The Top Mistake That Service Providers Make
The number one mistake that most service providers make is undercharging. They typically do this because they think that they need “all this experience” with “all these clients” before they're worthy enough to actually charge what they’re worth.
But in reality, service providers who are just starting out really only need to work with maybe two or three clients pro bono before they start charging at least $1,000 for their services. There's truly NO reason why you should be working with a ton of people for free or for too cheap. As long as you’re committed to doing great work for your clients and you give them a great experience when they work with you, that’s all you need to charge at least $1,000 for what you do.
Another belief that new and even some existing service providers have about charging what they’re worth is — thinking that everyone on the market is “really cheap” and because of that, it’ll be impossible to charge a higher rate. They mistakenly assume that cheap people represent the entire market, when they’re really only a small fraction of the market.
There’s a totally different group of people who wouldn’t mind paying a premium rate — and who probably even prefer it (because they know “you get what you pay for”). These people are usually skeptical of cheap prices too because they associate price with the quality level of the services they’re looking for, which means to them, they view a higher price as higher quality services and they view a lower price as lower quality services. So if they see a really cheap service provider, and they know they want high quality services, they’ll be scared off and they’ll continue looking until they see a service provider who’s priced at a premium.
If you find that you’re only able to attract cheap clients, it's because of how you’re marketing your business. As the business owner, it’s up to you to learn how to market and position your business differently, to be able to attract the attention of the premium level clients, instead of the cheap clients.
You do this through:
The type of package you’re offering and the price of it
The way you show off your credibility and build trust online
How you market your business and the type of messaging you use
The client experience that you provide for the people who hire you
And, the way you handle your discovery calls
If you don’t know how to do these five things properly, you’ll be stuck undercharging and missing out on thousands of dollars, month after month!
But if you commit to learning how to do these five things, you’ll be able to build a full-time service-based business a LOT faster, and you're going to be able to build a business that could actually replace your nine to five income, even with a small audience online, because the best part about charging premium is that you only need two to three clients per month to say yes to working with you. And you can be well on your way to making $5,000 and even $10,000 a month selling your services. But it's just up to you to learn how to charge a premium!
