Knowing Your Worth
I witnessed something atrocious yesterday.
As I was waiting to get a haircut, the other barber in the shop had a peculiar interaction with a customer. This customer asked the barber for a jar of hair product, and the barber quickly obliged by grabbing it off the shelf and handing it to him. "How 'bout I give you $11 for this?" The barber looked stunned; stunned enough that she froze and looked uncomfortable. The shelf price is $24, by the way (it's the same product I use). A few more interactions happened, but I didn't hear. She eventually responded, "$11 is fine." But then, I heard him ask, "Well, what does it cost you?"
While cutting another man's hair, my barber jumps in, "It costs her $12." The man, being ever so thoughtful and generous (tongue in cheek), said, "I don't want you to lose money. I'll give you $12." I can't put in writing the things I wanted to do to that jerk. He couldn't have been more demeaning in his approach. In short, he treated her like a single penny of markup on the product from her cost would have been unfair to him. Again, I wanted to do things that would have landed me in jail.
Whether you're an entrepreneur or work in a traditional job, I cannot stress enough the importance of knowing your worth. Sure, some people think they are worth far more than they are (you know who I'm talking about!). However, most of us far undervalue ourselves....especially small business owners. Yesterday, that barber grossly undervalued herself. Selling product is a meaningful part of her business's revenue stream, and some jerk weaseled his way in and undercut her.
I have a rule in my coaching/consulting services. If I quote a package for a prospective client and they ask for a discount, I won't let them hire me....not even at full price. Their request means they don't value what I'm bringing to the table, at least not to the level of what I'm charging.....and that's okay. My services aren't for everyone. Some people don't want my services at all. Some people want my services, but at a much lower price. Neither of them should hire me. It means I'm not the right person for them. I'm not mad at them for it, and I certainly don't take it personally. But that's not the right client for me.
It reminds me of a moment I had early in my coaching career. One of my friends suggested that I immediately double my rates. Hesitant, I told him I would tentatively give it a shot later in the day, as I had two consultations. I quoted both prospects the same price, roughly double as my friend suggested. The first prospect said it was the biggest discount in the world and asked if we could start immediately. The second prospect said it was a massive ripoff and people would be stupid to hire me.
Whatever you do, it's not for everyone. Your hourly wage. Your annual salary. Your sales commission. Your fee. Some people will laugh at you, calling you a ripoff. Others, though, will see what you really bring to the table and will eagerly pay you to serve them well. Know your worth, and don't let a couple jerks knock you off your path.
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