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Old 24th June 2010, 11:59 AM   #1
David Jackson
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Exclamation How Much Value Do You Place On Your Time And Talent?

I'm a member of several small business forums, and it never ceases to amaze me how little value some people place on their time and talent. I constantly see writers willing to write articles for as little as $2 or $5. I was recently visiting another forum, and a woman was offering to write press releases for only $5. That's not even minimum wage. Are you kidding me?

The question is why? Why do some marketers place so little value on their time and talent? When you undervalue your services that way, it gives the impression that you're desperate. Continue reading How Much Value Do You Place on Your Time and Talent?

David Jackson

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Last edited by David Jackson; 24th June 2010 at 12:43 PM.
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Old 24th June 2010, 05:14 PM   #2
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It's not just in that industry. A friend of mine repairs guitars and he repairs them better than any one in the city. I've never had one compalint in the 3 years i've worked with him and he's fixed over 1000 guitars with me alone. He's in demand but not amazingly in demand.

One day we were at his shop talking and he shows us this guitar he repaired. He got the job from a music store who couldn't handle the repair. He was amazed that such a big name store couldn't fix such a "general repair". The conversation came around to how he decides what to charge. He said for this job it took 10 minutes so he charged them $5. I asked hom how long has he been repairing guitars and he said about 20 years.

I suggested to him that it took him longer than 10 mins to fix. That it actually took him 20 years + 10 mins to fix and that he should charge far more. That the knowledge he gained over the years is what helped him get the job done. He thought I was crazy.

When someone provides a service of exceptional value it's okay to charge more! He didn't get it. I'm not saying gauge the customer but he's able to do something that very few people do. That has to come at a higher price in my mind.


Last edited by footprintsmusic; 24th June 2010 at 06:01 PM.
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Old 24th June 2010, 05:50 PM   #3
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Originally Posted by footprintsmusic View Post
When someone provides a service of exceptional value it's okay to charge more! He didn't get it. I'm not saying gauge the customer but he's able to do something that very few people do. That has to come at a higher price in my mind.
Well said. Well said, indeed.

David Jackson

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Old 25th June 2010, 09:01 AM   #4
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I have been a member of this forum for awhile and decided to jump in on this post. David is absolutely right about placing value on time and talent. I am a copywriter and have had potential "clients" (I use the term loosely) stumble upon my website who place very little value on copywriting services. One of the questions I ask when prequalifying new inquiries is not only the scope of the project, but what they had in mind for a budget. For the people that want something for nothing, I politely remind them of the time, research, editing, conferencing, etc involved in creating great (original) copy and decline the business. So value your time and talent and stop settling for less than minimum wage.

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Old 25th June 2010, 08:12 PM   #5
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Originally Posted by copywriter57 View Post
I have been a member of this forum for awhile and decided to jump in on this post. David is absolutely right about placing value on time and talent. I am a copywriter and have had potential "clients" (I use the term loosely) stumble upon my website who place very little value on copywriting services. One of the questions I ask when prequalifying new inquiries is not only the scope of the project, but what they had in mind for a budget. For the people that want something for nothing, I politely remind them of the time, research, editing, conferencing, etc involved in creating great (original) copy and decline the business. So value your time and talent and stop settling for less than minimum wage.
Thank you, Denise. I couldn't have said it better myself.

David Jackson

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Old 28th June 2010, 01:23 PM   #6
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I always tend to think this isn't so much a function of the service provider undervaluing their service, but rather, a market of clients who don't value what you provide.
I couldn't disagree more. If clients don't value what you're providing, it's not their fault, it's yours. Either you're doing a poor job marketing your product or service, or your product or service is of poor quality.

In either case, the failure is yours, not theirs. And it's an indication that you need to go back to the drawing board.

David Jackson

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Old 29th June 2010, 10:25 AM   #7
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Oops, I think I was unclear. I completely agree with you. The fault lies in the service provider.... it's their obligation to offer a product or service that clients are willing to pay for.
No problem. You misspoke, it happens.

