One of the struggle’s entrepreneurs face is in pricing. How do you price your services or products without losing potential clients while also ensuring that you get paid what you’re worth? Pricing can be a challenging thing to navigate, but Dallas Mavericks CEO Cynt Marshall shares her thoughts on knowing your worth. She shares how she negotiated with Marc Cuban, owner of the Mavericks a fair compensation that was good for her and for him. She researched to better understand what she should ask for, and she got it.
Mrs. Marshall gave her comments at the National Speakers Association annual conference, 50th anniversary. She was the recipient of the philanthropy award from Nido Qubein, founder of High Point University.
Let’s unpack discuss the importance of knowing and charging your worth, understanding the other person’s expectations and budget, and the value of doing research before setting your prices.
Know your worth
One of the primary reasons why businesses charge less than what they’re worth is that they don’t realize what their worth is. Before setting your pricing, it is essential to determine your value. Your worth is determined by your skill, experience, knowledge, and the impact you make on your clients or customers. When you price yourself low, you’re undervaluing your work, and that can be demoralizing in the long run. You need to recognize that your skills are unique, and you have something special to offer.
Charge what you’re worth
Once you’ve determined your worth, it’s time to price your services or products. Charging what you’re worth requires that you believe in your value and your skills. One tip to help you price your services fairly is to calculate your hourly rate based on your workload, expenses, and desired profit margin. However, you must also consider the market rate or what your competitors are charging. Pricing too high will drive away potential clients, but pricing too low will lead to underpayment for your services.
Know what the other person wants
It’s not just your worth that matters; you must also understand what the other person wants. What are the client’s goals? What expectations do they have from your services or products? Understanding the client’s needs will help you provide a tailored solution that will exceed their expectations. When you tailor your services according to the client’s needs and expectations, you create a unique experience that’s worth paying for.
Know the other person’s budget
It’s also crucial to understand the other person’s budget. What is the maximum amount they’re willing to pay for your services? Knowing their budget will help you tailor your solutions within their financial means. It can also help you determine whether it’s worth pursuing a client or not. If a potential client’s budget doesn’t align with your pricing, it’s best to move on to another client who can afford your services.
Do research to know what’s fair
Your prices are not just about what you’re worth, but what the market is willing to pay. It’s essential to research the industry standards, market rates, and your competition’s pricing to set your prices fairly. You can also ask for feedback from clients regarding your services and pricing. This will help you make informed decisions about your pricing and services. It’s all about finding the balance between your worth, market rates, and the client’s budget.
Charging less is frustrating for you
Charging less than what you’re worth can be frustrating and demoralizing. It can lead to resentment towards your clients and an overall burnout of the profession. It’s essential to value your work and charge what it’s worth not just for yourself but for your clients as well. When you charge your worth, you’re providing a premium service that’s worth every penny.
Getting less than your worth is not fair to you or the other person
On the other hand, getting paid less than what you’re worth is not fair to you or the other person. This can result in a poor work ethic or a lack of motivation to provide quality services. It’s essential to communicate this with your clients and work towards a mutual agreement. If a client isn’t willing to pay what you’re worth, it’s best to walk away from the opportunity and seek clients who will value your work and pay fairly.
Knowing your worth in business is essential for pricing your services or products and gaining the right clients. Charging your worth requires that you are confident in your value, understand the client’s needs and budget, and research industry standards to set fair prices. Remember that charging less or getting paid less than what you’re worth is not only demoralizing, but it is not fair to both parties. Believe in your worth, value your work, and charge what it’s worth.