Research your value and request
To remain in business entrepreneurs have to research their worth as compared to others in their field. Likewise, job seekers should do the same prior to accepting interviews so that the final negotiated offer is fair for all concerned.
Keeping an eye on expenditure vs. income is likewise critical for all endeavors including personal living. The idea came to me as we began to purchase food on the east coast. Most items were typically less expensive than on the west coast. Even more amazing is that some of the food was originally grown in the west. Two variables could influence the price differentiators. It could be the case of supply and demand, or it is possible that salaries are higher on the west coast so therefore people can afford to spend more on food.
The point is that by analyzing your market the facts will reflect accurate pricing for services whether a business owner or employee.
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Three components for pricing should be taken into consideration:
1. Going Rate
On average, what are people in your industry charging on an hourly basis or for longer-term projects? With this in mind, do you believe you add greater benefit to the way you provide the service? With confidence you may sell the higher fees but you do need informative insights as to why you are worth the higher amount. Of course, awards, recognition and special achievements add to the credibility of your statements.
2. Targeted Audience
Are you working with a poor or wealthy population? You may have a tiered system dependent upon with whom you are working. In some cases, free of charge will be appropriate for community service. Asking “what’s your budget?” will always lend insight as to what your prospective client is thinking.
As far as settling upon a salary with which you will be happy, conduct online research for comparable types of companies. Many factors will affect the offer. Therefore explore the statistics for your level of education, experience, level of employment, and the area in which you reside.
3. Economics
Business owners not only need to know they will be making a profit to pay bills and have extra monies available for unforeseen circumstances, but expenditures should mirror the economic state of the country. Should the economy be strong, then the act of charging higher fees is acceptable; in a down economy this is not the case.
Likewise, when companies are thriving they will be more generous with the compensation plan by and large. It will be up to each individual to try to negotiate a fair offer. If this is not possible the decision becomes whether to walk away if it’s below what you need to reasonably live on, or accept just to pay the bills. But the latter case is usually short lived. The better plan, if you can afford to, is to wait until the right job and the right offer come your way.
Following the above suggestions will have you headed toward the Smooth Sale!
Read Additional Strategies and Techniques:
Nice Girls DO Get the Sale: Relationship Building That Gets Results, Sourcebooks
HIRED! How to Use Sales Techniques to Sell Yourself On Interviews, Career Press