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Old 29th June 2010, 02:08 PM   #8
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I happen to think the web design industry goes the other way on this issue too often though, making the average consumer think they do far more than they do, especially the guys who sell what amount to crappy templates for huge amounts.

Don't get me wrong there are plenty of designers undercharging but most of my clients come to me because they can get what some studio is charging 2000 for for 1000 etc. It happens quite often. By the same thing I do mean the same quality too, not just a relatively similar service with poor support.

I'm basically self promoting here I realize but I think I personally make a good example of what I mean, if I can do a site for a couple hundred and make profit then why does company x need to charge twice as much? Because they employ people to answer the phones? I'd feel guilty charging some of the rates I've seen online... but then again a bigger apartment might be nice lol

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Old 1st July 2010, 12:43 PM   #9
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You have to balance what you offer with
what your audience wants and is willing to
pay for it.

That's a balance that is more readily achieved
when you know who your target market is, what
niche you serve, the service you provide, and its
value to that market.

There will always be a demand for products/services
at multiple price points. Can I buy the same thing
at a Wal-Mart Supercenter that I can buy at a
specialty store? Sure...I'll end up payiing
more for the same product, but its not so much because
of the product itself, it's the "Value-Added" concept.

Perhaps there's more personalized service, perhaps
there's a more pleasant atmosphere, environment,
perhaps they have a customer service dept that actually
understands customer service, maybe the staff is better
informed and more helpful and has a more pleasing
uniform or demeanor, maybe there's better follow up,
maybe they actually care about providing a better
quality experience, etc.

There's nothing wrong with charging a higher price,
just as there's nothing wrong with charging less. It
depends on what resonates with you, and what
resonates best with your customers. If you're charging
incredibly high prices, the market will sort itself so
the only clients you'll have will be those
who feel your prices are worth what you provide.
And if the value you provide doesn't match
with your prices, there's a chance that will be None.

I've helped people grow their biz and
improve their biz profitability from the
point of not having enough to live on, to the point
of having plenty and then some.

Right now I only charge $397/month for the one-on-one
customized coaching program,
and $147/month for the group coaching (which
includes one personal session per month). That's
a bargain if I can help them build their biz to multiple
times their income over the next year and beyond.
But if people don't see the value in that,
they're obviously not going to pay for it.

I could charge less...I could charge more. Depends
on how I value my services, and how my clients
value my services. As I fill my practice and
get the last few clients I need, I probably
will increase my prices. It's supply and demand.
But for now, the supply (my available time slots)
is still ahead of the demand. So I offer a free intro session.
See: http://abetteryoucoach.com/profitbreakthrough/

That's grossly undervaluing my time and knowledge and
skills and expertise. But how can the potential
client know that I'm a good fit for them, and vice versa
if they don't have a "no barriers" method to
try me out and see if we resonate with each other?

I love this discussion thread and
I appreciate everyone's input.

I guess my point is that
people have different reasons and methods for
valuing, pricing and marketing what they do and how.
For most, I would guess that
their pricing strategy is not a well thought
out plan, but more a function of confidence
or just plain ol' inertia - this seems to be working,
why mess with it?

Thanks again for this discussion
and everyone's input.

Theresa

If I can be of service let me know.

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Old 1st July 2010, 01:15 PM   #10
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Quote:
Originally Posted by mattcarpet View Post
I'm basically self promoting here I realize but I think I personally make a good example of what I mean, if I can do a site for a couple hundred and make profit then why does company x need to charge twice as much? Because they employ people to answer the phones? I'd feel guilty charging some of the rates I've seen online.
Yes, you are self-promoting, but you're doing it within the context of the discussion. So, I guess it's okay. At least, that's what I've been told.

David Jackson

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Last edited by David Jackson; 1st July 2010 at 01:21 PM.
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