Its easy to fall into the trap but the price should be the last thing we answer without building value
I had a guy call me and tell me "look i have no time to waste this is what i got-how much"
Sure i couldve quoted him but i wanted to build value so i told him i needed to see what we were talking about
After going back and forth i went out there looked it over- built a rapport and discussed our process on how were different with our process...then gave him the price
Ed Thompson said
Feb 21, 2015
Dunrite wrote:
How many get asked first weather on the phone or in person "How much to do..."
Its easy to fall into the trap but the price should be the last thing we answer without building value
I had a guy call me and tell me "look i have no time to waste this is what i got-how much"
Sure i couldve quoted him but i wanted to build value so i told him i needed to see what we were talking about
After going back and forth i went out there looked it over- built a rapport and discussed our process on how were different with our process...then gave him the price
I'm the opposite Mike. I like to give the price first, then build value. When you take your car to the mechanic (or whatever) and they start explaining all the things wrong, it's hard to even listen because the only main thing you really want to hear is the price. Everything else is blah blah blah. I always give the price then immediately follow with "and here's what you get for that cost". If you give the price first I believe they will actually pay more attention to your value. Also, when you give the price first you get the S/H impact out of the way. By the time you're done explaining your value the impact of the price has lessened.
I learned that from an old school plumber when I was in the trade. It made sense and works well for me.
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:13 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:55 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:10:08 PM
Ed Thompson said
Feb 21, 2015
TYPO: not S/H impact, S/H impact. I tried to edit 3 times but it keeps going back to S/H
Dunrite said
Feb 21, 2015
Ed Thompson wrote:
Dunrite wrote:
How many get asked first weather on the phone or in person "How much to do..."
Its easy to fall into the trap but the price should be the last thing we answer without building value
I had a guy call me and tell me "look i have no time to waste this is what i got-how much"
Sure i couldve quoted him but i wanted to build value so i told him i needed to see what we were talking about
After going back and forth i went out there looked it over- built a rapport and discussed our process on how were different with our process...then gave him the price
I'm the opposite Mike. I like to give the price first, then build value. When you take your car to the mechanic (or whatever) and they start explaining all the things wrong, it's hard to even listen because the only main thing you really want to hear is the price. Everything else is blah blah blah. I always give the price then immediately follow with "and here's what you get for that cost". If you give the price first I believe they will actually pay more attention to your value. Also, when you give the price first you get the S/H impact out of the way. By the time you're done explaining your value the impact of the price has lessened.
I learned that from an old school plumber when I was in the trade. It made sense and works well for me.
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:13 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:55 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:10:08 PM
I guess whatever works
For me whenever i gave a price i felt like they weren't even really listening anymore and didn't really care-they got what they wanted
I always felt like my price was all i had and i was going to hold it and not give it away so quick
especially the more involved the job was
Andy Hinson said
Feb 22, 2015
Sometimes cheapest price is all they want. Could care less about anything else. Just have to let them dial the phone book
TigerWash said
Feb 25, 2015
Andy Hinson wrote:
Sometimes cheapest price is all they want. Could care less about anything else. Just have to let them dial the phone book
I've found this to be true. You can't win with the price shoppers -- give it to the hacks
Art O said
May 9, 2015
I'm geting a lot of calls, How much to wash my house. When I ask for there address. Some of them don't want to give it to me. OK no Price.
Jeff Thompson said
May 9, 2015
When I was working in Michigan it took 3 years to build, but I had a good business making the kind of dollars I should have been getting. My recent move down here to Florida it is evident that the $200.00 roof washer and the $60.00 house washer are king, at least around me.
The customers are looking at the bottom line and the end result. Doesn't seem to matter to them what so ever soft washing is by far a superior service. I get more $$ around the coastal area homes, but still not what I should be getting, not even close. Everyone is used to the cheap services.
I don't think most people really take notice to the value built into soft washing until someone has damaged their property by pressure washing it. My pitch seems to fall on deaf ears, or they just can't comprehend how getting something clean by using no pressure is even possible. Lost a job the other day to a pressure washer because I offered him a guarantee....he told me it was dubious and didn't trust me.
