Why can’t I justify my rates?

This week's question from my portal “The Neagle Code: Directions for Life” comes from Brandi T.

Neagle Code Question

Hi David,

I am a massage therapist and have a lot of guilt around asking for what I really want to charge clients. I was raised with the paradigm of: It is wrong to charge a man who is dying of thirst $100 for a glass of water and wrong to deny a starving man food (particularly if I have more than enough), so I’m having a hard time justifying selling a service that people of all income levels need, but which most people truly cannot afford. I know I’m not thinking about this accurately, but I’m still stuck in it. HELP!

Neagle Code Answer

Hi Brandi!

I know a lot of coaches and business consultants who struggle with this same concept.

First of all, I don’t quite think your comparison makes a whole lot of sense. Charging a dying man $100.00 for a glass of water doesn’t really compare with charging your fees.

Here’s the deal…it’s not your responsibility to save the world. If it were, you’d be the only massage therapist in the world.

The truth is that you’re looking at this all wrong.

The LAW states that if someone has a strong enough desire for something, the money MUST be there. What you’re talking about is no different.

And your responsibility is to yourself only (and any dependent children, of course).

Here’s how I suggest you look at your fees.

Your fees MUST be set on your personal financial goals AND the value of the service that you offer. The value of what you offer must exceed the fees that you’re charging.

The people who have the ability or willingness to pay you, WILL. And those that do not will find someone else to help them.

It’s a win-win situation. You get to work with the people who you really enjoy working with, and people who aren’t willing to pay your fees will pay someone else to work with them.

More life to all.

 

JustBelieve_Logo-01

PS: The Neagle Code: Directions for Life is a weekly no-cost program that is open to everyone! Each week, I'll select and personally respond to one question received via the above “The Neagle Code” page that I feel in my heart will help the most people. (You may choose to remain anonymous if you wish, with our full support.) It is my deep, heartfelt intention that ~ in answering your questions ~ I may provide you with the Universal Truths that in committed application, will set you free. Simply submit YOUR burning question at: www.DavidNeagle.com/ask-david to participate.

Can I invoice my friends at full rate?

This week's question from my portal “The Neagle Code: Directions
for Life”
comes from someone who wishes to remain anonymous
.

Neagle                                               Code Question

Hi David,

I'm so use to over servicing clients or giving my ideas away for free that it's ingrained subconsciously. My friends have no problem charging me for their services, how do I reverse my subconscious mindset of low fees, freebies in myself and that of my friends to charge what I am actually worth?

Thanks!!

Neagle                                               Code Answer


Great question.

Charging what you’re worth is simply a decision.

And the truth is, if you don’t find enough value in what you have to offer to charge for it, others won’t see the value either.

So you need to make the decision that no matter what, you will not give your advice, services or insight away for free.

If someone asks you for help, even if they are a friend, say to them, “I’d love to help. Let’s set up a time to talk about your goals and aspirations so that I can clearly recommend next steps for you.”

On that call, clearly re-state the purpose of the call, make sure you take control by asking questions, and make recommendations of which program or service will get them to their goals the quickest.

From now on, you will set your prices based on your financial goals rather than your emotions. And you will never make an offer to someone that is not in line with your financial goals.

You have to hold yourself to these agreements even if you feel it threatens your relationship with friends or clients.

By doing this you will begin to see that people WILL pay you what you believe you are worth.

You’re not reversing a subconscious pattern; you’re creating a new one.

Just Believe,®
Interesting Image

 

PS: The Neagle Code: Directions for Life is a weekly no-cost
program that is open to everyone! Each week, I'll select and personally respond to one question received via the above “The Neagle Code” page that I feel in my heart will help the most people. (You may choose to remain anonymous if you wish, with our full support.) It is my deep, heartfelt intention that ~ in answering your questions ~ I may provide you with the Universal Truths that in committed application, will set you free. Simply submit YOUR burning question at: www.DavidNeagle.com/ask-david to participate.

What do I charge my very first client?

This week's question from my portal “The Neagle Code: Directions for Life” comes from an individual who wishes to remain anonymous.

Question:

After attending your event, I've changed drastically, both personally and in my motivation to change the world. I have an opportunity to start working with a client, but this will be the first time I've worked in this capacity as my own employer (aka setting my own fees). Is it out of integrity to charge this person, given that I've never created my own exclusive program before, or is it coming from lack NOT to charge this person for my services? Thank you so much!

Answer:

Hi and thanks for your question!

