Pricing seems to be the biggest obstacle that most entrepreneurs face.
And what I’m noticing is that just because you work from home (or just started out or have a small office with just you as the only staff member) doesn’t mean you need to be lowering your rates.
And some of you just plain lack confidence in your own ability to command higher prices.
“Oh, but my competition charges so little that I need to keep my prices low to get work.” – is the typical response I hear.
Your competition in most cases doesn’t know what to charge so they lower their prices to be cheaper, and like moths attracted to a bug light everyone follows suit. That madness is the fastest way to go broke and kill your business.
Honestly, the people you attract with those low prices tend to be customers that the high priced services have already rejected as PITA’s (pains in the asses). Low price attracts low paying customers. And there’s a reason they are called PITA’s…they don’t value what you do, they complain the loudest, they aren’t loyal, they only want the deal and if the deal is no longer available they go to the next cheapest person. Oh, and they usually have the worst situations they want you to help them overcome.
Why put yourself through that? Why lower your standards to cater to those who really aren’t your ideal client?
Yet, when you don’t charge enough, and take on clients that don’t value what you do, you end up miserable, stressed out and short on funds to pay bills. That doesn’t sound fun does it?
Start being confident in your ability, and raise your prices…not to be in competition with others, but to actually create a business you enjoy that’s profitable and allows you to have a fantastic life.