Hop in a time-travel machine with me. Let’s go back to the year 2000 (22 years ago - how?!)
“Say My Name” by Destiny’s Child is topping the charts. Tiger Woods just became the youngest player to win a Grand Slam. Low-rise jeans are having a moment.
Let’s say you’re ready to buy a home, and you find one for $300,000.
Over the last 22 years, the US dollar had an average inflation rate of 2.36% per year – a cumulative increase of nearly 67%.
In other words, $1 in 2000 is not nearly the same as $1 in 2022. That dollar is not going to stretch as far as it used to.
Prices for everything–housing, education, gas, food–rise every year. On top of that, supply chain issues during the pandemic caused prices to spike even faster than usual. Between March 2021 and March 2022, the average price for goods and services increased by 8.5%.
Everything else is becoming more expensive…
Well, you should be.
At bare minimum, you should increase your prices to keep up with the pace of inflation.
You should also charge according to the value that you provide to your customers, which increases as you gain more experience and expertise.
As you gain mastery of your craft and become even more excellent at whatever you do, your prices should rise accordingly.
But do you raise your prices regularly?
Boo, I know you, because I was you. My guess is… probably not.
Women entrepreneurs (and other historically excluded business owners) tend to severely under-charge
At Hello Seven, we’ve worked with over 10,000 self-employed women over the last 10 years, as well as non-binary individuals, people of color, and other entrepreneurs from historically excluded groups.
We’ve had thousands of conversations with our clients and studied income data from the US Census and IRS to see how much women earn compared to men.
One thing is clear:
Self-employed women tend to over-deliver and under-charge compared to men in the field.
You’re working for free (by choice)
One UK study of 1,000 freelancers found that, on average, self-employed women charge £120.38 as a “day rate” compared to £149.48 for men – which means women earn about 20% less. In the US, self-employed women earn 28% less.
There’s a simple solution for this problem - raise your prices.
Don’t just raise your prices — double them
When clients ask, “How much should I charge?”, my response is always the same.
“Whatever you currently charge, double it.”
Often, women are so severely undercharging that they could double their income and still be an absolute steal.
Friends don’t let friends undercharge.
Charge according to the value you provide
First, double your prices.
Then, stop charging by the hour. Instead, charge according to the value that you provide.
Help your clients avoid costly lawsuits?
Show your clients how to feel confident and prepared when they step into an important meeting?
Save your customers 100 hours of wasted time?
Allow people to sleep better and triple their energy?
What are the results that you secure for your clients or customers? Whatever they are, I guarantee they’re worth a lot - definitely more than the piddly peanuts you currently charge.
Become the top provider – and charge top dollar
Do you want to be known as the bargain provider of your industry with the lowest prices or best in your industry, the crème de la crème? The choice is yours.
Choose to be the absolute best provider in your field – and charge accordingly.
Whatever you’re thinking about charging? Double it.
Even better, double it and then add a zero or two. That’s more like it.
P.S. It’s time to raise your prices – but you’re scared to do it, or feel terrified that nobody will purchase from you if you charge more?
Here’s what to do: purchase my book We Should All Be Millionaires: A Woman’s Guide to Earning More, Building Wealth, and Gaining Economic Power. Read it cover to cover, particularly the chapter called “Million Dollar Pricing.” This book will give you a whole new attitude about money – and what your skills are worth.