It is almost certain that you underestimate your value to other people. Virtually everyone does, even those who chargeextremely high fees or prices for what they deliver to others. Most of that comes from a very fundamental misunderstanding: value has nothing at all to do with what it takes to create the product or service. Nothing.
Think about that a bit.
If you take 2 minutes to create something or 2 years, it is completely immaterial to its value. It's value is determined by only one thing, and I'll tall you what that is in this e-mail. First, though, I'll tell you how this came up for me today.
My cousin is a fine artist. By that I mean both that she is a very good artist and that she paints fine art. Last year, she was "downsized" from a catalog company where she had worked in the marketing department, designing and laying out catalogs. During our conversations at that time, we talked about all that she could be and what she would do if she could. We talked about a bunch of stuff, and so as she left the seemingly secure world of being a corporate employee, she started painting again.
She is selling her paintings, too, and unlike most artists she isn't afraid of business and money. In fact, she gets it and is working on ways of creating revenue from her art.
Recently, she reminded me of her marketing background, and offered to take a look at my http://masteringyourlifenow.com/ web site and give me her marketing analysis. Of course, I took her up on it, and so she did. A few days later, we sat on the phone and discussed the page for a while. I made changes as a result of her insightful counsel. And it made a real positive difference in the way the page communicates.
She is good at that.
Today, we talked about how much she should charge for that service of hers. She is insightful, she listens, and her experience gives her a unique perspective that will benefit any seller smart enough to enlist her service. Even though she continues to focus on her painting, this is another area where she excells.
Anyway, she called me today to ask me what I think this service is worth. She was thinking in terms of dollars per hour. I did my best to break her of that thinking, and I did it for a couple of reasons:
- 1 - There is no leverage in hourly work. You can never free yourself from the bondage of time limitations, and there are only so many hours that you can bill to customers. Therefore, it is inherently limiting.
- 2 - People have a mindset about the value of an hour based on their personal experience that's completely irrelevant. In addition, the comparisons are often apples to oranges. How much someone makes per hour is too easy to compare to others -- and for the buyer to compare to himself.
So, don't do it. That's not the point. The real question is, "What's the value of what you do?" As a result of the answer to that question, you can set a fee or price for the service or product based on its value. Then do it.
The hard part is asking for it, but that's a topic for another time.
Oh, before I forget, what's that one thing that determines value? Simple: it's whatever the buyer is willing to pay.
If you grasp this one idea, you'll be ahead of at least 97% of the people on the planet.
How about it?
PS You can find way to capture ideas like this without spending the time necessary to separate the wheat from the chaff. Become a member of Mastering Life NOW! http://masteringyourlifenow.com/