One of the toughest questions beginning and experienced service providers wrestle with is "How much should I charge?"

The amount of money you charge--- and how you present this fee to your potential clients --- plays a big role in determining whether you make the sale and get the project.

Charge too little, and you diminish your prestige and importance in the eyes of your client. You also diminish the perceived value of your services and dramatically reduce your own earnings.

On the other hand, charging too much and you may price yourself out of the market losing out on jobs to other service providers who charge less.

Here are four important factors to consider when determining what to charge the client:

1.  Your status. Are you a beginner or an old pro? Are you well known in your field and highly recommended .... or are you still waiting to be discovered by the masses? Are you a novice, learning your craft as you go ---  are you really a master at what you do. Do you just think your good or do you have the client list, testimonials, referrals and tack record to back up the big fees you want to charge?

   Be careful about under pricing yourself. Beginners have a tendency to set their fees at the absolute bottom of the scale, reasoning that they do not have the experience or credentials to justify higher rates.

2. The going rate for your type of service. In some industries pricing is fairly standard in others there is not a standard pricing. Such service are in psychic consulting. The fees here are usually based on the expertise of the individual, client lists, recommendations, testimonials, as well as any extras given during the services such as tapings.

The variations in fees in many field is tremendous. An examples that was given to us would be landscaping & direct writing a sales letter. In landscaping some homeowners expect to pay $1,000 for landscaping, while others are willing to spend $10,000 or more.  In direct writing of sales letters the letters ranges from $100 to $20,000. 

No one expects to get it for free or should expect it for free, or around $200 if the price is higher, and yet some are unwilling to go above $20,000. The same rule applies to any consulting whether it is professional, business, psychic, feng shui, and coaching to name a few. Services in these areas are also just that business services offered to the public to assist them in their situation. You do not go to a doctor and say doctor, I am really sick I am expecting you to treat me for free or at more of less then their asking fee. The same applies to any business or professional service offered.

3. The competition. The third factor to consider in setting your fees is the competition in your local area. By setting a price lower then them you are pricing yourself too low, and undercutting your own expertise and qualifications. It is important to set your fees at the moderate rage.

4. Financial need. The fourth factor is your own financial needs --- how much you need the work and the income. In some situations when cash flow is slow you  may feel financial pressure to get the work. At other times you may not need the work.

If you got bucks in the bank or corporations backing you, begging you to make space for their projects, begging  you to take them on as clients or connect with you, then obviously you don't need the work. You will then brush off clients, or potential clientele if they don't meet what you may feel is your criteria now that you are established. But here is the problem with this. You receive a bad reputation, that may not seem important at the time, and with individuals feeling brushed off, ignored or not treated courteously or respectfully, you end up hurting no one but your own self, your business and the image you are trying portray as well as maintain in a professional setting. You end of making enemies, of individuals down the road you may have to work with at a later date in professional situations or settings. If you don't need the money don't brush the individual clientele or business off, recommend them to another associate in the same line of work.

If on the other hand, you are in need of the money, and you set your price to low you can be taken advantage of in pricing situations with them claiming it is too high.

Presentation of your fees to the potential client actually involves two separate issues: (1) presenting potential clients with a fee schedule or giving them some type of preliminary idea of your fee range and how you charge before quoting a specific price. It is important to have a fee schedule  and if you have a website a visible fee schedule for the client to see. When you give them options in fee ranges stating that these are guidelines to help various financial incomes shows the individual and potential client that you are clearly professional, and interested in their business. (2) quoting and presenting a fee for a specific job one you have discussed the specifications for the project with the prospective client.

WHAT TO DO WHEN A PROSPECTIVE CLIENTS SAYS "YOUR PRICE IS TOO HIGH" And BEING AN ESTABLISHED PROFESSIONAL THE OBVIOUS: WHAT TO LOOK FOR AND NOT TO LOOK FOR

The most common objection service sellers and consultants hear is "Your price is too high."

The wrong approach is to quote a fee of so much then your clients say's its too high, You scared of loosing the client immediately say one of two things. Either, Okay, I will do if for 1/2 the cost or I will cut it to such an amount. Or I am flexible tell me what your budget is. Then they tell you and you do it for that.

First and foremost, you didn't get the fee you wanted -- the fee you thought you deserved. Second, when you immediately offered to do it at a lower price, the prospective client objects to your initial fee. In turn they will conclude and quite rightly that you don't mean the price you are quoting and only is a starting point for them to work you down to even smaller fee.  You can always be bargained down, probably because you are desperate and need the work.

