The Frustrating Reality Most Professional Women Face
Have you ever felt completely stuck when trying to charge what you're worth? You're not alone. Despite their best efforts, most professional women struggle with undervaluing their services.
I’ll never forget the time when I quoted a potential client my rate for helping her with her website. This was back in the day when I did that kind of work. I was grateful to have someone interested in my services, and I wanted the contract.
When we got to the point in the conversation when it was time to discuss money, I told her what her cost would be to work with me.
She laughed. Hard.
And then she said, “Oh, Mary Lou. That’s not nearly enough for the work I need done.”
Needless to say, I didn’t get the job.
Not because I was too expensive.
Because I didn’t ask for enough.
A clear sign in her mind that I didn't know what I was doing.
My story is not unique. Whether it's underestimating their own value and expertise, fearing rejection or losing clients over higher (or rock bottom) rates, or overlooking the cost of doing business in pricing, the road to financial empowerment is riddled with pitfalls and frustrations for many women.
But it doesn't have to be that way.
Why You're Stuck (And What to Do Instead)
The reason so many women get stuck is that they're making some common yet easily avoidable mistakes. Once you understand what these missteps are, you can start taking the right actions to confidently charge what you're worth.
Here are three of the biggest blunders holding most professional women back. I've made all of these, plus more:
Mistake 1: Underestimating Their Own Value and Expertise
Many professionals fail to recognize the full extent of their knowledge and skills, leading them to set rates that are too low. This not only undermines their value but also attracts clients who may not appreciate their quality of work. My story illustrates this reality. Even though I was new to website work, I brought some solid universal skills with me including communication and problem-solving skills that warranted a higher fee for my services.
Rather than falling into this trap, you should:
- Acknowledge and articulate your unique value proposition. Easier said than done, especially early in your career as a freelancer or small business owner. The good news is there are plenty of resources available to guide you on getting your UVP clear and powerful.
- List your skills, experiences, and successful projects to reinforce your self-worth. Adjust your rates accordingly.
Mistake 2: Fearing Rejection or Losing Clients Over Higher Rates
The fear of rejection or losing clients can lead professionals to keep their rates stagnant. This results in feeling undervalued and overworked.
Instead, try this:
- Embrace your growth and communicate your value clearly. Never be afraid to own your experiences.
- Practice negotiation techniques and be prepared to explain the rationale behind your rates.
Mistake 3: Overlooking the Cost of Doing Business in Pricing
Not taking into account the full cost of doing business can lead to undercharging, affecting your profitability.
A better approach is:
- Accurately calculate your rates to ensure profitability.
- Review your operational expenses regularly and adjust your pricing to cover these costs plus a healthy margin.
Your Step-by-Step Blueprint for Charging What You're Worth
Now that you understand the pitfalls to avoid, let's outline a proven process for confidently charging what you're worth:
Step 1: Conduct a thorough market research to understand competitive rates. (I failed to do this. Had I known what the average rates for website work were in 2011, I would have shown up to that conversation differently.)
Step 2: Identify and articulate your unique value proposition (see the resource above for how to do this). Even if you are relatively new to your work like I was, be confident you have the knowledge and skills they don’t -- which is why they want to hire you in the first place.
Step 3: Calculate your operational costs and desired profit margin to set your rates. A terrific book to help you understand these formulas is Profit First by Mike Michalowicz.
Step 4: Develop clear communication and negotiation strategies for discussing rates with clients. Again, go into every conversation ready to stand tall behind how you can help them solve their problem.
Step 5: Continuously review and adjust your pricing based on your experience, market demand, and operational costs. This isn’t 2012, or 2021. Costs have increased and what you charge needs to reflect that reality.
Start Charging Smarter Today
I never underestimated my worth again after that experience. Even though at the time I was disappointed about not getting the gig, I'm glad I learned the lesson.
Charging what you're worth doesn't have to be an uphill battle. By being aware of the most common mistakes and implementing the step-by-step plan outlined above, you'll be charging smarter and achieving your financial goals in no time.
The path is now clear. All you need to do is take that first step. What's it going to be and when will you take it?
