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I came across this article and wanted to share. It talks about the importance of understanding how much your product or service is really worth. This is critical for an entrepreneur. I know many of us are so used to people asking for discounts that sometimes it's second nature to want to offer them all the time. But is that really helping your business... or hurting it?
Women in general are givers. Because we hold so many titles and are able to juggle responsibilities, sometimes flawlessly, we mistake our worth. Certain talents come naturally, so when someone comes to us for a product or service we find it hard to sometimes ask for compensation. Well if it’s not you, then I know it’s someone you know.
Isn’t it easy to discuss shoes, handbags, and cute clothes with women we don’t know? Well, that’s how straightforward we should be when it comes to placing a price on our product/services. As a consultant, I’ve found myself asking clients what their budget was and then sometimes lowered my prices by 30% more than what they stated! Elizabeth W. Gordon, author of The Chic Entrepreneur states that, “Money is the language of business, so you need to learn to talk the talk.” I now understand the importance of asking for what I really want – monetarily – and not flinching when I ask. So here are a few common mistakes made by female entrepreneurs and tips we need, so we won’t keep making them.
Female entrepreneurs sometimes diminish their value or worth by trying to offer their product or service at the lowest price. The thought process of this concept is to not turn down a sale. And I wouldn’t advise you to; but think about how hard you work if you are a quality-driven individual. Do you sometimes feel overworked and underpaid; but you set the price?
Tip: As a consultant, I provide a FREE consultation but am sure not to give away too much in the initial conversation. So, place a value on your products and services and stick to it. If you run into a client who has a budget, be sure to ask what their budget is and once you figure out the best value you have to offer them, stick to it! If you have a service, be sure to collect a deposit of fifty percent upfront and once services are completed, request the remaining half. That’s the formula, you just have to stick with it. Remember that people pay for what they want to pay for and if you are scared to ask for payment, they will know it!
Female entrepreneurs barter more than they collect. Although exposure, branding, and networking is the name of the game, you must strategically build relationships that will place cash into your business account. Do you have 500 LinkedIn connections, 3000 facebook friends and/or likes, or over 2000 followers on Twitter but you are not visualizing the compensation in your business account?