The topic of money is something we don’t often talk about.
This was true for my client – Julie.
During one of our recent coaching sessions she mentioned that the only memory she had of her parents talking about money were remarks they made in passing. Comments such as: “it didn’t grow on trees”, “it was very hard to make” and “it’s almost impossible to earn a decent living”.
It’s important to realise that what we see, hear and experience in our childhood, particularly around money can make a significant impact on how money shows up (or doesn’t show up) for us in later years.
Unfortunately for my client, Julie, just like her parents, she too was struggling with money now as an adult. When working in an executive role for a consulting company, she never put herself forward for consideration to work on some of the larger consulting projects. She also found it extremely hard to approach her boss for a pay increase– even after all her amazing achievements for which she had received numerous awards.
Now, working as a specialist within her consulting practice the same pattern was occurring. She found it very difficult to ‘sell’ herself and her services to a prospect and then was significantly undervaluing her services and undercharging even though she continued to deliver results that outshone her clients’ expectations.
Perhaps just like my client, you too are failing to appreciate the value you offer your clients, which is being reflected in the fees you are charging?
You certainly aren’t alone.
In fact, while doing some background research for this article I came across a number of studies which showed some interesting results.
- An article [written by the Australian Council of Trade Unions (ACTU) in September 2010] stated that Australian women were earning 18% less than men, which had increased since the last financial year; and
- The Australian Institute of Management [September 2010] conducted a study involving 759 organisations that were comparing ‘like against like’ jobs. According to their survey results, men were paid 10.2 percent higher than their female counterparts.
Why is that? When looking at the amazing results they are achieving why is it that women – whether they’re running their own business or working for someone else, find it difficult to get paid what they’re worth.
Several year’s ago I was the co-host of the show – Career Success Radio. On one particular show I interviewed Kate Southam, a journalist from one of Australia’s leading online job boards – Career One. In her Ask Kate Column, she regularly received letters from women who were struggling to get promoted or receive a pay increase and were seeking her advice.
When Kate suggested they should put together their pitch (identifying what they had contributed to the company), approach their boss and request a promotion (or a pay rise) they were horrified. They felt that because the boss should have been aware of the work they were doing, it was unnecessary for them to “have to ask.”
In my work with women entrepreneurs, many struggle with charging what they’re worth; find it impossible to increase their fees; and continue to tolerate things in their business, including continuing to work with demanding clients – all impacting on the amount of money they were making (or not making) in their businesses.
If you can relate, here are four reasons why this may be occurring, along with steps you should take to reclaim your power with money and finally start to charge what you’re worth:
1. You don’t think you’re good enough
Constantly doubting you have the ability to support your clients, or comparing yourself to your competitors is a great way to deflate your self-esteem, which can negatively affect your ability to charge what you’re worth.
It’s important to identify the benefits you offer your clients and the successes they’re achieving through working with you and recognise that they are achieving these results BECAUSE of YOUR help and support.
If you don’t value your strengths, talents and the valuable work you’re doing then you’ll continue to find it difficult to start charging what you’re worth. And, the only person that has control over that is you.
Isn’t it time you start recognising and valuing what you have to offer?
2. You say “I’m not in it for the money – I just want to help people”
Just like trying to run your car on the smell of an oily rag is impossible, so is trying to run a successful business that’s not generating any income (or such a low income that you struggle to pay your bills).
If your goal is to run a successful business (and not just a hobby business) then take heed. Undercharging and undervaluing yourself will often lead to burnout due to working long hours because you can’t afford to hire a team and therefore have to do everything yourself.
And, if you’re exhausted and burned out, you’ll hardly be in a position to be at your best for your clients.
It’s time to reframe your thinking. Yes, you are in the business of being of service to and helping others, however, by increasing your fees you won’t have to work excessive hours. With the additional income, you can hire staff to support you, which means you have more time to be of service to your clients.
See the pattern here? Thinking “I’m not in it for the money” and not charging what you’re worth is stopping you from doing what you love to do, which is to be of service to as many people who desperately need your support.
You want to help as many people as you can – yes? You CAN – by charging what you’re worth.
3. You’re too embarrassed to put up your fees
If you’re too embarrassed to tell your clients that your fee is going up when renegotiating your programs/packages despite the results they are achieving, then this is an indication that you’re not valuing your skills and talents.