I've been trying to hold price and keep the industry strong, but the desire to eat is starting to win over the desire to prove to everyone I have the best process and you should pay more for it. I will aggressively be going after every job, even if it means working for less than I want to. Hopefully I will build a reputation of great service with great results, getting repeat business and work of mouth work. Can steadily raise prices as I go.
In conclusion....Getting paid what you are worth depends on the market. I think "price" is what a market will pay, not what you think a market should pay.
Diamond Roof Cleaning said
May 9, 2015
Art I get 20 calls like that a week. Only a 1/3 actually want a real estimate the rest are just shopping price.
Michael Wedge said
May 11, 2015
I guess I am the odd ball, I never quote over the phone. If your not willing to meet up and take advantage of our free estimates than sorry move along please. I schedule all my estimates for Tuesdays and Sundays so there is no excuses of working or whatever! works for me and my closing rate is way higher because of this I believe
John Aloisio said
May 11, 2015
Mike,
you are not the old ball. Either me or one of my sales guys goes to every estimate. Doesn't matter if it's just a deck cleaning, because we usually wind up selling them something else. I do qualify everyone and let them know some minimums before we go out there.
Dave O said
May 11, 2015
When someone calls me to inquire about price I first explain to them that the price depends on many factors including: size of house, number of stories, slope, degree of infestation and the distance to travel. I then tell them the median price while also informing them, based on the previously mentioned factors, the price could range from $300 to $2000. They almost always then request a quote.
Fred W said
May 11, 2015
Michael Wedge wrote:
I guess I am the odd ball,
Yep.
I do the same. About 6 months ago I had a guy text me for a price. Texted back that I don't do that. He sent me back a "pissy" text. I looked up the number and it belongs to a lowball pressure washer guy. So I texted him the price I would have charged based on the info he gave me. To which he replied...WTF its only an hour and $25 in chemicals.
Off topic sorry......
I schedule on Saturdays and evenings but am so busy I have found myself giving roof quotes without a site visit. I hate it but need help first. I can also say that my close rate, in person, is very high.......internet quotes....not so much.
Art O said
May 12, 2015
I gave a guy a price over the phone for $375 for a high ranch in a high end town. Smuck calls back and leaves me a message and says he only wants half of the house done and his vinyl fence and he will give me $300. Not Happening!!!!
DirtyRoofcom said
May 13, 2015
Art O wrote:
I gave a guy a price over the phone for $375 for a high ranch in a high end town. Smuck calls back and leaves me a message and says he only wants half of the house done and his vinyl fence and he will give me $300. Not Happening!!!!
$375 for a high ranch? Thats a steal, no wonder Im losing jobs. . . . .
Ive had the same type of calls, except i very rarely negotiate my price. I believe We charge a fair amount to run our business and the price i give the first time is our best price.
I did a gutter brightening job for a customer. We wound up damaging two window screens. Instead of repairing them with some cheap material, I bought new screens and dropped them off this evening. It did hurt the profit on the job but the customer was in awe and over satisfied. You cant put a dollar amount on that. If i had charged what the lowballers do I would of lost money.
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:42:43 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:43:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:44:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:45:07 PM
Patrick G said
May 13, 2015
I think Art was charging just for the front roof, he had called me earlier today.
Art O said
May 14, 2015
DirtyRoofcom wrote:
Art O wrote:
I gave a guy a price over the phone for $375 for a high ranch in a high end town. Smuck calls back and leaves me a message and says he only wants half of the house done and his vinyl fence and he will give me $300. Not Happening!!!!
$375 for a high ranch? Thats a steal, no wonder Im losing jobs. . . . .
Ive had the same type of calls, except i very rarely negotiate my price. I believe We charge a fair amount to run our business and the price i give the first time is our best price.
I did a gutter brightening job for a customer. We wound up damaging two window screens. Instead of repairing them with some cheap material, I bought new screens and dropped them off this evening. It did hurt the profit on the job but the customer was in awe and over satisfied. You cant put a dollar amount on that. If i had charged what the lowballers do I would of lost money.
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:42:43 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:43:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:44:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:45:07 PM
This was a house wash not a roof wash
Steve Salley said
May 28, 2015
Maybe someday our phone will ring so much it will be just a numbers game, but right now either I or my salesman make the site visits. When I go, I love to take the service truck and do spot demos. The price is so much less of a factor when they see what we will accomplish. The wow factor seems to open checkbooks.
