How To Charge What You Are Worth

“If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur.” -Red Adair

There is a very good chance that you need to charge what you are worth. Most service business owners don’t, and that can be incredibly frustrating.

This may be good for a laugh – but it illustrates the point perfectly!

When the client says you can do it cheaper

Doing high-quality work and not getting paid what you think that work is worth is a formula for misery over the long term, especially when customers complain or grumble about your fees.

How can you change that?

The first step is realizing that it’s under your control.

To charge higher fees you have to be worth more. This means producing a consistently high level of work, a high level of customer service, and differentiating yourself from your competitors. 

You also have to be able to communicate your value to your customer more effectively!

Work Quality Checklist

Producing high quality work consistently is so important. 

Customers want to trust that the level of service they receive today will be consistent with the level of service they will receive the next time they hire you. 

Answer these questions for your business: 

  • Do you show up time – every time? 
  • Do your installers clean up after themselves every time?
  • Do your techs and installers look professional? 
  • How about your salespeople – are they friendly and knowledgeable? (not salesy) 
  • What does your website look like?  
  • Do you have FAQ’s (Frequently Asked Questions) on your website?
  • Are your customers clear about how you are different from your competitors?
  • Do you bill by the job? (Or are you still billing by the hour?)
  • Do you have a system in place to track customer satisfaction? (Follow up “Happiness calls”)
  • What do your trucks & vans look like? 
  • Does your brand match your mission & vision?
  • Is it consistent across all platforms?
  • How much do you invest in training for your staff annually?

Standing Out From The Crowd

Customer service is vital to a successful service business. If your customer service is lacking, your customers will go elsewhere. It’s as simple as that. If you want to charge a higher fee, great customer service is the baseline, but you also need to stand out from your competitors.

A common mistake I see a lot of service business owners make is that they try to find the “going rate” for their service and position themselves somewhere along that spectrum. To charge higher fees, you need to forget what everyone else is doing. 

There is no “going rate” if you effectively communicate your value and why you’re different from your competitors. When your business stands out, you no longer need to compete on price. 

All too often we provide excellent service but don’t say anything, therefore our customers don’t see the value in what we do.

Think about these questions:

  • Do you use specialized equipment in your work?
  • Do you belong to organizations that your competitors don’t?
  • Do you have specialized training?
  • Do you take specialized continuing education classes?
  • Do you have endorsements from others?
  • Do you serve a particular geographic area?
  • Do you offer additional services, such as pick up or delivery?

Remember, the goal is to change what you currently sell into something unique and valuable that customers will be willing to pay more for.

Another way to stand out is to become the authority in your space and as an expert that has extensive or unique knowledge of your industry.

How do you become an expert in your industry?  

You must establish authority and credibility so others will listen to you and follow you.  This can be accomplished by writing a blog, writing articles, authoring a book, public speaking, etc.  

When you can sell authority, you don’t have to work so hard to establish value.

Expert status isn’t something that is built overnight.  It takes time to move from a general business owner to an expert in your industry, but it is well worth the effort.

Remember, the goal is to change what you currently sell into something unique and valuable that customers will be willing to pay more for.

Another thing to keep in mind is that you may need to change who your customers are. If you find yourself attracting bargain shoppers and discount hunters you may have trouble raising your prices, and you may want to try attracting more affluent customers instead.

More affluent customers are more insulated from economic ups and downs and are less likely to be choosy with working with you or doing it themselves.

Another bonus of working with people that generally have more money is that those people likely have a network of people like themselves that they can refer you to. Once they know, like, and trust you, you can have a constant source of referrals to people that are happy paying for a high-quality service.

Referrals are your most important source of new business.

Charge what you are worth illustration

Why is this?  Referrals may not know, like, or trust you initially but they are predisposed to know, like, and trust you because they have been referred by someone who already knows, likes, and trusts you.  

This makes it easier to close a sale, and when the service is done well the referral is also more likely to refer you to other people.

Referrals are also generally more willing to pay higher fees.  

The referral is less likely to balk at your fees when they come from a customer who is already paying higher fees.  One of the best things your referral can say is, “she’s expensive, but she’s worth it.”

Referrals are great, and you should definitely focus your marketing efforts on them.

If you want to start charging what you’re worth, in my coaching program, we show our members how they can transform their businesses and start the process of standing out from their competitors. Many of our members have experienced tremendous increases in revenue from implementing one of these ideas. To find out more, all you have to do is click on the image below.

Book Your Free Profit Planning Discovery Session


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