How Much Should I Charge?Written by Laurie Soper
People ask me, “What should I charge?” I say, “Ask your clients.” If they are respectable professionals you want as clients, they will be honest with you and give you a fair price based on their experience, their need, and their ability to pay. They will not try to undercut you. And if you are a true professional, you will charge them a fair price and not try to overcharge them. You will not undercut yourself, either. You will base your price on two things: your value to their business, and client’s value to your own company. Your fee should always be based on criterion of a good relationship. If it threatens relationship, is it worth it? You cannot base your price on your company policy or an annual raise, or what you’re worth to your most lucrative corporate clients. You must base your price on relationship with this one specific client and all your clients. Shortly after I opened my business, I received a call from a chartered bank. They were experiencing difficulties with a team who managed world trading, and they needed someone to teach them a thing or two about communications. I was very excited about this opportunity. I shook their hands vigorously and we retired into a little room, where we discussed their needs and they told me kind of written proposal they were looking for. I listened carefully as these two women talked. I couldn’t wait to sink my teeth into it. I proceeded to tell them how I would approach project and then—poor naïve little me—I lowered my voice and almost whispered: “I should tell you, though, that I’m not cheap. I charge $325 a day.” The two of them looked at each other and giggled. “Did I say something funny?” “When you submit your proposal, you had better charge us twice that, or Manager won’t look at it.” I stared at them, cleared my throat, and replied, “Certainly.” I “certainly” learned a lesson from that encounter. You don’t charge a chartered bank same fee you charge a non-profit organization. I also, unwittingly, had been given an opportunity to grow my business. When you meet a new client you have nothing to lose. Use it to take risks with your fees. Let them teach you what going rate is, what they expect to pay. You might be pleasantly surprised.
| | YOU GOTTA PUT ON A GOOD SHOWWritten by Terry L. Sumerlin
Amarillo, Texas is known for at least two things – Palo Duro Canyon and some of finest people you’ll find anywhere. It was recently my good fortune to be with some of those good people. I was that district’s keynoter for annual safety awards banquet of Texas Department of Transportation. Both before and during meeting part of banquet, I received some good natured ribbing about my Barber-osophy outfit. The red and white stripped vest and arm garters, along with black bow tie, tend to stand out a bit. My shiny head also usually draws comments. When it came time to speak, I felt compelled to respond in kind. First of all, I jokingly pointed out that if one of Austin TxDot guests, who preceded me at mic and who has a haircut like mine like mine, would stand beside me we’d look like two headlights. I then noted that Barber-osophy outfit was my version of an old country and western song. One line says, “If you’re gonna make a livin’ to gotta put on a good show.” In other words, outfit and lots of humorous stories were for purposes of entertainment and uniqueness. The uniqueness part, I believe, is needed in most businesses. At J.B.’s Barber Shop our “show” (uniqueness) is our family atmosphere. It’s a place where customers are called by name and where friends meet. It’s where you’re a friend instead of just a customer. That’s our “show,” and it’s been going on for nearly 50 years.
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