This blog post is coming to you from my childhood home in the green and pleasant countryside of southern England….the beauty of having location-independent businesses is that, as long as I have my laptop, iPad, Apple pencil and wifi, I’m all set!
I’m travelling around Europe for 6 weeks, mainly staying in England and reconnecting with some of my favourite places (Cornwall and The Cotswolds) before sailing the Greek islands. I shan’t be taking my laptop or work there!!
This is the high street in Guildford, my local town. It’s picture perfect – especially with this gorgeous English summer weather we’re enjoying!
Anyway, I promised you some perspective-altering anecdotes about pricing to make you ponder a moment about how you price your work.
Charging by the hour doesn’t help the customer.
⭐ You take your car to the garage because it needs fixing – you don’t know what’s wrong. The mechanic says he charges $50 per hour, and that you can come back at the end of the day. When you pick up the car, he charges you $400 for his 8 hours’ work. But the mechanic hasn’t found the problem and the car still isn’t fixed.
Hard work isn’t the answer.
⭐ A miner works in a diamond mine, using his pick-axe to uncover the hidden gems. It’s back-breaking work. He excavates many lumps of plain rock and one containing a diamond. The plain rock took as much hard work to mine as the rock containing the diamond, but only one rock is more valuable than the others.
⭐ A block of empty land can sell for millions. No hard work involved at all. The value is not tied up in how hard the vendor had to work; the market dictates its value.
⭐ If value and price were just based on how hard business owners worked, no business would ever go bankrupt.
Everyone likes choices.
The third gardener also comes to the house, but he starts asking the home-owner questions: “How long have you lived here? Do you enjoy gardening yourself or not? What are the neighbours’ gardens like?” etc
From the conversation, the gardener discovers that the home-owner is too busy to do any gardening. She just wants to hire an expert so she can enjoy a beautiful garden stress-free. He also learns that she wants to sell her property in a few years’ time.
The gardener goes away and draws up 3 options:1) His hourly rate.2) A monthly rate for garden maintenance.
3) A monthly rate for garden maintenance and landscaping to increase the value of the home and improve curb-appeal for when the property is on the market.
Which gardener do you think the home-owner chose?
And that, my creative friend, is the end of Story Time today 😊
(*based on a true story – and the homeowner chose the 3rd gardener’s 3rd option. Discover your client’s desires, present yourself as the expert and deliver the dream hassle-free)
If you want help with pricing, join me in How To Price Your Work. I’ve bundled up some key strategies, ideas and a pricing formula for just $47.