And, as I’ve mentioned already – if you don’t start to appreciate your strengths and expertise then it’s going to be extremely hard to charge what you’re worth.
Years ago, in my career consulting practice, I put in a proposal for some personal branding and ongoing coaching for an existing client who had her eyes set on a senior level role. She wanted my support over the next 12 months so she could put herself forward in the next round of internal promotions.
I hardly slept the night before the meeting, and remember feeling butterflies in my stomach as I was presenting my proposal to my client. After stating my price I was quite anxious to hear my client’s response; however she smiled and said ‘Really? That’s great – I would have paid double. Let’s lock it in!”
So you can see – it was only me that was concerned about price. She had set herself a goal, knew that I would help her achieve this because of the previous outcomes she had achieved through working with me, and therefore was willing to continue her investment. [Had I not doubted my ability and recognised the value I was offering, I would have been able to double my income. I certainly learned a valuable lesson.]
Stop undervaluing yourself; recognise the value you offer; and step forward in confidence when stating your fee. You’re worth it- aren’t you?!
4. You don’t want to hurt anyone’s feelings
Have you heard the saying that ‘Eighty percent of your income is being generated by twenty per cent of your client list’?
Working with challenging clients who constantly demand more time than agreed and who continually confront you about your costs – are definitely paying you far less than what you are worth.
Putting up with these clients because you don’t want to hurt their feelings will negatively impact your self-esteem and confidence and will continue to drain your energy. Energy that you should be investing in the clients who respect and appreciate you and are willing to invest in your services at a level that is paying you what you are worth.
Do you really want to continue working with these demanding clients? Stand in your power with money, set clear boundaries with them and stick to these boundaries. If they’re not willing to work on your terms, it’s time to let them go. Fast!
As you can see, the beliefs you have around money and your level of self-worth and self-esteem can drastically impact your level of income.
It’s in your hands! Isn’t it time to step forward confidently and charge what you’re worth?
Are you ready to break through unhelpful beliefs and behaviours that are stopping you from charging what you’re worth? You can!
Right here: Sacred Money Archetypes Coaching – What’s Your Sacred Money Archetype?
Here’s to your amazing breakthroughs, charging what you’re worth and GETTING IT!
Great information Annemarie. I will definitely use these tips in my business.
Thanks for stopping by Jaime. Great to hear you found these tips useful and will be implementing them in your business! Continued success and inspiration!!
Great to hear Jaime!
I really enjoyed this article…so important for us to understand the impact of our own mindset on how others perceive us. Thanks. Good stuff!
Thanks Denny – yes, mindset is key!
I was so surprised and happy when I finally raised my prices and not one, not ONE, prospective client even flinched when I gave them my price. It felt so good to finally get paid well for my work, and I found that I enjoyed my work so much more!
This is important information for all of us. Thank you for sharing.
You know Nancy – that’s so often the case. It’s not our clients that are concerned about price – it’s us! Clients are seeing the benefits they are achieving through investing in our services and therefore are happy to continue their investment. And, if some clients happen to cease their relationship – it’s probably a client that you were investing way too much time and energy and who was not as dedicated to the process – so not your ideal client. That’s generally the case.
Thanks so much for the reminder AnneMarie! That was once a huge stumbling block for me, and I imagine it’ll pop up again.
Lily
I think we can all relate to this Lily! It is great to check in and confirm that we are still valuing the impact and results we’re helping our clients achieve AND charging our worth for the value we deliver.
Annemarie, you really hit the nail on the head! You dealt with the root issues that hold us back in succeeding as an entrepreneur. Money belief is huge. Thank you for helping us face this issue honestly.
Thanks Ronke – I totally agree with you. Money belief is huge and is one of the main reasons that keeps people stuck. Change the beliefs – change the outcomes.
Hi Annemarie, Great article and it’s so important that we do charge what we are worth. A lot of times people forgot about how much they have actually invested in their own learning and development to get them where they are currently. Thanks for sharing your 4 strategies. Deb
So true Deb. Once people recognise how much they know, what they do, and what they bring to the table, they realise they’re well undervaluing and undercharging. Time to reverse that I say!
We’d be amazed at how insidious those little “money gremlins” in our heads are in making business decisions as well as personal ones. They seem so harmless, until we realize that they putting their little stamp of approval … or disapproval … over the most basic of decisions. Great article how to get beyond them and reverse their impact!