Our average job is about $1000, so we are willing to meet and greet, and our closing rate is 95% or better, with onsite visits.
The people who call us and want a phone price usually go away because then cannot "see" how their investment will pay off.
We did have a funny experience when an older gentleman called from a neighboring town and after visiting with him I asked him what his address was. I told him I would pull up his house on satellite view and then we could talk more accurately. He said " That makes me really uncomfortable to think you can stand in front of my house from your office...
Guess he was not kidding cause he did not call again... Maybe it was the jetson spaceship and the silver suit we had on when he looked out the front window...
It’s guest post day here at Duct Tape Marketing and today’s guest post is from Stephanie O’Brien – Enjoy!
photo credit: Coin graph by Petr Kratochvil
As your skills as a marketer or businessperson grow, one of the best ways to increase your revenue is to raise your rates.
Because you’re getting better at what you do, you can give more value for the same amount of time and effort, and your pay should rise accordingly.
But sometimes, that’s easier said than done. Not because your clients won’t pay what you’re worth, but because YOU won’t ask for it.
You’re used to valuing yourself at a certain level, and when you think about asking for more, uncertainty floods in. “What if they say no? What if I can’t give them enough value to be worth that? What if they’re disappointed, or they take their business elsewhere?”
All too often, people will allow those fears to make them underquote, so even though they’re attracting clients, they’re still losing a lot of potential revenue because they’re being underpaid.
In this blog post, I’ll help you to make a shift that will allow you to not only make the income you deserve, but also to serve your clients more effectively, so they WILL be happy to pay you what you’re worth.
It’s all about the questions you ask.
Right now, you’re probably asking yourself two questions when you set your prices. They are,
“What are my clients willing to pay?” and “What is my competition charging?”
While it’s true that these questions may come into play when your client is considering your offer, you can’t rely on them when you’re setting your rates. If you do, they will limit your income, and keep you from seeing and showing your own true value.
It also places imaginary limitations on your clients’ buying power, when in reality those limitations might well exist only in your mind.
What can you ask instead, that will give you more income and your clients better service?
The next time you’re about to set a rate, start by asking yourself, “How much money would make this job worth my time?”
This can be uncomfortable, especially if you feel it would be unfair to your clients, or are afraid of scaring them off. But it has to be done – in fact, I’d like you to do it right now, before you continue reading.
Once you’ve done that exercise, if you feel like this figure is too high, DON’T lower it.
Instead, ask yourself: “How much value am I giving?”
How much time will you save your clients? How much money will you MAKE for them?
How much will their health, mindset, lifestyle or relationships improve?
How much happier will they be after they work with you?
Remember, it isn’t just about the effort you put into the job. It’s about the benefit that your work gives to your clients.
What if the value you’re offering seems like less than the price you want to charge?
Once again, do NOT drop your rates. Instead, raise your value.
For example, I was recently hired to help one of my clients rewrite her ‘about’ page. I wanted the page to reflect her real story and the source of her passion, instead of reading like an encyclopedia.
To do this, we needed to have a conversation via Skype, and I wanted to be paid $75 for the time we were going to spend on that. But simply getting her to tell her story didn’t feel like it was enough; I wanted to give her real value for the money I was charging.
So I made her an offer: while I was getting the story for her page, I would also teach her how to tell her story in a way that drew her clients in, so she’d be able to use that skill any time she needed to.
She agreed, and was happy to pay me $75 for the call.
Are you charging as much as you want to be?
If not, when are you going to raise your prices?
If you don’t feel like your services warrant a price increase, how will you raise their value so they WILL be worth it?
I look forward to reading your opinions, insights and commitments in the comments.
"Remember, it isn't just about the effort you put into the job. It’s about the benefit that your work gives to your clients."
I personally feel this is where most people fall down in business. You should always put your clients first. Be sure they are receiving the value in what you are doing.
Too many sell them selves short. We need to encourage each other to raise our prices to save the industry.
