I have a question for you. I have seen this going on for a while, so don’t get me wrong, it’s not my intention to offend anybody who does this or disagrees with my opinion about it. However, I think that business rates is an important conversation to have with your clients.
There are a lot of people out there I have seen charge astronomical rates for their services. Most of the time, their justification for doing so is that people need to invest in themselves – because the more money they invest in my offerings the more seriously they are going to take it.
I have seen coaches charge so much money and say that this person is going to really stick with it. I have also seen people in my industry who do marketing and social media and they’ll say something along the same principle: “If the person invests this much in their lead generation, then you know they’ll follow through with their leads”
Perhaps there is some truth to that. However, I have never operated on that kind of system. I come from a small business background, and I believe in affordability and charging a fair rate, just as my family did in their business.
When Dr. Rissy’s became ranked in the top 2 for social media in New York, when I started getting my doctorate, when I got my Masters, people said: “Now you are Dr. Morissa Schwartz – you can start charging the big bucks”.
But I have had the same rates for at least the past five years. It is a rate that works for my clients, but most importantly, it is a rate that small and medium sized businesses can afford.
I don’t think I will ever be charging astronomical rates associated with some areas of the competition. This is because rates like that cause clients to expect too much – which often ends in disappointment. People have to cash out of the entrepreneurial game in debt after someone convinces them to spend $100,000 on their program with the hopes of making it back tenfold.
Others say that this kind of pricing allows them to be more selective with their clients, they can take fewer clients and take care of them better. But even if their clients do manage to start a successful business, it is going to take a while to see any return on an investment that size.
In my experience, I have expanded my team whenever I get more clients. But I am curious to know what you think – do you think is better to charge high premium rates and get selective clients, or do you think it is better to be affordable and help a lot more people?
Premium rates or affordable rates? Which side are you on?
Posted by Morissa Schwartz on Monday, September 30, 2019