This topic is near and dear to my heart.
When I was in acupuncture school there was only one class on practice management that also included elements of business. One! Our education was over 4 years long – year around – and yet one class was dedicated to building a practice.
Most acupuncturist coming out of the program were thrown out into the ‘real world’ with a deep knowledge of the medicine but absolutely no skills on how to build a business, network, market and keep/maintain a flow of happy patients.
It was disheartening to watch since I’d estimate that 95% had to start a practice from the ground up.
When I met Dr. Gabby Pelicci and chatted about her business which focuses on helping women in the wellness industry actually thrive in business – I thought YES! – what a needed service she provides.
I was excited to interview her for the LearnSavvy community on a topic that comes up a lot for women: Charging what your worth.
Watch the interview here!
Caveat – I’ve never liked the statement “Charging what your worth” because I feel it puts a dollar amount on the person herself rather than on the service or product she is providing. I find it difficult to use… but for sake of this conversation I’ll throw it out there for now. And swap it shortly for simply “charging more”.
Some of the Hangups Holding Women Back From Charging More.
Passion
“I love the work I do, I couldn’t possibly charge an exorbitant fee for it.”
Many of us get into the work we’re doing because we love what we do or what we produce however if you don’t charge for your services it truly is a hobby. You can love every aspect of your work and feel comfortable charging for it.
The Fall Back Plan
“I just need one more credential or certification THEN I’ll be able to charge more.”
Otherwise known as a persistent need to collect certifications and education to “justify” charging a higher fee.
This is a particularly rampant procrastination tool for many wellness people and coaches in other fields. If I also had a yoga certification or if only I studied with this well-known individual could I be comfortable charging more. More education will not magically give you the confidence to charge more. You will be right back in the same position – perhaps with more knowledge (and more debt) but no more willing to put a higher price on your offering.
Natural Tendency for Caregiving
“I love helping people. It’s my natural gift.”
This one you can read between the lines. I love helping people I really could just do it for free.
NO!
For many women in helping professions including life/business coaching they are drawn to these professions because they truly enjoy helping people. They probably do it naturally in their everyday life (for free). However as a ‘profession’, you are a professional and professionals charge for their services.
Do you think most lawyers dispense a ton of free advice. I know from my attorney friends that they are coached and mentored that giving free advice diminishes the years of education, hard work, and experience.
Several consultants, coaches, wellness people and lawyers do pro bono work to provide an outlet for the need to help others at a reduce/no charge. It’s a wonderful way to give back. Dedicate a set amount of time per month to do pro bono work.
Lack of Confidence
“I just couldn’t charge more.”
Really? Why not?
Time for some deep excavating. If confidence is what’s lacking, it’s a good time to do some inner work. You may want to work with a coach, counselor, or do some serious journaling to unearth what is holding you back. Confidence comes with practice as well so as you keep putting your rate, you will feel more and more confident about it.
Money Stories
“I don’t think my services are really worth that much.”
A lot of the hang ups that women experience with charging appropriately has to do with old, outdated stories from the past. Money stories can go all the way back to how you were raised and your parents views of money or past experiences with allowances, salary negotiations, and so on. Again this is a good time to explore your personal belief systems and the stories you tell yourself around money.
How do we change this?
First off let’s use “charging more” from this point forward. No doubt you’re not charging enough – especially if you’ve read this far.
Your Worth vs. Your Services
What you’re “worth” makes me think of the days of dowries and trading marriage vows for the family goats. Yikes. You are a priceless and amazing woman. So your “worth” really isn’t what’s on the market. However, your skills, services or products definitely have a price tag.
We are all tangled up with the work we do and often identify ourselves too closely with our passions. If someone rejects your service you take it personally. Someone looks at you sideways because you charge a larger fee than they’d like to pay and you second-guess your rates. No no no!
Taking YOU out of the equation can make it more palatable to start naming a dollar amount for the services or product you provide. You are you. The client is the client. And the service or product you provide is a third party to the table and simply an exchange.
Incremental Increases Makes It Easier
Going from charging $50 to $500 might feel inauthentic or outside your integrity zone. Although she notes this goes again what most people say, Gabby suggests that you begin to increase in smaller increments so that you can settle slowly into the new fee structures and embrace it more easily.
Charging What the Going Competitive Rate
One of the practical ways to begin determining the ‘going rate’ for your product or service is to look at your competitors. What are they typically charging? The competitors you’re looking at should also serve a similar ideal client (see next).
Charging What Your Ideal Client Would Expect to Pay
Consider your ideal clients. Are they new business owners with little to spare or people with million+ businesses? Are your clients low income single moms or the ‘ladies who lunch’ set? Each group will have a range that they are comfortable paying. For many people if you charge too little they will think you’re not qualified or that your product/service is sub par.
Consider a Scale
As Dr. Gabby reminded us … a lot of healthcare folks charge on a scale. I know when I was practicing I received anywhere from $30/session to $500. It was mostly dictated by insurance companies and the scale was set for me, but I know many acupuncturists and psychotherapists who offer a sliding scale for those paying cash. Keep in mind, anecdotal research has shown that most people will inevitably pay that medium amount.
Learn more about Dr. Gabby here!
Take Action:
1:
Write down your current rates for products and services. What feelings, thoughts and beliefs come immediately to mind?
2:
Look at your competitors and others in your market (or similar markets). Write down what they charge and rates for their products and services. When looking at those numbers, what thoughts and feelings come up?
3:
What changes can you make this week to increase the rates of your services and products (if you determine that you are under charging)? Will you commit to making this change?
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