Charge what you're worth?! Hmm...

Business Tao with George Kao

Have you heard that you should “claim / stand up for your value” ?

Let’s look more deeply at this…

How much is your value?

How much are you worth?

$25/hour? $150/hour? $500/hour? $10,000/hour?

If other people charge more, are they worth more?

Words matter: they shape how we see ourselves and others. Connecting our fees to our “worth” is an unhealthy comparison.

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Watch the video here:

https://www.facebook.com/watch/?v=1964471757017263

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Are you worth less than someone who charges more?

Truth: You are worth infinity.You are a precious human being whose odds of being born are 1 in 400 trillion!

“Charge what you’re worth” was perhaps started by some high-priced coach who needed to justify how much they’re charging you.

I have seen many people raise their prices (because they’re “worth” more!)… and then what happened? They saw their business decline.

So let’s stop using the word “worth” in connection to our service fees.

Consider this truer, more practical idea:

“Charge based on the market rate.”

It makes sense to set your price based on what your clients are expecting and seeing in the marketplace.

Look at your niche mates and what they’re charging. Then look at your own needs, and your reputation in the marketplace. Price your services accordingly.

Then, based on the market’s response, you might need to change your pricing.

There is such a thing as perceived value. If you have a more premium branding and copywriting, people are usually willing to pay more.

However, before we all rush to rebrand ourselves as premium / luxury, we need to consider whether our branding is authentic to how we wish to show up in the world?

For example I prefer to be minimalistic and “among the people”… a “guide on the side” rather than a “sage on the stage.” Luxury branding is not for me. However, for others it may feel authentic.

Let’s look at another common idea:

“Charge what the market will bear.”

Economics teaches us to charge the maximum amount that our clients will tolerate…

Let’s flip this around and apply The Golden Rule — You are my market, my potential clients. How would you feel if I charged you the greatest amount you could bear?

This is what some high-price coaches and programs do. They charge as much as they can get away with.

Their justification: “If you pay more, you’ll take it more seriously and get more results.” Really? Or are they using it to justify their own self-enrichment? The truth is that most people who pay for high-priced programs don’t get the results promised. I’ve written about this before: Beware of expensive business trainings. (Although the opposite can also be true: charging too low can make it appear that you’re desperate, unless you explain why your rates are much lower than others in your industry.)

I used to do all this. I used to teach it, too. I’ve also worked with many colleagues who operated from this mindset.

This is how business is supposed to work, right? Everyone is supposed to be out for themselves. The...
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