When Lowering Your Price Is A Bad Idea

There are two scenarios where lowering your price is an extremely bad idea:

1. When you are selling products, and lowering the price will result in you selling your product at a loss or too small of a profit for you to pay your other expenses of justify your time.

2. When you are selling a service, and lowering the price will result in you feeling like you are giving your time for too little reward.


In the second scenario, people will try to get you to lower the rate at which you charge for your time.

And if you allow someone else to dictate what your time is worth to you, you run the risk of getting the job at a rate that does not seem to gel with the amount of money that you think your time should be worth to you.

This was brought home to me last night, when I was talking to one of the people I mentor online.

This person was telling me that he had taken on a new client, at a price that he is now regretting.

As my mentoring student told me, the client talked him into lowering his standard rate for writing, and now that he understands what kind of writing the client expects done, he is getting only $6 per hour for the work!!

Yeah, he got the job when he was in need of a job, but now he is beginning to despise his client and despise the work, because in this case, he allowed the client to talk him into working for less than minimum wage!!

Regardless of the type of work you provide to your clients, if you let the client talk you into a lower price, you may begin to hate your job and hate your clients -- and this is a sure-fire way to ruin your attitude and your desire to keep running your business.

Before you ever allow any client to talk down your regular prices, you should understand two numbers:

1. The amount of money that you would like to earn by the hour; and

2. The absolute lowest amount of money per hour that you are willing to accept from a client.


Having a proper understanding of these two numbers will help you to make better decisions about what jobs you will take on...

But before either of these numbers can be understood in context of the job, you must understand what the job will entail.

It is one thing to know that the average article will take 3 hours to write. But sometimes, the subject material will be more in-depth than what you can complete in 3 hours.

If that average job takes 3 hours and the specific job requires 6 hours, and you had negotiated your price down to the lowest price that you are willing to accept for a job, when you sit down to do the work, you will soon realize that you are working a job that pays half your lowest acceptable rate for doing the work.

Don't let this happen to you...