Pricing
As an entrepreneur, independent contractor, employee, or whatever label you feel comfortable applying, you must set a price. You have to determine the value of your services, your skill set, the value you create, basically what you deliver to a client or organization. As an employee this process is simpler because your employer sets your salary and you ultimately reach an agreement with their compensation package. But things are a bit different when working independently.
With or without employees, as an entrepreneur you have much more to consider. Your professional skill set, your abilities relative to your peers. Are you a novice, a subject matter expert, or somewhere in between. Once you’ve determined your level of expertise you then need to determine your value relative to your peers. What, if anything, do you add above and beyond what your competition. How are you different and how does that assist in justification of your pricing?
Once you’ve worked out that formula, the last thing is flexibility. In these economic times, as well as all others, are you flexible in your pricing? What about payments? Will you barter your services? What product of services does your business need that you can trade in exchange for the services of some of your clients? Can you set up an arrangement where you both benefit?
I had the occasion last night with a client and we’re in the process of determining something beneficial for us both. Minimal amounts of cash will be exchanged but we will both have the opportunity to leverage the expertise of each other. Each of us will benefit immensely, probably more than a simple exchange on a fee for service basis. I’ll write a follow up later.
Today, Sunday, May 3, 2020, I am grateful that:
D.C. and I had a conversation last night. Neither of us were happy with the outcome but I’m certain we’ll reach an amicable agreement. It’s the process of determining solutions that’ll deliver to us both what we ultimately require.
Cousin Beverly and I had a chance to talk yesterday. She’s back at the SBA and we haven’t had an opportunity to talk in a couple of weeks. I value her friendship and counsel and it’s always a pleasure to visit, mostly virtually, with her.