5 Things You Must Do to Break the Cycle of Under Charging, Under-Earning, and Overworking

Time, energy, and money. These three resources influence everything we do (or don’t do) on a daily basis. They impact our ability to live our paidpeanutsgreat lives and they are undeniably intertwined.   I guess that’s why I hate to waste any of them (especially time).   If you think about it, how you choose to use, guard, and maximize these resources directly affects your success in your business and your personal life.  Not making the best use of any one of these resources could send you in a downward spiral.

For instance, if you aren’t using your time as efficiently as you could be, you’re probably working too hard (expending too much energy), working on the wrong things (wasting or misdirecting energy), or working too little (not maximizing or capitalizing on your energy).  Each one of these scenarios leads to under-earning (not maximizing the amount of money coming in).  This, in turn, leads you to feel like you need to work harder and longer.  The result is a vicious cycle of over-working for way too little money, and way too little satisfaction.

Unfortunately, I see many entrepreneurs working way too hard for way too little money quite frequently. Many times it’s because they don’t have systems in place that would save or maximize their time, money, and energy.

However, one of the costliest mistakes I see is undercharging.  When you undercharge for your services, you are, in essence, choosing to work harder and longer for too little money.  You are choosing to waste your time, energy, and money.

Here are my top 5 tips to break the cycle of undercharging, under-earning, and overworking:

  1. Do the math. Sit down and figure out how much income you need and want to bring in on a yearly, monthly, weekly, daily, and hourly basis. Be sure to take into account how much time off you’d like to enjoy each year and how many hours you want to work per month , per week,  and/or per day.  You have to be clear on what you need to make in order to be profitable and live the lifestyle you want.  Having a clear goal is the first step in achieving success.
  2. Charge based on the value you provide. Charging by the hour is arbitrary and doesn’t really make sense.  Think about it.  Why would anyone pay for someone else’s time?  People hire you because you have the skill and expertise to help them solve their most pressing problems and fulfill their greatest desires.  What is it worth to them to have their desires met? What is the cost of them continuing on without solving their problem?  Provide great value to your clients and charge accordingly.
  3. Package your services for consistent income and consistent results.  When you default to charging by the hour, by the session, or even month-to-month, you may be setting yourself up for inconsistent income and your clients up for inconsistent results.  I know some people will argue that they provide a service that can’t be packaged, but I’ve yet to come across one.  Even if you’re a hair stylist, you could create a yearly package that includes haircuts every six weeks, a bi-weekly deep conditioning, and a holiday up-do.   You’re client would have healthier, better-looking hair and you would have consistent income. My heating a cooling company has packaged their maintenance services because everybody needs it but people forget to schedule it when it’s due.. Packages maximize the time, money, and energy for you and your client. I’m not saying you have to package everything, because sometimes people do just need a one time service, but do not automatically default to charging by the hour or session.  Really consider what would get your clients the best results, and in the process, generate consistent sales.
  4. Realize you are not Wal-Mart.  You are not trying to impress people with how cheap your prices are.  Don’t market to bargain hunters.  Market to your ideal clients who expect the best and are willing to pay for it.  If you’re wondering about how to do that, don’t worry, I’ll give you some tips in next week’s blog.  The most important thing to remember is that you don’t “discount” your services without good cause.  Simply thinking your client can’t afford your services is not good cause.
  5. Own your value. Stand firm in the value that you provide and what you’re worth.  No one can ever pay you less than what you think you deserve.  Think about it …

I’d love to hear what you have to say about under-charging, under-earning and overworking. Please feel free to share your comments below.

Do you need help getting more sales and serving more people? Click here to sign up for your Complimentary Profits and Impact Session.

About Tiffany deSilva

Tiffany deSilva is the founder, CEO, and visionary leader of BrightFire Women’s Business Network, LLC.

BrightFire Women’s Business Network is the premiere sales training and coaching resource for service-based women entrepreneurs who want to increase their sales, serve more people, and change more lives.

Feedback & Comments:

  1. Dee Doochin says:

    Tiffany,

    I love your new photo…the one with your hair flowing and your laughing eyes and smile. It is wonderful!!!

    Shalom,
    Dee

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