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People ask me, 'What should I charge?'

I say, 'Ask your clients.'

If they are respectable professionals you want as clients, they will be honest with you and give you a fair price based on their experience, their need, and their ability to pay. Richard has been charging such low prices compared to the competition that a client warned him, 'If you don't raise your rates, my VP won't even look at you.' When the invoices come in and the VP sees one company charging $185

People ask me, “What should I charge?”

I say, “Ask your clients.”

If they are respectable professionals you want as clients, they will be honest with you and give you a fair price based on their experience, their need, and their prowess to pay. They will not try to undercut you.

And if you are a true professional, you will put them a fair price and not try to overcharge them. You will not undercut yourself, either. You will base your price on two things: your value to their business, and the client’s value to your own company. Your fee should many times be based on the criterion of a good relationship. If it threatens the relationship, is it worth it?

You cannot base your price on your playfellow policy or an centennial raise, or what you’re worth to your most lucrative corporate clients. You must base your price on the relationship with this one specific patron and all your clients.

Shortly after that I opened my business, I received a call from a paid bank. They were experiencing difficulties with a team who managed world trading, and they needed someone to teach them a thing or two in reverse communications. I was very excited well-nigh this opportunity. I shook their hands vigorously and we retired into a little room, where we discussed their needs and they told me the kind of written proposal they were looking for.

I listened diligently as these two women talked. I couldn’t wait to sink my teeth into it. I proceeded to tell them how I would alikeness the project and then—poor naïve little me—I lowered my voice and near whispered:

“I should tell you, though, that I’m not cheap. I thrill $325 a day.”

The two of them looked at each other and giggled.

“Did I say something funny?”

“When you submit your proposal, you had rare influence us twice that, or the Manager won’t look at it.”

I stared at them, unclogged my throat, and replied, “Certainly.”

I “certainly” learned a lesson from that encounter. You don’t sensation a permitted bank the same fee you press charges a non-profit organization. I also, unwittingly, had been given an opportunity to grow my business. When you meet a new patron you have nothing to lose. Use it to take risks with your fees. Let them teach you what the going rate is, what they expect to pay. You might be pleasantly surprised.

Let clients raise your rates for you

If you provide superior service and maintain rich relationships with your clients, and help them succeed, a magical thing will happen. Your clients will raise your fees for you. You won’t have to do a thing.

It takes time, but consistency and reliability are rare and valuable. If you continue to rise to the occasion when your clients need you, they will “tip” you the way diners tip servers after all they have shift into sufficiently sloshed to feel very generous. “Here! Take accessory three thousand dollars, just for personality so nice!” Well, not exactly that way. Here’s what I mean. They will find ways to extend your contract. They will start petition why you shoot down less than the others, or why the others job of work so much. They will refer you to other clients. They will give you different types of projects where you can be more creative just about your fees.

This has happened to me a half-dozen times at least. People who enjoy working with you, and who take charge of your service and your commitment, will do you important favours. I was discussing this phenomenon recently with a friend who provides production services for TV and film on North America, often for large movie-makers and other production companies. Richard has been charge such low prices compared to the competition that a subject warned him, “If you don’t raise your rates, my VP won’t even look at you.” When the invoices come in and the VP sees one bunkmate surcharge $185 per hour and Richard’s stable infliction $45 per hour, the VP will get nervous within call the gap and see Richard’s facility as far at the nadir standard. The vassal continued, “Richard, you’ve got to make it look like you’re in the same game.”

When a subject tells you something like this, I have one word for you.

OBEY.

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