Stop overworking and undercharging
5 Tips to Break the Cycle of Overworking and Undercharging
Time, energy, and money. These three resources influence everything we do (or don’t do) on a daily basis. They impact our lives and they are definitely tangled. I guess that’s why I hate to waste any of them (especially time). If you think about it, how you choose to use, guard, and maximise these resources it directly affects your success in your business and your personal life. For instance, if you aren’t using your time as efficiently as you could be, you’re probably working too hard (using too much energy), working on the wrong things (wasting energy), or working too little (not maximizing or capitalising on your energy). Each one of these scenarios leads to under-earning. This, in turn, leads you to feel like you need to work harder and longer. The result is a vicious cycle of over-working for way too little money and way too little satisfaction.
Unfortunately, I see many entrepreneurs working way too hard for way too little money quite frequently. Many times it’s because they don’t have systems in place that would save or maximize their time, money, and energy.
However, one of the costliest mistakes I see is undercharging. When you undercharge for your services, you are, in essence, choosing to work harder and longer for too little money. You are choosing to waste your time, energy, and money.
Here are my top 5 tips to break the cycle of undercharging, under-earning, and overworking:
1. Do the math.
Sit down and figure out how much income you need and want to bring in on a yearly, monthly, weekly, and hourly basis. Be sure to take into account how much time off you’d like to enjoy each year and how many hours you want to work per month, per week, or per day. You have to be clear about what you need to make in order to be profitable and live the lifestyle you want. Having a clear goal is the first step in achieving success.
2. Charge based on the value you provide.
Charging by the hour is subjective and doesn’t really make sense. Think about it. Why would anyone pay for someone else’s time? People hire you because you have the skill and expertise to help them solve their most pressing problems and fulfil their needs. What is it worth to them to have their needs/wants to be met? What is the cost of them continuing on without solving their problem? Provide great value to your clients and charge accordingly.
3. Package your services
For consistent income and consistent results. When you charge by the hour, by the session, you are setting yourself up for inconsistent income and your clients up for inconsistent results. I know some people will argue that they provide a service that can’t be packaged, I believe you can, for example, let’s say you are a hairstylist, you could create a yearly package that includes haircuts every six weeks, a weekly deep conditioning, and a holiday/ big event up-do. Your client would have healthier, better-looking hair and you would have a consistent income. Packages maximise the time, money, and energy for you and your client.
4. Realise you are not Tesco.
You are not trying to impress people with how cheap your prices are. Don’t market to bargain hunters. Market to your ideal clients who expect the best and are willing to pay for it. The most important thing to remember is that you don’t “discount” your services without good cause. Simply thinking your client can’t afford your services is not a good reason.
5. Own your value.
Stand firm in the value that you provide and what you’re worth. No one can ever pay you less than what YOU THINK you deserve.
Think about it …
If you are tired of being overworked and you need help with breaking the Cycle of Overworking and Undercharging contact me for free no-obligation consultation at info@mgcoach.co.uk
