Why ‘charge what you’re worth’ is THE worst business advice
I have yet to meet the first service provider who doesn't have to constantly fight the urge to overdeliver and undercharge. When clients start working with me, one of their goals is often phrased along the lines of 'starting to charge what they're worth'.
That goal never ever makes it to our final list of goals. I'll explain why.
Let me make one thing clear: I am all about teaching as many heart centered service providers as possible how to stop underearning.
It breaks my heart to see so many big hearted, ambitious women burn out in this field, because what they receive is not aligned with how much they give. And money isn't everything, but it plays an important role in that equation.
But charging what you're worth is not the way to go.
First of all: what does that even mean? Does everyone in this world have a specific value? And can that value be expressed in an hourly rate or the price of a VIP package? And if so: how do you decide what that value is? Or is there a committee for that?
The price your customers pay has nothing to do with your worth.
Because you ar invaluable. Just like everyone on this planet is.
I know you know this. On some level. But I need you to know this on a very conscious level. Otherwise, the whole business part of being an entrepreneur becomes deeply personal.
- If people ask for a discount or say they can't afford to work with you right now, it will feel like they are doubting your worth.
- If people are dissatisfied and ask for a refund, it will feel like you as a person have failed.
- And what about if you want to charge a lower than average price? Because you are running a pilot, or because that is what feels right in the moment? That would mean that you would automatically value yourself lower while running that program.
Never confuse your services and their perceived value with your value as a person.
In order to be confident about your pricing, have an abundance mindset when people decide not to work with you and do an honest evaluation if people are dissatisfied, you need to be objective about your services and the value of the transformation you provide. That's not going to work if you tie your self worth to their value.
Then what do you charge?
Wouldn't it be nice if there was some kind of formula to decide on exactly the right price for your services? Something along the lines of the square root of years of training + years of experience x duration of the program x 1000$?
I am sorry to disappoint you: there's no such thing. Pricing depends on many different factors, one of the most important ones being whether this price feels in alignment for you.
As for the urge to undercharge and overdeliver: you know that's just your ego (fear) trying to protect you from rejection, right? And that it doesn't work...right?
Let me tell you something to make you feel better: price really isn't that important. Every price point will attract customers as long as your services have excellent and just the right value.
And if you need a little help to get your undercharging overdelivering ego under control: you know where to find me!