Ex-lawyer turned relationship coach

Are You Charging Enough Money?

Why does one bottle of fermented grape juice cost $100 and another $5?

The price has nothing to do with how long it took to harvest the grapes, how many grapes are in the bottle, or even how far the drink travelled to get to you.

So what do people care about when they buy a bottle of wine?

Pricing and reputation.

You could make the best bordeaux in the world, slap a $1 price tag on it and the silky red nectar would only be drunk by winos and penny pinchers.

People expect expensive wines to taste better. And perhaps by a stroke of luck, shelling out more money for a bottle actually positively influences our taste buds.

I wish I could tell you your clients hire you in the same way people buy wine. But it depends on the person.

When people call an Uber, they don’t care who drives them, as long as they get from A to B. And if you’re as replaceable as the cabdriver, raising your rates is like handing over your clients to your competitors—career suicide.

Only once you’re an expert do people start caring about you, because now you’re offering more value than Mom and Pop from around the block. Suddenly your worth isn’t as easy to measure and you can decide your own prices.

So what are you worth?

For starters, more than what the job costs. Unless working for Ebenezer Scrooge sounds like fun, you don’t want to be a dollar stretcher. Which includes working for a dollar less than the competition.

When pinning down your price, you want to answer three questions:

One, do you do something no one else does?
Two, are you one of few?
Three, do you do more than meet client expectations?

If you can answer all three questions with a thundering “Yes!” then you’re probably not charging enough money.

P.S. Asking more money is not just about filling your wallet. It’s about being taken more seriously so you can better serve your clients (or boss).

By Jeroen Elsing
Ex-lawyer turned relationship coach