Are You Charging What You’re Worth

May 3rd, 2019

loaves of bread priced up ready to sellAre You Charging What You’re Really Worth?

From my experience most people aren’t. I’m constantly told its hard to raise prices but that’s usually from people who don’t value their own expertise. Nothing is easy in business but this is crucial if your business is to survive.

We all pay what the plumber asks for because he’s the expert. He knows what to do to fix the problem and so we pay what he asks. We might moan about the price but we’re so pleased the heating is working again that we pay.

I’m sure you’ve heard the story about the engineer who charged £10,000 for 10 minutes work.

The short story version is….

The engineer was called in to solve a problem with a critical machine that had broken down. He looked at it and hit it with a hammer and its started working again.

His invoice said:
£50 for using a hammer
£9950 for knowing where to hit the machine

Similar stories have been written related to every industry. Alongside advice to put a zero on the end of your quote!

Not convinced yet?

Consider this:
A bar of iron costs £5.
Make it into horseshoes its worth is £12
Make it into needles and its worth is now £3500
But if you make it into balance springs for watches, its worth soars to £300,000.

Your own value is set by what you are able to make of yourself. But you must clearly understand the value of the problem you solve for your customer.

Now, is it time to review your prices?

coachSME88

Shirley Mansfield is a highly experienced business coach and Master Problem Solver. With over 25 years’ experience, she founded CoachSME in 2011 to work with business owners to maximise growth, and she is still trying to reduce the 14 handicap! Keep up to date by following me on Twitter @coachsme