AC
Its easy to fall into the trap but the price should be the last thing we answer without building value
I had a guy call me and tell me "look i have no time to waste this is what i got-how much"
Sure i couldve quoted him but i wanted to build value so i told him i needed to see what we were talking about
After going back and forth i went out there looked it over- built a rapport and discussed our process on how were different with our process...then gave him the price
I'm the opposite Mike. I like to give the price first, then build value. When you take your car to the mechanic (or whatever) and they start explaining all the things wrong, it's hard to even listen because the only main thing you really want to hear is the price. Everything else is blah blah blah. I always give the price then immediately follow with "and here's what you get for that cost". If you give the price first I believe they will actually pay more attention to your value. Also, when you give the price first you get the S/H impact out of the way. By the time you're done explaining your value the impact of the price has lessened.
I learned that from an old school plumber when I was in the trade. It made sense and works well for me.
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:13 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:08:55 PM
-- Edited by Ed Thompson on Saturday 21st of February 2015 07:10:08 PM
I guess whatever works
For me whenever i gave a price i felt like they weren't even really listening anymore and didn't really care-they got what they wanted
I always felt like my price was all i had and i was going to hold it and not give it away so quick
especially the more involved the job was
I've found this to be true. You can't win with the price shoppers -- give it to the hacks
The customers are looking at the bottom line and the end result. Doesn't seem to matter to them what so ever soft washing is by far a superior service. I get more $$ around the coastal area homes, but still not what I should be getting, not even close. Everyone is used to the cheap services.
I don't think most people really take notice to the value built into soft washing until someone has damaged their property by pressure washing it. My pitch seems to fall on deaf ears, or they just can't comprehend how getting something clean by using no pressure is even possible. Lost a job the other day to a pressure washer because I offered him a guarantee....he told me it was dubious and didn't trust me.
I've been trying to hold price and keep the industry strong, but the desire to eat is starting to win over the desire to prove to everyone I have the best process and you should pay more for it. I will aggressively be going after every job, even if it means working for less than I want to. Hopefully I will build a reputation of great service with great results, getting repeat business and work of mouth work. Can steadily raise prices as I go.
In conclusion....Getting paid what you are worth depends on the market. I think "price" is what a market will pay, not what you think a market should pay.
Mike,
you are not the old ball. Either me or one of my sales guys goes to every estimate. Doesn't matter if it's just a deck cleaning, because we usually wind up selling them something else. I do qualify everyone and let them know some minimums before we go out there.
Yep.
I do the same. About 6 months ago I had a guy text me for a price. Texted back that I don't do that. He sent me back a "pissy" text. I looked up the number and it belongs to a lowball pressure washer guy. So I texted him the price I would have charged based on the info he gave me. To which he replied...WTF its only an hour and $25 in chemicals.
Off topic sorry......
I schedule on Saturdays and evenings but am so busy I have found myself giving roof quotes without a site visit. I hate it but need help first. I can also say that my close rate, in person, is very high.......internet quotes....not so much.
I gave a guy a price over the phone for $375 for a high ranch in a high end town. Smuck calls back and leaves me a message and says he only wants half of the house done and his vinyl fence and he will give me $300. Not Happening!!!!
$375 for a high ranch? Thats a steal, no wonder Im losing jobs. . . . .
Ive had the same type of calls, except i very rarely negotiate my price. I believe We charge a fair amount to run our business and the price i give the first time is our best price.
I did a gutter brightening job for a customer. We wound up damaging two window screens. Instead of repairing them with some cheap material, I bought new screens and dropped them off this evening. It did hurt the profit on the job but the customer was in awe and over satisfied. You cant put a dollar amount on that. If i had charged what the lowballers do I would of lost money.
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:42:43 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:43:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:44:14 PM
-- Edited by DirtyRoofcom on Wednesday 13th of May 2015 09:45:07 PM
This was a house wash not a roof wash
Our average job is about $1000, so we are willing to meet and greet, and our closing rate is 95% or better, with onsite visits.
The people who call us and want a phone price usually go away because then cannot "see" how their investment will pay off.
We did have a funny experience when an older gentleman called from a neighboring town and after visiting with him I asked him what his address was. I told him I would pull up his house on satellite view and then we could talk more accurately. He said " That makes me really uncomfortable to think you can stand in front of my house from your office...
Guess he was not kidding cause he did not call again... Maybe it was the jetson spaceship and the silver suit we had on when he looked out the front window...