How Do You Value/Put a Price On Your Services?

How much is a car? Is $10,000 expensive? Well, for a wreck with no engine, it’s far too expensive, but for a brand new Porsche, it’s too cheap. We should evaluate cost relative to the  value it generates, shouldn’t we?

A character called me tonight – he’d picked up my business card somewhere and he wanted to know what I can do for Network Marketers. Long story – he wanted to know if I would come over to his house and talk with 30 of the people in his ACN downline for two hours. I said, sure – for a thousand dollars plus taxes I would talk to them for 90 minutes. And that is a GREAT deal. Because what they learn can potentially be repeated and leveraged thousands of time in their own downlines.

Then he wanted to know about the fees I charge for my coaching service. I told him I wasn’t sure I would even accept him as a client, but we could discuss it, and then, depending on WHETHER I wanted to work with him, and what I thought I could do for him, I would tell him what the cost would be.

See, if you base your fees on what others charge, what you think someone can afford, or what you think is “reasonable,” you have no idea how to value your service. The “COST” should depend on the Return on that Investment. If you have sales of $100,000 and I show you how to increase them by a mere 10%, a reasonable fee for that service would be anything up to $10,000 because you would pay me once, yet you could continue to increase your sales by $10,000.

If you were a franchisor with a number of franchisees or you had a business with a few branches or dealerships or distributorships, you could multiply your Return on Investment with the right business advice.

And I NEVER offer discounts or drop my price. Why? If I quoted you $5,000 per month and then dropped my fee to $4,000 per month, I would in effect be admitting that I was actually overcharging / ripping you off at $5,000 wouldn’t I?

I am the only coach that does what I do, and there is only one of me. And I have limited time – I can only accept a limited amount of clients. I am a scarce commodity. Yet there are millions of potential clients out there for me. Ahnd in this worsening economy, my business is booming. So I can afford to be selective. I know what I can do, and I have a proven track record, so I can be confident that I can justify any fee I charge as reasonable, justified, and fair, as well as a great investment option for my clients.

When you pull numbers out of the sky based on teacup readings or “gut feelings” or what you think your client can afford, or is prepared to pay, you’re a fake. Don’t feel bad, there are millions of fakes out there pretending to be experts. My dad call and expert (ex spurt) “a drip under pressure,” and in most cases he’s right.

Real professionals respect themselves and they know how valuable and scarce their services are. How about you?

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