Absolutely Sharon! Time to get rid of those “money gremlins” once and for all!
This is such a great article. I see several areas that I need to address NOW before heading into working with my clients. Thanks for such an upfront approach to dealing with our mindset around money.
Thanks Carla – glad you were able to take away some points to implement in your business! To your success!
LOVE this article! One must be firm with their self-worth. This is actually a very common problem these days. Getting a grasp on it can mean the difference between having a successful or non-existent business!
You’re so right! Many businesses/solopreneurs continue to struggle because they’re not charging their worth! It’s difficult to build a successful profitable business if there’s not enough (or any) income coming through the door. Thanks Beau.
Hi Annemarie,
This is a wonderful conversation that should keep going, and going, and going some more! (saw your repost via Twitter) Looking back, I remember reassessing my fees at least twice a year. Like you, I might have had butterflies before proposing an increase, but butterflies notwithstanding, it had to be done! 🙂
One point you make is invaluable: Having a client who readily, eagerly agrees to a fee increase because they recognize the value in the results they’ve already received. On more than one occasion, this happened to me and it was a great confidence builder!
Because I charged wonderful prices (well, wonderful for me), I’ve even had friends — who were also consultants — ask me to help them figure out how to raise their rates (or set rates for new services).
Keep inspiring women to change their thinking about money, Annemarie!
Hi Annemarie,
This is a wonderful conversation that should keep going, and going, and going some more! (saw your repost via Twitter) Looking back, I remember reassessing my fees at least twice a year. Like you, I might have had butterflies before proposing an increase, but butterflies notwithstanding, it had to be done! 🙂
One point you make is invaluable: Having a client who readily, eagerly agrees to a fee increase because they recognize the value in the results they’ve already received. On more than one occasion, this happened to me and it was a great confidence builder!
Because I charged wonderful prices (well, wonderful for me), I’ve even had friends — who were also consultants — ask me to help them figure out how to raise their rates (or set rates for new services).
Keep inspiring women to change their thinking about money, Annemarie!
Thanks Vernessa, this is a topic I am very passionate about! Thanks for stopping by and sharing your comments. I’m thrilled to hear of the successes you’ve had. Yes, have a client that values your services (and so they should) is wonderful!
Blessings to you!
Annemarie I love this article! I have read some of these points before but repetition surely helps and I need to be more confident and charge what I/my jewelry is worth! Thanks so much I love reading your posts on twitter!
Many blessings to you!!
Hi Annemarie,
I really enjoyed your input in the January Jig and I love this article too. It’s taken me a long time to get comfortable with the money issue too. Sometimes the challenge I encounter is when other people in the same industry under-charge and competition being fierce that you start to question yourself whether your rates are high. But what I’ve realized is 1) people that can’t afford me, aren’t my target market and 2) I’ve added other services that set me apart so I’m worth what I’m asking for.
Thanks for this valuable information. Can’t wait to read more.
Jocelyn
Hi Jocelyn, I’m so glad you found the information helpful. You’re certainly not alone in working in an industry where other people are undercharging. It’s wonderful to hear that you have positioned yourself in a unique way that continues to distinguish your services from your competitors. Showcasing your clients successes, specifically in measurable terms is another thing that is so important, so that your prospects can see that they are investing in the results you offer them.
Something I just shared with my Gems (clients) in their weekly 6-figure Biz Breakthrough audio that I think you’ll find helpful too, is about the importance of our mindset (self belief/money mindset). We will constantly seek out the evidence that will prove our beliefs to be true. So if an entrepreneur has the belief that people just don’t see the value, or won’t pay because of other service providers offering services at a far lesser price – then guess what. They’re right. These are the prospects they will continue to attract as they are seeking out evidence to prove the belief is true. So it’s vital to change the belief (mindset). The magic that happens once they do – is incredible. Because they are now seeking out evidence of clients who love them, see the immense value being offered, and are ready to step forward and invest.
Here’s to creating empowering beliefs and money mindsets!!
Hello
Its a great article. .I really enjoy to read it. .Thanks for such an upfront approach to dealing with our mindset around money. .
Great information Annemarie. I will definitely use these tips in my business. I have read some of these points before but repetition surely helps !