Why does a pair of Levi’s cost $40 while a pair of True Religion jeans cost $120?
Is the True Religion really worth 3X as much? I don’t think so. It’s all about how the consumer or client in our case perceives the value of the product. This article over on the Creative Live Blog talks about why freelancers fail to charge what they are worth.
First, it’s important to note that there’s a big difference between “rates that keep you afloat” and “rates that make you real money.” Photographer Sue Bryce refers to the former as the “survival rate.” This is the amount of money that’s required to keep the lights on, but it doesn’t actually help you get ahead.
The main reason creative entrepreneurs end up charging too little “is because they confuse fees or services with their personal value/worth,” says Ilise Benun, founder of Marketing-Mentor.com.
“The two have nothing to do with each other. If you can see that, the value of your services has more to do with what the client will get out of what you have to do for them, then you can charge more. Its not about YOU. Its about the value to them.”
Additionally, says Ilise, conversations about price make most people uncomfortable.
They just don’t like to talk about it, so often, they don’t. They pick rates that they think people will pay, and hope that that will make the negotiation process easier.
“People think broaching the topic of money will make the client run away.” But, she says, that’s actually not true. In fact, talking about money — and charging what your work is actually worth — will make client negotiation and relationships better.
Remember that your client is looking to you to lead the conversation, not the other way around. They are coming to you for the service — a service they want — and it’s your job to let them know that they are in good hands and that you are worth whatever it is you’re asking them to pay.
So how should you approach this subject if you don’t like talking about money and you don’t think you’re worth it? Professional wedding photographer Bambi Cantrell talks about what photographers should do about this and how you will learn to appreciate yourself enough to charge what you’re really worth.
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To read more see the original article on the Creative Live Blog
Source: Creative Live
