How to Charge What You are Worth

Homeless Man

I’ve just finished reading an excellent book by Dr John Demartini, called How To Make One Hell Of A Profit and Still Get In To Heaven.

One of the exercises Demartini recommends is to determine your hourly value by starting with a number and then increasing it until you get to a value you feel comfortable with.  He recommends tuning into your heart in order to see what you feel is a good value.  Too little and you’ll be cheating yourself, too high and you’ll feel like a fraud.  I decided to give it a go.  I used a variation testing technique using a kinesiology which tests the strength of your muscles when you make a statement.  You ask a question and get an affirmative or negative response.


So I started with the question, what is my hourly rate?  How much am I worth per hour?

I started at $500 I got a yes
Then $1,000 I got a yes
Then $2,000 – yep
Then $10,000 still a yes
I kept going…
When I got to $100,000 per hour I got a a little suspicions
Ok am I worth an infinite. amount?  YES. –  ok, of course I get it


Of course I am a human being our value is priceless.


I realized I was asking the WRONG question.  When it comes to charging what you are worth.  You are worth infinite so stop worrying about that.
Now the question to ask is how much value can you bring to the clients you are serving.  How do you communicate that to the client such that they will want to pay for it.   When you work out how much value you can bring to the client then the next question is:
What ratio of that value are you going to charge the client?
A ratio of 3 to 5 is what is expected.  A ratio of 10 to 1 and above is exceptional value.
Now how do you calculate that? Well that depends on your line of business.  As a coach I tend to calculate the value I bring to a business over a year (but I could go beyond that).  For example one of my clients increased his prices by 67%.  Which had a similar effect on his average pricing.  I can calculate how many clients he will bring on at this new level over the year and calculate the incremental value and have this as a measure of value.
If you want to take a deeper look at how much you charge, how to determine your value and how to communicate that to your clients book in for a business strategy session.

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Image Credit: swamysk


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