August 19, 2019

“I should get paid what I’m worth.”

I hear this sentiment, and variations on it, from professional services providers whom I speak to about their pricing.

“What I’m worth” is dangerous language for a B2B services provider. “What I’m worth,” in isolation, can easily get turned into “what I need” or “what I deserve.” At an extreme, “what I’m worth” can justify taking advantage of people.

What you need or think you deserve, is irrelevant. What’s relevant is how clients value the solutions you provide to their problems.

Better pricing for your services starts with solutions, solutions rooted in the value clients derive from the work you do.

That value, by the way, is not just rational. The value customers perceive always involves emotions.

Recently I had a conversation with an entrepreneur whose business, while growing, has gnawing problems under the surface. Her problems have been causing her to lose focus and sleep.

“What would it mean,” I asked her, “to have these problems resolved? All this is obviously weighing on you.”

She looked up and away, into some place where she could see what her business—and her life—might look like with solutions to the problems she outlined. A wave of relief swept across her face.

“Wow, I’d be a lot less stressed. I wouldn’t feel bogged down anymore. I’d have the freedom to make this business a lot larger.”

I let that vision linger for a moment, then I asked, “what’s that worth to you?”

“Wow,” she said, “I can’t even imagine.”

That’s wasn’t quite true. As our conversation continued, she started formulating tangible answers to that question.

And that’s where my value is rooted. Not in what I need or what I think I’m worth.

“What I’m worth” has nothing to do it.

 

Photo by Radu Florin on Unsplash

©Ray Business Advisors, LLC and John Ray

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About me:  I’m enthusiastic about how changes in pricing strategy can significantly change profitability for a business and enhance life choices for business owners. I live this passion through Ray Business Advisors, my outside CFO and business advisory practice, in which my pricing is exclusively value-based, not hourly. I work with business owners on how they can change their pricing not just to increase their profits, but better serve the wants of their customers. Click here to learn more or call me at 404-287-2627.