Question: “How do I determine the value I provide my clients?”
In a world where certain executives are paid hundreds of millions of dollars even when their banks fail, and other people aren’t paid a living wage for offering essential services… questions of “value” and “compensation” can look pretty confusing, right?
What I love about this question is it the writer isn’t even asking how much to charge. He starts where he should… looking at the value he adds.
I also am so glad he doesn’t say, “how much I’m worth.” Your worth is priceless. And irrelevant. Because your own sense of your own value will change every five minutes.
For those of you who have my Financial Alchemy workbook, you know that Affirmation #3 is “People LOVE to give me money, because I add value to their lives.”
The first place to look is at that value.
I’m hearing/interpreting/guessing there are a couple of questions here:
- WHAT is the value? What is the BENEFIT of your product or service? For instance, do your clients experience more health, wealth, love, freedom, confidence, beauty, peace of mind, lower costs, lower anxiety, lower taxes or whiter teeth… ? And if they experience multiple benefits, which ONE do they value the most? And which ONE (this may be a different answer) did they HIRE you for in the first place?
- HOW MUCH is the value? Now we can look at “what is that benefit worth?” What is the cost of NOT working with you–of either continuing with their problem, or working with someone who may not be able to help them as well? Look at the financial cost of putting off a solution, the emotional cost, the health cost, the happiness cost… get the picture? Take a look at the cost of the problem when you start to factor in the value of the solution.
This is an AWESOME opportunity to get feedback from your past, current, and prospective clients. You may discover you’re charging too little. Or too much.
My rule of thumb: whatever you do should solve a problem that is more painful than your fee.
ASK YOUR MONEY HONEY what she/he thinks you should be charging for your work.
Here’s a BIG SECRET of my work… shhhhhhh!
When you change your relationship with money from a Monster into a Honey who loves you, it will become PHYSICALLY PAINFUL to undercharge. You’ll feel ill in your skin, like you’re lying, like you’re out of integrity, like you’re betraying yourself. Eventually the discomfort will become so acute (I get a sinking feeling in my gut, like I want to cry) that it becomes IMPOSSIBLE to undervalue yourself. You just can’t do it.
This is true for me. I’ve heard the same thing from my clients.
Nice problem to have, isn’t it?
Now let’s hear from you, Audience… do you have any comments or tips to share? What questions helped you determine the perceived value you add to your clients’ lives? Please post below!
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