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| Jul 12, 2006 3:55 pm |
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re: Why do people think that they can get things for free? |
Mandy Minor
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Hi Bonni,
I have only read your original post and not the responses, but your post touched on SO MANY of the pains that we’ve felt that I had to just start writing. We've overcome many of these obstacles and I hope our experiences will help you.
First, you have to stop referring to yourself as a home-based business owner or small business owner RIGHT NOW, and start referring to yourself as an entrepreneur. The difference is psychological but so important. You're taking a risk, seeing opportunity where others don't, and those are the definition of entrepreneurship. This slight difference in your own perception of yourself will rub off on clients, who will start to see you as the professional you are - which will go a long way toward stopping this nonsense about your prices.
Second, how on earth are you doing brochures in 2.5 hours?!? A good brochure takes anywhere from 8 to 16 hours - and that's just a regular tri-fold. You have to do some research on what others are charging and go with it, so a couple of reasons. One, if you don't charge enough people won't see the value of your work. They'll see cheap/inexpensive and think the same of your quality. Second, when a few people charge less that the rest of us it hurts us all. Clients don't know the work and creative effort that go into a brochure and assume that if you can do it in 2.5 hours I should be able to, too. As a professional copywriter and designer I'll tell you a great brochure cannot be made in 2.5 hours.
Third, more pricing. Do your research. Get a worksheet to help you set your prices. We worked with a business coach to reevaluate our pricing, and realized that we should be charging $75 and hour rather than $60. Since making that change we've gotten TONS more business, and from the type of clients we want - those that pay willingly because they value our time and expertise. Check with SCORE about getting a free business coach. It’s a great organization of retired CEOs and executives who offer their expertise free of charge – you can’t beat it!
Fourth, more pricing again! You can’t quote on an hourly rate – quote on a project basis. It’s really none of their business how long it takes you, and all their concerned with is the bottom line, anyway. When clients see hours on a quote they think the time you’ve quoted is negotiable, and it’s not. It takes as long as it takes to make quality work, period.
Fifth, you do NOT need to be in a position where you argue about your pricing. Our pricing is based on our overhead, expenses, and the profit we want to make. The minute someone starts to argue with me about the price is the minute I say "I don't think we're a good fit for each other." Because not only will they argue about price - they'll want work done immediately, will take forever to pay, and will generally be a pain in the butt! So, fire those clients ASAP!
I hope this helps you - I know since we've made these pricing changes and stopped being afraid to turn down the wrong type of clients we've been much more profitable, and a lot happier.
It's IMPERATIVE that your prices are based on science and the facts of your business - including profit margins - rather that picking a number out of the air. Your confidence in your prices will increase, and again this will come across to your clients.
Best,
Mandy Minor
www.JAllanStudios.com
Private Reply to Mandy Minor (new win) |
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