Too many times I run into business owners who do awesome work; however, their rates are extremely low. This is a mistake that a lot of business owners make for more than one reason. Here are a few: They are afraid that people won't be able to afford their services. They are afraid that their prices are too high. They have not done their research for that market. Or maybe they are trying to build up their clientele, so they just want to get the customer in the door. We as business owners have to know our worth. If you have a product or service that someone needs, they are going to pay for it. Small businesses and start-ups are more prone to making these mistakes.
Here are a few issues that you may run into when your prices are entirely too low.
1. It can become extremely difficult to maintain your overhead.
2. Sometimes customers have a hard time taking you seriously.
3. You have to charge enough to make a profit; otherwise, you just have an expensive hobby.
4. Your business will never grow if you don't have the revenue to assist in it's growth.
5. You will never be able to leave your full time job.
6. You will find yourself with more customers than you have time or money.
So the next time that you are pitching your product or service, whether it's $10.00 or $10,000.00, say it with confidence and know that your time is worth it. When you start taking yourself seriously, others will too. Know your worth and stop giving discounts!