How Much Are You Worth?

What do you want to do differently in 2008? I hope on your list of goals, dreams and visions for 2008 is that you want to earn more money!

Having “more than enough money” in your life makes everything easier. Why can I say that? Because I had a time in my life when I didn’t have money to put more than $5 of gas in my gas tank or have money for the laundrymat. Most of my life however, I have made a substantial income every month and been able to focus on other important things in my life. From my own personal experience, I have discovered that it’s easier to have “more than enough money” in your life. And wouldn’t you agree that EASIER is a great way to operate your life.

So let’s make you more money in 2008, shall we? It all starts with one important question: How much are you worth?

It’s a very common issue to struggle with what to charge in your business. Really, what makes one person’s time worth $10 per hour and another person’s time worth $250 per hour? What is your time worth? How can you determine that and then subsequently feel good about your decision as you market yourself with integrity.

It’s easy when you get hired for a job because the hourly rate is usually determined by the employer. When you are an entrepreneur, it’s an entirely different scenario. You alone determine your hourly wage and that can make you squirm with a certain degree of discomfort.

So what are you worth an hour? $50, $75, $100, $150 or $300? Here are some thoughts for you to consider in determining your personal dollar value.

Your dollar value is simply a numerical figure that is viewed as acceptable by a portion of society that needs to encompass your market.

You may need to read that again and I actually encourage you to do so. Think about it. I charge $150 per hour and that numerical figure is viewed as an acceptable exchange of money for my time by my marketplace. People who have never hired a coach and are not used to paying more than minimum wage for anybody’s services will think that price is absurdly high. That’s okay because those people are NOT my market. The question you need to ask yourself is: Does my market view my price as reasonable?

What you charge per hour is a HUGE reflection of the value you place on your expertise. Many entrepreneurs under-estimate their value because they don’t have letters after their name or they don’t have a higher education in their field. You may not have a certificate hanging on your wall. That doesn’t need to make you feel uncomfortable or have you questioning your value.

The dollar value you place on your time represents the value you bring to your client. Spending an hour with me, working through your business challenges or planning your business can make you many times more than what you spend monetarily with me. Therefore the value is there and people willingly pay the price. If the perceived value to their business did not exist, trust me, they wouldn’t pay me and they won’t pay you either. So the question to ask yourself is: Do I give value in  my business that is greater than the dollar amount I am charging?

If the answer is yes, then your hourly rate is justified and will be respected. If the answer is no, then you will already be very aware of that because you probably aren’t receiving referrals or your business is stagnant. You’ll then need to look at the value you are bringing to your clients.

So why can one person charge $300 for the same service as another person who charges $75 per hour? And why can they both have clients? One thing to remember is that there will usually be a market for both ends of the spectrum just like there is a market for a fast food chain at less than $2 for a meal and there are five star restaurants that charge $200 for a meal. You can buy a sweater at Walmart for $10 and you can spend $500 for a sweater at an upscale department store. It’s probably the same in your field.

I target a market that can afford $150 per hour but I could also choose a market that would pay me many times more than that and with the proper marketing and my own mindset being in harmony with that figure, I know that I could earn that. There are people who will pay $75 for a coach, $150 and $750 per hour and that probably applies in your field also.

And there’s an important fact to know. What you charge per hour will be largely determined on the value that you feel about yourself.

It’s actually much easier to determine that a sweater is worth $100 because of it’s material, how it was made, where it was made or perhaps because of it’s limited nature. It’s more challenging to determine your worth. What you charge per hour has far more to do with YOUR comfort level than it does with your client’s.

Increase your comfort level and your dollar value will also increase. Increase your self-worth, self-esteem and self-confidence and you’ll automatically give yourself a raise.

Spend some time looking at this subject over the next few weeks before the New Year. Look at other professionals in your field and find out what they are charging. Being the lowest priced is rarely the best, especially if you are trading time for dollars as your time is limited by the hours in a day. If you are too cheap, people will wonder what’s wrong with you, why you aren’t charging more or be more suspicious. If you charge a higher fee, they will oftentimes be more intrigued by what you offer, respect you more and will feel they got more value than from a lower priced offering.

A very successful business mentor once said to me, “Jan, if nobody is telling you that your price is too high, then you aren’t charging enough.” Apparently, the rule of thumb is that at least 50% of your prospective clients should be rejecting your service based on price. Whether or not you choose to go with that philosophy or not, is up to you. But if you are unhappy, feeling angry, resentful or bitter about what you are charging, that energy is being conveyed to your prospective clients whether you
are aware of it or not. If you doubt your value, they are picking up on that for sure. And if you aren’t making the kind of money you want to be making, then you really need to be looking at your hourly rate because your unhappiness and stress around money is affecting your business also.

Are you good enough? Absolutely! Are you good enough to be charging the prices that you are charging? The proof is in the pudding. Is your business growing and expanding? Are your clients telling others about your product, service or store? If not, then take a serious look at what you are offering. There is usually more than meets the eye to this one so don’t take a cursory glance and avoid the deeper issues.

Making money is an important part of your business. Creating your own financial freedom, however that looks to you, is important if you want to have the time, energy and financial resources to make a larger difference in the world than you are currently making. Having “more than enough money” in your life will allow you to enjoy a more relaxed lifestyle and business life. It’s a real blessing in your life to have enough to look after yourself, your family with some extra for others. Ask for that blessing in your business.

Have some fun with this and may you enjoy an even more prosperous 2008!

To Your Outrageous Success!

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