If you made the decision not to charge for your services, I don't necessarily believe that the decision would be coming from a place of lack; however, I think it would be coming from a place of fear.

Be honest.

Do you have a fear that this first client will think you're too expensive if you charge?

Are you worried that you're not “good enough” to charge?

Are you afraid of the sales conversation?

Are you concerned that your first prospect will think you're “salesy” if you collect money for your services?

I teach all my coaching students that pricing should not be based on logistics; it should be based on the value of the outcome your client is to receive.

So ask yourself, how will my prospects life be changed after working with me? What is the value of that?

I see many people just entering the industry giving their services away for free only because of some inner fear.

There are several problems with this.

1) People value things they have to invest in and are more motivated and willing to do what needs to be done to experience change. If they haven't paid for your services there is a high possibility this person will quit, not get their results, and then blame you.

2) When a client doesn't pay for your services, there is not an equal exchange of energy, therefore, what tends to happen is you will spend a lot of time with this client and then end up resenting them because you are not being paid even though you did not ask to be paid.

3) You're looking to find validation and appreciation instead of to provide a service. This is a dangerous pattern, and it makes it very difficult to begin charging.

My recommendation would be for you to determine the value of your service (based on the outcome your client will receive), price it as such, and be confident in your sales conversation. (My CompassionateConversion.com home study is a great tool to help you do so.)

Always remember: Transformation begins with the commitment, and people commit financially.

“Just Believe”,®

PS: The Neagle Code: DIRECTIONS for LIFE is a weekly no-cost program that is open to everyone! Each week, I'll select and personally respond to one question received via the above “The Neagle Code” page that I feel in my heart will help the most people. (You may choose to remain anonymous if you wish, with our full support.) It is my deep, heartfelt intention that ~ in answering your questions ~ I may provide you with the Universal Truths that in committed application, will set you free. Simply submit YOUR burning question at: www.TheNeagleCode.com to participate.

PPS: May I ask you to help me spread the word about this program? Is there someone you care for who is stuck, or struggling, or lost, or unhappy? Because if so, I would very much like to help. No matter their question, no matter their predicament, no matter if they've never heard of me before … if they would like to ask for help via www.TheNeagleCode.com, my Team and I will do our very best to provide that help.

 

But what if my rates exceed their ability to pay?

This week's question from my portal “The Neagle Code: Directions for Life” comes from Eric Johnson. You can find him on the web at http://www.divorceutah.com/

Question:

Hi David,
Assuming it is wrong to charge a man dying of thirst $100 for a glass of water and wrong to deny a starving man food, particularly if I have more than enough, how do I justify selling a service that people of all income levels need, but which most people truly cannot afford at the rates I charge because the rates clearly exceed the average person's ability to pay? I am a divorce attorney.

Answer:

Hi Eric!

I know a lot of coaches and business consultants that struggle with this same concept.

First of all, I don't quite think your comparison makes a whole lot of sense. Charging a dying man $100.00 for a glass of water doesn't really compare with charging attorney's fees.

Here's the deal…it's not your responsibility to save the world. If it were, you'd be the only divorce attorney in the world.

The truth is that you're looking at this all wrong.

The LAW states that if someone has a strong enough desire for something, the money MUST be there. What you're talking about is no different.

And your responsibility is to yourself only (and any dependent children of course).

Here's how I suggest you look at your fees.

Your fees MUST be set on your personal financial goals AND the value of the service that you offer. The value of what you offer must exceed the fees that you're charging.

The people who have the ability or willingness to pay you, WILL. And those that do not will find someone else to help them.

It's a win-win situation. You get to work with the people who you really enjoy working with, and people who aren't willing to pay your fees will pay someone else to work with them.

More life to all.

“Just Believe”,®

P.S: The Neagle Code: DIRECTIONS for LIFE is a weekly no-cost program that is open to everyone! Each week, I'll select and personally respond to one question received via the above “The Neagle Code” page that I feel in my heart will help the most people. (You may choose to remain anonymous if you wish, with our full support.) It is my deep, heartfelt intention that ~ in answering your questions ~ I may provide you with the Universal Truths that in committed application, will set you free. Simply submit YOUR burning question at: www.TheNeagleCode.com to participate.

P.P.S.: May I ask you to help me spread the word about this program? Is there someone you care for who is stuck, or struggling, or lost, or unhappy? Because if so, I would very much like to help. No matter their question, no matter their predicament, no matter if they've never heard of me before … if they would like to ask for help via www.TheNeagleCode.com, my Team and I will do our very best to provide that help.