The idea is that the perspective client will try to get your services for as little as possible and they know your initial quote is meaningless and you can always be bargained down lower or to a less fee then you need to cover your costs.

The right approach is  to quote your fee for the prospective client. if the client says, that's too high, you say, I understand of course I can't do it as outlined or with the added specialties or complimentary things at that price, but if you tell me your budget, I'll tell you what I can do for you.  In this way you have the control and are working within your budget means or business costs incurred as well as earning a fee for your services provided

If a client wants it all, which you will find some will feel this way or try to pressure you into giving it to them at a very low price or almost for free, and you do, then they have the control and you will feel anger, resentment and loss of finances or your qualifications or expertise. In this case it is better to recommend them to someone else or let them know that unfortunately you can not give them the service they requested as the price they expect. let them know you are sorry, but you are a professional business service and under the circumstances you can not give it to them at that price, and that it may be better for them to look else where. 

Here is the pit fall in this situation. If you are asking a price for fees say for a business service you provide, charging a specific fee per client as a  that is part of a membership package that is  different, but you don't include services to accommodate various individuals, you are setting yourself up for a tremendous loss in revenue or in networking net worth. Or on the other hand if you offer specific membership and include a few minimal things in the package but you charge them additional fees for everything else at maybe a discounted rate of 10% as a member then others would pay, again you are setting yourself up in a bad situation. The idea is to offer different packages for individual clients. Not all one package you offer may fit the needs of the client. If a client has something you are offering in the package deal, substitute something else, if possible.

In this way you are establishing a good professional relationship with other associates and prospective clients.

By not doing this and setting a large fee or price with little or no benefit for the clientele themselves or an unwillingness on your part to substitute things in the package to accommodate the varieties of various clientele can give the public, your associates, and other professionals the idea and impression you are a hard ass, only out for the money. Such examples of package deals with little or no benefit for you can be found in many businesses that offer you a deal of a package that you have 2-3 of what they are offering. Instead of them substituting things in the package that they may normally offer as an added cost with a discount as a member, they say sorry, its my way or the highway.

Unfortunately this image can be very damaging showing an unwillingness to work with an individual clientele or business. The damaged image of a  professional can never be repaired from being poor professionalism or lack of professionalism when a prospective client that is buying a membership is willing to pay a membership fee but needs are totally different.  They have what is already offered in the package and already has paid for it through someone else. Their thoughts and feelings are why should I have to pay for this again just to be a member or have a membership. These individuals only offer high cost service for things you already have paid for and have, and do not offer any type of incentive to bring you into the group forcing you to again pay for things you already have and don't need just because they are ridged and unyielding in their business dealings. Many times they will brush you off, not return calls, or make excuses after excuses to cover up their lack of professionalism, business experience or of not wanting you connected to their business.

Individuals who are professionals will not play games, if they do not feel the connection is beneficial for either party, or that they do not have the services to exchange or substitute so you don't have to  spend your hard earned money on something you already have but don't need again, or still if  the path they are taking is different, they will immediately respond with a very respectful and courteous, response in some manner whether in an email, phone call, letter or memo. Professionals do not string you along, or brush you off, nor will they make excuses over and over. This is what separates those who are vintage experienced professionals and those who are not.

 Also be aware of their ads, if they are placing any to promote you, how big is the ad, is the ad all about you, or are you a small minuet spec in the full page ad that is really about them and their business.

Business promoting and consulting are about the promotion of the clientele and the individual business. The ad should be the other way around, giving high profile to the new client, member, or individual business you are promoting.

The best thing to do is look for individuals who are willing to work with you and offer specific things that work with your needs that is within their business services that they offer. If they are offering other things as a member at a discounted price and they refuse to work with you, substituting things they have or can include so you do not have to buy once again services or products you already have, you know darn well that their only interest is in power, money and control in forcing you to accept products or services that are included in their membership but not needed or that you already have in order to connect or join.

Being the best professional is what sells. The testimonials, recommendations, awards and clientele lists are also a strong indication of an individual who is a "professional" and acts like one making sure of clientele and business associates satisfaction. A professional will also have actual references of individuals with address, or phone numbers, or even  documentation of actual official letters or letter head from specific individuals.

Bernadette & Rose Ann teach networking tips, coaching, classes, lectures and workshops. If you are interesting in having a class, having us speak or do a workshop in the business area, please call Angelic Inspirations at (763) 535-7982.