Gina, a silk artist, writes, "I find that when considering value vs. time, I fight two old misconceptions: 1) don't toot your own horn, and 2) reluctance to disappoint friends who want to buy my product but say it is too expensive. While my rational mind says, "It's not personal, it's business!" and that I should broadcast what I do best, I still find myself hesitant to charge what I think I'm worth. I also need to remember my friends aren't necessarily the clients I'm marketing to. It's o.k. if they don't buy from me. I still need to charge a fair market price."
Gina hits on a key point above: friends aren't necessarily the clients you should be marketing to. This is an important point when considering the value vs. time issue. Your market (defined as those most likely to buy) helps determine the value of your services. Though we all like to do business with friends and family, our products and/or services aren't right for all of them. For example, my fourth book is titled, The S.O.S. for PMS: Practical Help and Relief for Moms. Guess what? Not all of my friends have PMS. Consequently, not all of them are potential readers.
It's different if you work for a network marketing company. Your friends may well be candidates for your wares. For this reason, it's essential that each entrepreneur take the time to identify her market. Once you know this, is gets easier to make advertising and pricing decisions.
One caveat: you may have more than one market or more than one pricing structure. I have a two-tiered pricing structure which includes fees for my local market area and larger metropolitan areas. I learned that this was important after I lost two bids to work with New York companies. The reason? Both said my fees were "too low"! Can you believe it? What I charge locally was far less than what's considered average in New York. The difference made these companies leery about working with me primarily because of the value issue. They assumed that the lesser fee meant lesser expertise or lower quality work.
One last thought: if you struggle with the pricing issue for friends and family like Gina does, how about creating a "Friends and Family Discount?" I have an acquaintance in the moving business who does this. Offering this type of discount acknowledges your pre-existing relationships while recognizing the value of your labor and/or artistic ability. The discount doesn't have to be large to be effective. Even 10% will be appreciated (hopefully!) by friends while preserving your ability to make a profit.
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