Sharing Daily Discoveries About Personal Finance And Business Topics

Staying Firm On Rates

It was interesting today as I was talking to two people who mentioned that they were running some type of business that they enjoyed a lot before. However, one of the downside they both mentioned that while running the business they would often deal with a certain group of people who always insist in getting some kind of discount.

In the effort to want to give good service, they then dropped their rates to satisfy the customer. However, the downside to this is that their profit margin is almost nill as a result or too little to justify all the work that has to be put in. Not surprisingly, as a result the both of them decided to exit out of the business with that being a big factor.

When it comes to rates and people constantly trying to get a better bargain in these situations, I always keep in mind just like for a personal financial situation that if you don’t take care of yourself then you won’t be able to help others anymore. Therefore, you can’t always undercut yourself in these ways.

Many times too, a good way to deal with this in a polite way is to in fact recommend solutions that do fit the person’s budget whether it be yourself or someone else. I know creative fields usually have the most difficulties in this. For example, a designer is constantly ridiculed for charging high hourly rates as people constantly compare them to pre-built/template solutions.

Don’t forget too that if you offer something unique and believe that your offerings will give the other person the exact results they need to prosper then it should be worth every penny. Can you be flexible? Of course. But if the person’s goal is to always get the cheapest and not necessarily the best value, you have to think to yourself is that the type of people you want to keep attracting too.

Obviously in can work either way depending on your choices, but in many occasions staying firm with your rates can often be a great way to attract the exact type of clientele you are looking for while making sure you take care of yourself financially too.




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