Everyone that I help in private coaching initially has the same problem: they are unsure about how much to charge people for their goods and services. They feel bad charging much for their work and tend to be far too modest.
When I push them to charge for what they’re really worth, many people are not only very hesitant for the sake of not selling product, but also for what people will think of them.
“Will people resent me for charging that much? Won’t I get more sales on the product if I just charged less?
I assure them that no, it’s quite the opposite actually.
The more you charge for your products, the MORE people will respect you for it. Within reason of course. Not only that, in my experience when people start charging more, their sales actually steadily increase.
If you’re selling your products for cheap, people tend to view you and the product as such.
Undercharging for your products and services essentially tells the world that you’re not worth the time and effort. And you can probably find the same information for free somewhere else on the internet.
There’s something fundamental in the nature of humans that lends us to appreciating things that are more expensive, and perceiving them as “better”.
For example, remember the last time you went shopping for a category of item you didn’t know much about, such as a kitchen scale or another small appliance.
If you get presented with two options, a cheap one and a more expensive one, without more information, you’ll naturally assume that the more expensive one is of a much higher quality and will likely do a better job.
Another interesting observation in human behavior is that people tend to also view cheaper items as just cheap commodities, something to be abused and/or taken advantage of, especially in comparison to the “top-shelf” items. You’re much more likely to take better care of a blender you spent $500 on vs. that old little mixer you got at the thrift store for $10.
A few items that are commonly sold already have attributed perceived value. By that I mean that the marketplace has already determined the value of these items.
If I tried to sell a book for $100, even with great marketing, it’s just not going to fly.
Why? Because the value of a book is generally thought to be less than $30-40.
However, digital information products, coaching programs and counseling or other services have no established perceived value, so you have much more room for flexibility in this regard.
We know that there are therapists that charge only $50 an hour, while others charge $300 an hour. In most people’s minds, the cheap therapist is not as “valuable” as the expensive one, regardless if even their performances are equal.
It’s okay to sell a few items with established perceived value, but to make a living selling your own products you generally have to also sell other programs where YOU establish the value based on what you think you’re worth.
And let me tell you… it’s better to try to be perceived as “valuable” than “cheap.” People will respect you for it, and you’ll actually be able to afford to pay your bills so you can then give more right back to humanity.
People Don’t Value Free
The reality is that nobody really values something that’s free. I don’t mean that every exchange in life has to be based on money, but if people receive something that seems expendable and they paid nothing for, they don’t tend to value it very highly for themselves.
Often, the true cost of something is hidden. And when that something is offered for “free,” people don’t value it as much and tend to take advantage of it.
For example, in Canada where I am from, we have a huge problem with our Universal Health Care system.
Although a lot of people think it’s “free,” most people aren’t aware that it’s paid for through our high taxes.
Yet a lot of people think it’s free and try to use it as much as they can. That puts a tremendous strain on the system in Canada, which is now one of the least efficient of the entire Western world.
When something is free, it’s not only undervalued for its true costs but people will also take advantage of it and take more than they really need.
If you charge the TRUE cost of a product or service, you’ll attract the right clientele who is willing and able to pay for it.
When your products are cheap, you attract cheap people. When your products are a respectable price, you attract quality, respectable people.
I know it sounds like class warfare, but it’s true. It’s been my experience and many other entrepreneurs will certainly attest.
I get the most customer service from people who place the smallest orders, and the least customer services and the happiest customers from those who place the largest orders and buy the most expensive products.
I feel that some people mistakenly think that if you charge “more” (whatever that is that you feel that you want to, but won’t) for your services that you are limiting the amount of people that you can reach, or ultimately help, if that’s your aim.
Really, the most important thing in the world is you, and you need to take care of yourself first and foremost. How much can you give back to the world when you’re struggling to pay your rent on time and going to bed hungry at night?
By charging what you are truly worth, you not only are able to create the life you want and foot the bill, but this allows you more personal freedom and power to help others that much more.
When you are in a good space and have your own needs met, then you can share any abundance with everyone else and “over-deliver” on all fronts.
Sell From the Start
One of the worst mistakes someone can make in Internet Marketing or business in general is to not sell from the start.
Some people think they can start a list and give away a lot of free content to grow it. Then at some point, they will release a product and sell it to their list. This is a giant mistake!
When your list gets in the habit of getting everything for free from you, they might resent you when you try to sell them something. They will think, “This isn’t what I signed up for!”
It’s especially difficult to turn this type of relationship with your subscribers around.
The core of any business is ultimately to sell goods or services in exchange for currency, so it’s no surprise to you to see people selling things. But when somebody signs up to an email list, has been receiving free articles for months, and all of a sudden is being sold something, they tend to get defensive and resentful, if just subconsciously.
Life Is Expensive
Let’s face it: life is expensive.
Many people think that you get more respect if you live a life of poverty and try to help others at the expense of your own needs. Giving away all your free time, helping others financially at your own expense, giving the shirt off your back, etc.
In my experience, this doesn’t tend to be the case and I’ve actually found the opposite to be true. The more successful you are yourself the more quality customers you tend to attract to yourself again and again.
Don’t be a slave to poverty mentality! If you keep thinking that success has to be built from manipulation or that charging “more” is deceitful and people will resent you for it, that’s likely what you’ll experience and the people you’ll deal with.
But if you start realizing your own true value and put your own needs first and foremost, then you can start giving back to others fully and then receive back fully in return.
So take care of yourself and don’t feel bad for doing so! When all is said and done, the better off you are the better off everybody is around you too.