Someone, let’s call him Jim, came to me with a (good) problem.
Jim had been approached by a company that wanted to hire him.
The company wanted to know how much it would cost to hire Jim for his work.
Problem: Jim didn’t know what to charge.
Although he’s good at his work (he’s receiving incoming requests, after all), Jim is still somewhat inexperienced. He doesn’t have a set price for specific work; he’s done most of his business by gaging what he thinks his prospects can afford and hoping they say “yes.”
Mix that guessing game with Jim’s own insecurity around his worth and around “losing” money that he never had in the first place, and Jim’s whole pricing mindset is fucked up.
So it only makes sense that Jim had a myriad of objections when I told Jim what to do.
“Tell them that your fee is $XX,XXX, paid in full up-front. And that you’ll schedule to begin the work as soon as they’ve paid the invoice.
“Then shut up, and don’t say anything else. Let them answer. “
Jim looked at me as if he’d seen a ghost.
“I’ve never asked for that much…
“I’m not that experienced to demand that, Dre!
“What if they say no?”
All legitimate objections. I suppose.
Let’s address them.
1) Let’s say that you’re used to charging $1, and you aim to one day ask for (and get) $10.
Would you like to fast-track this plan of yours, to, say… NOW?
It can be done.
Here’s how: START ASKING FOR $10.
I highly doubt that any client of yours will ever say, “hey [your name], you’re worth a lot more than X — how about you charge me 10X instead? I’ll gladly pay it!”
They’ll either a) pay you the little that you asked for, or b) look elsewhere, as your low priced ask makes you look low-quality and probably-not-very-good.
Price is a story. Nothing more. The story you and your prospects tell determines the price.Price is a story. Nothing more. The story you and your prospects tell determines the price. Click To Tweet
2) People buy what they want.
Let me restate that another way.
People buy what THEY want.
They don’t really care about you. You just happen to be the vessel that helps them get what they really care about: what THEY want.
When someone really wants something, the price doesn’t matter.
I told you last week how I have to pay $200 extra to get the crown for my tooth.
Do I want to spend $200? No.
Do I want that tooth repaired more than I want to save $200? Yes.
Your experience and background don’t matter.
They only matter when people move past emotion (the true driver of purchase decisions) and into logic — and they use this logic to justify both yes and no decisions.
Your experience does not determine your worth (yeah — I know you think it does; it doesn’t ). Your worth is determined by one factual piece of information: that which you accept.
If you want $10, but you accept $1, what is your worth?
ONE DOLLAR.Your experience does not determine your worth (yeah — I know you think it does; it doesn’t ). Your worth is determined by one factual piece of information: that which you accept. If you want $10, but you accept $1, what is your… Click To Tweet
if you want $10, accept nothing less.
Which leads to…
3) They might say no.
This is true. I’ve had it happen to me. Price was too high, they said.
I said: “Well, thank you for reaching out. Have a nice day.”
They might say no.
Maybe because they’re trying to play you out of money.
Maybe it’s because they really don’t have it.
This is the REAL fear most client-based entrepreneurs have around pricing. It’s why many client-based entrepreneurs can have a roster full of clients but still not be satisfied with the money they’re earning.
Let’s assume they DO say NO.
How much did you lose?
If I had charged $5 instead of $10, you reason, they may have said YES.
If they really wanted you, they’d pay the $10.If I had charged $5 instead of $10, you reason, they may have said YES. Probably not. If they really wanted you, they’d pay the $10. Click To Tweet
And if you’re a $10 person, you’re not playing around with $5 what-ifs. You need to make a decision.
All of life is one long negotiation. The powerful entity in any negotiation is the one who is most willing to walk away from the table.
Most people, in and outside of business, are just looking for acceptance. From anyone. At any cost.
Life, the shrewd-negotiator bitch that she is, takes them for everything, until they’re giving away everything for free.
All because they’re afraid to walk away.
Afraid to have posture.
Afraid to demand what you want.
If they say no, GOOD. Now you’re filtering people out with your price.
You do this already, by the way — just not with money.
There are certain things that you don’t let people say to you.
There are certain actions that people couldn’t do to you.
There are certain circumstances that, should they present themselves in your life, you would stop what you were doing to change things.
These are filters.
Any situation, behavior or circumstance that you refuse to accept is a filter. Because you refuse to accept it, it leaves you alone and finds someone else to bother.
So, what if they say NO?
Now, go find the people who are saying YES.So, what if they say NO? Good. Now, go find the people who are saying YES. Click To Tweet
Listen to the following MasterClasses on price, sales, and posture —
#225: Price Vs. Cost: The REAL Problems People Have With Money
#1212: Price Is A Story
#1181: “What If My Price Is Too High?”
#1102: Raising Your Prices: The Logical And Emotional Understanding Of Why
#835: Your Price Is Too Low
#785: Freelancers & Solopreneurs: How & When To Raise Your Prices
#735: Hot Seat: I Keep Lowering My Prices To Get Clients! [Jasmine from Brooklyn, New York]
#625: How To Sell Without Being “Sales-y”
#1247: Developing Your SALES Mindset
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