We have been in business for a year and a half now!! Woohoo!
And it has been a learning curve to say the least. I have been testing the waters + gaining knowledge, left and right! With that, I have been taking away some life lessons that directly relate to my business! I experienced a recent lesson that I wanted to share and it can be applied to all types of industries.
The Story: I met with a potential client the other day and I was giving him the rundown of what I do and how my pricing is based. Now, I have known this person for a long time so I was trying to give them a good deal and explain to them that I am flexible according to their budget because I know how it is being a new business and all. Once I finished my spiel, he looked at me and said, "Hannah, you need to be firm with your pricing and your terms. You can't undersell yourself because you are good at what you do and you have a lot of knowledge in this field." When he said that, It was like deja vu because I have heard that from other people as well including other business owners, social media/marketing gurus and family members.
After discussing with colleagues and loved ones, I recently upped my prices over the last few months to match the amount of work I do and the time it takes every day - in order to minimize burnout. This increase scared me in a way because I know a lot of businesses in my area can't afford a huge monthly retainer and I don't want to scare them away. But I needed to show my worth and also make sure I was gaining valuable, long-term customers.
So, this is what I want you to assess when deciding to increase your prices and put solid terms on your business model:
1) How long have you been in business?
2) What is your success rate?
3) Does your current price match with the amount of work you are putting in?
4) Are you making enough to live comfortably?
5) Are your current terms being closely followed by your clients?
6) Are your terms hurting more than helping your business?
7) Can you alter your terms to make both parties involved more successful/happy?
8) Will your business terms produce long-term clients?
Once you answer those questions, you will have a better understanding of your business pricing and agreement terms. Ultimately, the lesson here is to make sure you don't sell yourself short. You have a service, you are good at what you do, you have a few steady clients and have been in business for over a year so you deserve to call the shots. Stop second guessing yourself, start being firmer and put yourself first, for once - that is something that can be taken away not only for business but for life!
Do you agree? Leave your comments below!
-The Blonde Boss xo