3 Rules to Consider When Determining Your Pricing
You have an amazing service to offer, and you know you bring a terrific level of value and expertise to your work. Yet you find yourself watering down your rate. It may even be considered a decent rate, but you know you are worth more and just can’t seem to say the real amount out loud. In your mind you hear yourself saying things like, the market will never support this, or who do I think I am? There are so many others who do a much better job. Ultimately, you stay stuck at your current rate level, and feel frustrated and discouraged. What do you do?
In this article, I offer 3 principles to consider when deciding your rate for your service.
Bob Proctor has come up with what he calls the Laws of Compensation, which are a terrific guide to determine your rate for your work. I know it has been life changing for me when I see my work through this lens.
I too struggled with wondering if I could really ask for what I knew I was worth. Then I questioned whether my work was really worth what I thought. I would say things to myself like, who do I think I am to believe I really make a difference with my work? Another thought I had (and this one was really loud) was, you can’t charge for spiritual work.
But then I heard Bob Proctor speak to this on one of my coaching calls with him, and it radically transformed the way I saw the financial transaction between my client and myself. He came up with 3 laws, or rules of thumb, on how to consider what your rates for your work should be. He calls them the Laws of Compensation.
Let me share those with you:
Law #1–You are paid according to the need for what you offer
Now this one can sometimes be a bit difficult to wrap your head around, believing that people need what you offer. Let’s go into this a bit deeper. Realize that you could not have a desire to deliver a service if there were not a need. Your desires don’t happen in a vacuum. You are actually picking up the echo of the prayers of those who can benefit from your services. So right away, know that there is a need.
Your work is to be able to articulate that need to your potential clients. You do this by paying super close attention to how they describe their pain and what their needs are. You are literally zipping yourself into their skin to see life through their lens in order to be able to really know their pain and see how your service will help them. So, in order to justify your rate here, you become super aware of the pain your potential client experiences, you are able to articulate it back to them in a way that they can see that you understand them and you know very specifically how your service can help them.
Law #2–You are paid according to your ability to perform your service
This refers to your expertise and your skills. Only you can determine how effective you are. There are some things that you can measure to determine your ability to deliver your service.
First, take stock of your initial training in your area of expertise and your continued commitment to your training. When I look at my own case, I see the amount of financial and time investments I have made in my own training for my area of expertise. I see how committed I am to bring my absolute cutting edge best to my clients and other people I serve. I continue in my training as well, knowing that I can only give what I have experienced and know for myself.
Then, look at the amount of experience you have. How many years have you been doing what you do? Again, I look at my own situation and see how I have been doing this work in some kind of manner for over two decades. I have also continued with my own training and growth in my ability for that period of time. All of those years of experience and ongoing training add up to terrific value.
Finally, look at the results your clients are achieving. What happens for people when they work with you? You want to make sure you track this for them and for yourself. As you do, you have hard evidence that you deliver on your promise that what you offer works in helping others. That evidence, in turn, helps you own your value and expertise, and you become that much more confident in making your offer.
You know the difference your work makes in the lives of the people you serve. You are doing them a disservice if you don’t offer it for what it is truly worth. I know the more I hear how much people have transformed their lives as a result of our work together, the more enthusiastically I offer my work to others. I want as many people as possible to benefit from this work as well.
Law #3–You are paid according to the difficulty there is in replacing you
People see the difference you make in their lives. They have come to trust and rely on you, which is such a sacred gift. As you focus on Law #2 and gain more clarity around Law #1, this third law takes care of itself. I am always honored when clients choose to continue to work with me multiple times over because it is a clear demonstration that their lives are getting better. When people’s lives change for the better and things keep getting better, they will want to keep doing what is causing the transformation.
Your work is to help your clients see this. So often people lose sight of where they were when they first got started with a process. Helping your clients get a sense of the before and after is a powerful way to help them ground their transformation and see that their work with you really is making a difference.
You know you have a tremendous amount of experience and expertise to offer, both of which are worth more than what you currently charge. Yet these voices in your mind keep rationalizing why you should water down your value. When these moments occur, review the Laws of Compensation and see where you land. They say that you are compensated based on the need for what you offer, your ability to expertly deliver on that need and the difficulty there is in replacing you. As you grow your expertise, you increase your ability to serve your client, making it difficult to replace you. As you do these things, you become invaluable to those you serve as you help them in the way that only you can.
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