LESSON #4 You Should Charge More (Or Nothing At All)

Written By  Oudney Patsika

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Some of my worst customers pay the least. They come to my work requiring a service, but are not willing to pay top dollar my services. It comes down to expectations – they have paid me almost nothing and they feel entitled to get as much of our time/ resources from me and my service as they possibly can. When I charge and set a price, I hate it when people try to negotiate downward by as much as half. These days when someone attempts to negotiate, I simply say 'No! Go and find another service provider!' I have come to realise that most of my clients who over negotiate end up being a pain to me. So to wade off problematic clients - I have learn to say 'No!'

Negotiation is fine when we are talking about a few thousand dollars, but when I’m 15 designs deep in a design string for a product that costs $20 – and I have accepted to do that job, then I have got a problem. Create value for you work and services and if they are not able or willing to pay top dollar for your services then 'Let them go.'

LESSON #4 You Should Charge More (Or Nothing At All)

Look, there are plenty of customers that have spent $100 or less with me that are awesome. Not all low paying clients are difficult to work with. Yet, Inevitably, the customers that take up a disproportionate amount of my time and provide the lowest margins are almost ALWAYS from this group  of low paying or non-paying customers.

I’m not writing this to be an ungrateful whiner. Instead, I’m hoping this will encourage you to test your pricing and challenge your assumptions about what you think might be the best approach to your business. I want ot you know that the greatest challenge any new business person faces at most has to do with the problem with charging more (or creating a product that is worth more.) This tends to be a trap many new entrepreneurs fall into… They don’t think they have the skills or experience to create (and charge for) a premium product or service, but they need to make money and are not comfortable giving it away for free either. They end up offering a low-mid range product/service (out of hundreds/thousands) that makes it very hard to differentiate themselves and they are not appealing to the right audience.

AS A NEW BUSINESS PERSON OR ENTREPRENEUR NEVER SHORTCHANGE YOURSELF AND YOUR BUSINESS. True legends charger top dollar for their services and are not afraid to say NO.

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