How do you know how much you’re worth? It’s simple, right? You’re worth what your job pays you. If you’re like most people you have a job and that job has a set salary of some sort. You go to work and you get paid, it’s that simple. Your position pays “x” number of dollars per hour or per year. When you get to a higher level position you’ll make more money. That determines your worth. You’re comfortable with that process because that’s the way it’s been and that’s the way it will always be. Unless… you quit your job and start a business.
Then you have to ask, “What am I worth?
What you’re REALLY worth
When you start a business there are many factors to consider. What kind of company will you start? What value do you bring to the market? How will you generate sales for your business? Should you have an office or store, or should you work from home? Is an internet company better or will a local organization thrive in your area? Should you have a logo? If so, how should that logo look? What colors should you use? Do you need business cards, postcards, flyers, brochures? Who should create your website? What should a website cost… And on and on and on. There is a lot to consider. However, at the end of the day there are only two reasons you should start a business.
- To serve your customer.
- To make money.
Unless you have wealthy relatives who like to give you money, making money is really important. Its probably the most important part of running a business. If you don’t have money, then you don’t have a business.
If we know that income generation is important, why do we have such a hard time asking for money?
It comes down to your personal self-worth and the value of the product that you are delivering. When you’ve been accustomed to working in a traditional job you don’t have to ask others for money. You don’t have to ask for your paycheck, they just hand it to you. When starting a business, no one hands you money, you have to ask for it and that can be very difficult. It is especially hard when you don’t think that you are worth what you’re asking to be paid.
How do answer the question: What am I worth?
In five minutes I was able to locate two pairs of jeans on Amazon. The lowest price I found for a pair of denim jeans was $5.99. The highest price for a pair of denim jeans was $1,041. I don’t know about you, but the last time I spent over a thousand dollars on a pair of jeans, was never. I had no idea a person could even buy jeans for that price. Now, is there really that much difference in the overall products?
The inexpensive pair had very little style, I’d said for sure they used more actual material and the elastic waistband didn’t help the overall appeal of the product. The high-priced pair were certainly most stylish and I’m sure they’d have a better fit, but a $1,035 priced better fit, I’m sure not.
The big variance in these products was the designer. The high-priced pair were designer jeans that had a designer label. That in itself was the differentiator. When people buy the product or service that you sell they aren’t buying that product or service only, they are buying you. You are the differentiator. Your designer name is what makes you standout. You must believe that your name (your business) is worth what you’re asking. If you don’t believe in your price, no one else will.
Ask for what you’re worth
When you ask for what you’re worth, you’ll get what you deserve. Seeing your personal unique selling proposition is crucial to the success of your business and gives you the opportunity to thrive personally and professionally.
Pricing your product or service correctly shouldn’t be taken lightly. You should research your competitors and know what the market will bear for your product, but give deep consideration to your price. I often see large corporations riding the train to the bottom. They continually lower their prices until they have little or no profit margin. Cheapest isn’t always best.
Recently, my husband and I purchased a new mattress. As we shopped around I was shocked at some of the low, low prices and high, high prices for mattresses. They are all over the place. I saw mattresses for as low as $399. I don’t know about you, but I don’t want to buy a mattress that is only $399. I’m certain that it would be a horrible product, uncomfortable, and overall just junk. I have to say though, I never laid on one of these low priced mattresses. I didn’t look at who was manufacturing them or what they were made of. I simply took a look at the price and knew it wasn’t the mattress for me. It didn’t cost enough and therefore I made the assumption that it wasn’t worth buying. Consider that pricing your product or service at a very low price will often have the reverse effect.
You’re Worth It
Know your numbers. Figure out what you’d like to make, figure out what your product or service will sell for and find customers to buy those products. I realize this seems overly simplified, but really it is that basic. You have to sell your customers on why they should buy you! You are worth what you are selling yourself for. You are worth every penny that you ask for. And you will be paid what you demand. If you are uncomfortable asking for money, get over it. People want to pay you what they know you are worth! You simply have to ask.
Tell me in the comments below: Are you are getting paid what you’re worth?