At a recent Santa Cruz Business Connect meeting, the speaker asked us, “What three things do you need?” Several people didn’t miss a beat and called out “a vacation,” and we all chuckled in agreement. At first I was stymied. While I make a list of To Do’s every day, I realized in a flash that what I needed in order to answer that question was a set of goals — the “three things” I needed would help me reach my goals. But, surprise, I really don’t have any goals. So I made a mental note: come up with some goals.
Not to be a networking wallflower, I was able to come up with three things I need which I shared with the group:
1. PROSPECTS IN THE PIPELINE: I have a lot of projects now, but I need to keep the pump primed so I will have work in three months, I said.
2. BETTER TIME MANAGEMENT: It would be nice to have more time with my family, since I ignore them when there is work to do. (I didn’t feel that strongly about this one because I really like what I do.)
3. RAISE MY RATES: I confessed that I don’t charge enough for my services and that I haven’t raised my rates for many years.
The issue of pricing was heavy on my mind. Just the week before, an associate and I pitched and won a web development project. When we met with the client, he said, “Your quote was very competitive, very competitive.” That’s great I thought; we were in the right ball park. Later I found out that the other bidder’s proposal was three times ours, and the client was prepared to pay twice our fee. Oops. I made a mental note: don’t forget to ask what the budget is.
These days, it’s easy to low ball rates and proposals with companies cutting way back on spending. But it that the way to go? Come in low, get more projects and stay busy (which means you could end up stretched too thin and stressed out)? Or ask for a fee that more accurately reflects the time that will go into the project, and the value of your experience and skills? I think the latter strategy is a smarter strategy, and I believe that despite the recession, companies are willing to pay a fair price for what they believe is the best solution for their problem. Because it’s not just about price – it’s about building a rapport, gaining an understanding of the client’s emotional and material needs, and delivering the solution that will generate the desired results. So if you can do all that, go for it, ask for what you are worth, because you are worth every penny!
