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The Money Mirror: People Value What They Pay For

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Do you routinely, and for no rational reason, charge less than fair market value for your products or services?  Do you take less so someone, less than or equally entitled, can have more?   Do you accept gifts or compliments graciously?

Woman rolling coins

There are those who may benefit from a discussion about overcharging and taking advantage, but this post isn't for them.  This post is for the legions of people who, knowingly and unknowingly, block abundance from flowing into their lives.

A few months ago, I talked with a woman who runs a busy bookkeeping service.  She mentioned that she'd let her assistant go because she couldn't afford to keep her.  She went on to explain that her clients were under such financial strain, and she was looking for ways to help them.  On top of that, her friends were struggling financially and she'd made several loans that weren't paid back.

I learned that she'd been charging the same rates for SEVEN years, and they were far lower than anyone else around, I asked why not raise them to fair market value.  She balked, citing the economy and her fear of losing her clients.

Understanding her fears, I offered her the following:

  • No one should work for less than the market value of their work. Should they? Ask yourself. Generally, this question, when applied to anyone other than the undercharging person, is always answered, "Of course not."  Inherently, we know it's wrong to pay someone less than they deserve, (though some people feel great when they manage to do so)
  • This is a friendly universe and, when left to itself, flows in unbounded abundance.  The ocean doesn't count or control how many waves hit the shore, a citrus tree doesn't have a quota that once reached stops its production, the sun does not just shine on the people who "deserve" it.  Nature's abundance knows no limits.  Align your thoughts with this truth rather than the psychologically driven sways in the economy.  Many people succeed no matter the conditions.  Include yourself in that group.
  • Abundance flows in a cycle similar to breathing. One must inhale to exhale.  One must receive to give. Hindering either action blocks the flow and results in deficiency.  The entire cycle is strengthened when you and your customer/employer exchange fairly and joyfully.
  • People value what they pay for.  Paying for a product or service instills an affirmative belief in the object’s value to the buyer.  Examples of people failing to show up for, care for, or value what they've spent little or nothing on abound.

Her eyes lit up and I saw that she understood and agreed with me.  Yet, within moments, her heaviness returned.  Then the truth came out.  She was afraid to raise her prices because she felt unworthy of earning more. She didn't believe it was "okay" for her to have an abundant income. Wanting to eliminate any legitimate reason for her belief, I asked about her level of expertise and quality of work product.  She was over-qualified, and 100% of her clients came through enthusiastic referrals.

Her finances were a direct reflection of her self perception.

Whether the chicken or the egg came first is irrelevant so long as you can boil one and roast the other. --Laura Day

Rather than focus on why her self image was causing her to undercharge, I wanted to help her immediately.  She must do the inner-work required to shift her beliefs, yet sometimes a positive shift in our outer circumstances is an amazing catalyst.  I asked her to consider making the following changes:

  • From now on, accept ALL gifts and compliments graciously (if the gift isn't to your liking, re-gift it later). Look the giver in the eye, smile and thank them (you are thanking the universe for using that person to give you a gift).
  • Research five people who do what you do, with your level of experience and under comparable conditions (geography, etc), average their rates for the same work and raise your rates to the averaged number.
  • Learn to say 'No' to requests that make life more difficult for you.  Saying no is not rude, rejecting or inappropriate.  It is an exercise
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Cynthia Occelli 5 pts

Ouch that stings! I'm so glad you're sharing this with other return to work moms.

Cynthia

Cynthia Occelli writes at "LIFE: It isn't for the faint of heart ( http://www.cynthiaoccelli.com )" a blog about overcoming challenges and creating your best life using good sense, spirituality and wisdom.

KMayer 5 pts

Charging less than you're worth will hurt you in the long run. It did me! Gave a perm gig a deal, then he hired a "real writer" because didn't think i could do the job! AGGH!
http://returntoworkmom.blogspot.com/2010/07/get-pa...

Cynthia Occelli 5 pts

Today, I overheard a counselor explaining that women always seek more education, care about their clients impressions and feelings and struggle to make the "ask" for money while men cut right to it. I thought about that for a while and I think there is some truth to it.

We need to remind and encourage ourselves and each other to ask for what we're entitled to. I'm rooting for you.

Cynthia Occelli writes at "LIFE: It isn't for the faint of heart ( http://www.cynthiaoccelli.com )" a blog about overcoming challenges and creating your best life using good sense, spirituality and wisdom.

Cynthia Occelli 5 pts

I can see how big of an issue undercharging becomes when much of the price is derived from the crafter's time instead of materials cost.

I really hope messages like these reach the craft makers as well as their customers. By charging and paying fair prices, the whole society benefits.

Thank you so much for chiming in. I appreciate your comment.

Cynthia Occelli writes at "LIFE: It isn't for the faint of heart ( http://www.cynthiaoccelli.com )" a blog about overcoming challenges and creating your best life using good sense, spirituality and wisdom.

oviedostyle 5 pts

This is a great post Cynthia. I am one of those people who has undercharged in the past for fear of losing clients or not finding new ones.
I am going to do some research and reevaluate my current rates. Thank you!

Micro Grants & Free Resources, http://iiwomen.webs.com ( http://iiwomen.webs.com/New/index.htm )

minnie 5 pts

This is a great article. Under charging is a big discussion in the crafting community and these tips are very relevant! thanks!

Love, Minnie

Parenting and Crafting: Thank You For Not Being Perky ( http://www.thankyoufornotbeingperky.com/ )

Fin DIY picks: Indie CraftGossip ( http://indiecrafts.craftgossip.com/ )

Cynthia Occelli 5 pts

You are so right, these ideas deceptively simple, it took me a while to grasp and apply them myself.

Thank you for commenting.

Cynthia

Cynthia Occelli writes at "LIFE: It isn't for the faint of heart ( http://www.cynthiaoccelli.com )" a blog about overcoming challenges and creating your best life using good sense, spirituality and wisdom.

Chris--MomathonBlog.com 5 pts

I especially like these ideas:
--research FIVE people who do what you do in similar conditions, then average their rates to help you determine your rate.
--learn to say no.

So simple, but brilliant!
Thanks for sharing :)