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How To Charge What You're Worth

5/8/2019

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Charging What You're Worth
How To Charge What You're Worth

Charging per hour is old, rigid, broken and problem with scale 

I went to a mechanic the other day to get my rocker cover gasket replaced because it was leaking oil

Can't be bothered getting my hands dirty replacing it myself

He sat down with me, painfully listing down how much it would cost them per hour on labour + parts to get it fixed

I can't help but kept thinking am I paying for his dinner? Am I paying for his gas bill? 

I don't give a flying fuck about how much he's charging per hour. I just want to know is my problem going to get solved, what value am I getting and I just want the job done 

Guess what? I never went back there again

Your clients HATES it when you're telling them you're charging them per hour for your work - they DON'T see the value in it

And It's a selfish way of running a business and with this old model you can't really grow too 

Per hour model is just encouraging you and/or workers to pump more hours into it

Yes, i get it - there's overheads, bills, rent, family, life etc 

There's a better way to price your services 

You're not selling your pounds of flesh per hour 

You're selling a SOLUTION to a problem, you're selling value and a future of what things could be when they choose to buy from you

Price your services based on VALUE 

Ask yourself this question, how much is it worth for them to get their cars done?

If the mechanic reassured me that my gasket will be replaced with no worries - he could have done it in an hour, charged me $300 and I wouldn't give a shit and would have GLADLY pay it

But telling me he gotta spend 3 hours sourcing parts, doing this and that and pricing $100/hour x 3 - fuck this mechanic I'm out and i'm finding another mechanic that can solve my problem 

Think about what value is your clients is getting 

E.g 

Headlight restoration could save them from getting new pair of headlights (look up the price for a pair of OEM W205 C-Class headlights, that will give you a wake up call lol)

Paint correction could save them from getting their vehicle resprayed 

Ceramic coatings could prevent their cars from deterioration

Pre-sale detail could massively increase the vehicle's resale value massively

Price per hour and you'll burn yourself out, but once you price things on value, everything will shift for you 

You can start charging what you're actually worth and that's how you can out-charge your competitors

Because by positioning yourself as value based pricing, you're the ONLY detailer that understands their needs and wants better than they do themselves
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