Happy Friday Everyone.
Today’s topic is about “know your worth and price competitively but not so low you lose your edge”
To start I want to ask how many of you suffer from the lack of confidence that restricts you from pricing your product/service competitively.
After months, years of suffering from the lack of confidence in myself and the abilities that I had spent so much time and hard work building up I did not know my worth and I priced myself so low I was sinking for pennies. I realised I was spending hours, days and weeks earning £4 per hour at times.
This was a problem until I burnt out working for very little and I became resentful of the business I was building before I started to make the leap.
This had to change!
I got burnt out, I fell out of love with the business and I did not want to know anything relating to the business nor anything in my personal life.
This wasn’t why I created the business I wanted freedom, time and to be financially free. So I decided this had to change so I started to work out my average time for Web design, IT support and setting up the VoIP system then I set the hourly rate which was competitive and fair.
This created a set price structure which I never quote without, by doing this my confidence grew and when new clients started to agree their quotes I realised I spent so long quoting the business so low it actually lost the vital projects.
Losing the edge!
After quoting little for projects to ensure the work was coming instead of quoting correctly for the right projects I started to obtain clients which were great however the web projects took long hours to complete which lead to me burning out and losing my edge, feeling like I had failed myself because I was working for less than minimum wage. I was not earning to live the lifestyle I wanted for me and my family.
I did not want the Ferrari nor the big flash house I wanted to build the business up to spend time with the family and attend networking events to build the brand, instead, I built a prison that entailed long hours for £4 per hour.
The Final Straw and the Business Shift
After completing all the projects I sat down and started to think about how I would change the business and start to push forward with the new pricing. I started by creating documentation and procedures for pricing and signoff.
The documentation was created with the set pricing for ad hoc work, design, development and support. The new documentation was available to send out to potential clients, this created a huge shift for the business as the stresses of creating the quotes, proposals and ensuring the client was the right fit to work with had reduced by 70%.
confidence is a major issue for most people, we are constantly doubting ourselves and doubting our ability. This is setting us up for failure before we fail, we then use that failure as an excuse not to keep pushing forward to achieve our goals.
Subconsciously I think I did the same I thought I was not good enough to quote the proper pricing and I doubted my own abilities that I had worked so hard to obtain and become great at.
Where did I lose the confidence
The lack of confidence came from working at a company that I was unhappy at and that treat their staff like children, a number not professionals. There I worked with great guys one being a great engineer that built their original system, however, I noticed they treat him like he was nothing instead of treating him as the founder of their IT systems.
When I was there my confidence levels, passion levels were so low I decided I was not that person to sit there and be made to feel like I was nothing nor the person that will accept the type of methods they used to manage their staff so I had my meeting and parted ways. Instantly I could feel my passion and the drive coming back which later built my confidence levels up.
I was back, I was me, I was happy, I knew my worth!
After leaving the worst job ever and putting behind me the blood boiling thoughts of having to go into the office and expect to be treated like dirt, a number, a cog in the machine I was back my confidence was back alongside the passion to push further.
I soon went out and pushed the business 110% harder I obtained more and more web projects and started to partner with other companies on IT system installs. I knew my worth, I knew I was worth more to myself and my business than working silly hours to for someone else.
I used my time effectively and now I know my time is vital and a privilege I can use it to help businesses.
That’s all for today. I know it was a long post but I hope it helped at least 1 person.
Remember – to succeed you need to believe in yourself and your abilities. Don’t be a cog ready to fail to be the essence that accepts failure as a lesson and push not to fail.