4 Surprising Ways You May Be Undercharging For Your Expertise
Will they pay more?
Is this worth it?
What if they don’t like it when I charge more?
I have people tell me I’m too expensive at my current rates!?
Yep, the fears are all there. So how can you tell if you’re undercharging or not?
This list of 4 tips can help.
You’re undercharging (possibly A LOT) if…
1) Your expertise is all in your head
If you don’t have a system or some other packaged offering of your expertise, and you’re consulting or coaching on an hourly or monthly model, you’re almost certainly radically undercharging.
There is price resistance to how much people will pay for an hour or a month. But there is less price resistance, and people will pay more if you put your work into a system or packaged offering.
#Biztruth: people pay more for a system because they have an easier time understanding and justifying it.
2) If it’s written down at all, it’s in a book or low-end product
It’s GREAT to have a book that highlights your expertise. It acts as credibility-building and establishes you as a trusted authority. But if your expertise is only in a book, and not in a higher-ticket product or system, you’re not being paid what you’re worth.
I have people all the time who ask me “why would they pay me to coach them through a system when they can read the book for less?” Because transformation is different than information. And you already know this, because you wouldn’t be who you are if you’d only invested through books.
#BizTruth: People will pay you more for the same information when it comes with more access and transformation.
3) You know this stuff too well, it seems. Well…duh
When the transformation that you provide seems easy for you, even though you know it can create extraordinary results, you’re likely to undercharge for that. There’s a feeling of “doesn’t everyone know this?” or “can’t everyone do this?”
No. They can’t. But you can, and you can facilitate that in others. That’s a super-power.
I remember the first time someone said something to me on a group call like “Well, everyone knows you use this kind of ginseng for this kind of health issue.”
WHAT?!! I told her that I didn’t know that – nor did anyone else on the call. It was kinda funny to see the light bulb go off.
#BizTruth: Consider that what is easy and fun for you is what you should be paid the MOST for.
4) Your pricing strategy is wrong
Because there is a social norm about how much we’re willing to pay for an hour of time, when you offer your services in terms of ‘sessions’ or ‘monthly packages’ you are limiting what you can charge. Transformation is priceless, and the value that your clients receive will far exceed hundreds of dollars for each hour you spend, but you can’t price that way.
#BizTruth: You need to price for transformation, not time.