First, your worth and what you charge = not the same thing! Let's disentangle the two right off the bat.
So, for female entrepreneurs of color, why is it sometimes tough to charge the price we need to sustain our business?
I share a personal story about why it's sometimes difficult for me to charge for my financial planning services.
When I'm sitting down across the kitchen table with a potential client, I see my parents, immigrants from Mexico in the agricultural community who are doing the best they can with what they have. During the initial conversation and intake of a potential client's situation, I can kind of get a sense for whether or not there will be room in their budget for my services. When I charges a fee and they’re not able to take on the payment, I feel like I've turned away my parents and left a family behind. I believe in the services I provide, as financial advisors, we know so much, we have access to tools and resources to create and manage wealth. I believe in it so much that I want everyone to have it.
My wishes for prospective clients to have the knowledge and the resources that I offer to clients to help them build a solid future collides with the fact that I need to fill my own cup in order to pour into others.
Why female entrepreneurs of color need to charge a fair price:
First and foremost: because you're a business owner and want to grow your business. There is absolutely no shame in that being the first, if not, the only reason. Building a successful business, getting paid, growing your generational wealth for wealth building sake.
Second, our business is often rooted in giving back to the community in some way. We often employ other women of color and usually the more revenue we make the more we pay taxes. Our business thriving means more high quality jobs and a higher tax base for the community. As your business thrives, it also enables you to consider incorporating charity or giving back to a cause important to you. According to a study by the Women's Philanthropy Institute that looked at three unique data sets on charitable giving, women are more likely to give to charity and give more than their male counterparts across generations and marital status.1
MINDSET TOOLS FOR SUMMONING THE COURAGE TO CHARGE WHAT YOU'RE WORTH:
1. Take a moment to really think about what you offer.
Specifically, how does it impact your client?
For example, for a photographer, their service and product helps you communicate your brand, your message, who your ideal client is, your vibe, etc. That for me as a business owner, is super super valuable. So think about the actual VALUE you are bringing with the service you provide.
2. Have your own back on your pricing.
Get in front of potential clients, communicate your price, and have your back on it! If you need to change your price based on trends, maintain a growth mindset about it, but experiment with it for long enough to see if it sticks.
For Tori, she has seen the impact on her team of buckling under pricing pressure and doing a really great job for cheaper than the originally set price. The time spent by her team, the wage she is paying her team, and the price she caved on resulted in an unprofitable client.
3. Acknowledge that there WILL be people who won’t pay what you’re charging.
And that's okay! Either they don't value what you're offering (also okay), they are choosing not to make room in their budget for it, or it's not the right time for them. Judgments about your pricing from anyone who isn't interested in giving constructive feedback are irrelevant to your business.
TANGIBLE TIPS TO IMPLEMENT:
1. Not sure what to charge? Look at what your competition is doing.
You can google like photographers around me shooting portraits, weddings, whatever your niche is and get an idea for what the going rate is. Just use it as information for what people like you are charging.
What is a fair market rate?
2. Take Baby Steps With Different Packages
If you are a little nervous about jumping from what you're charging now to what you should be charging, create a tiered system or packages with different services offered for various prices.
Don't pick too many, pick up to three. Then once you're ready to move to the price you're really going for, take the leap with abundance!
3. Stick To A Process To Communicate Your Pricing
Create a presentation or a process during your meetings that includes your fees so you don’t shy away from presenting it during the consultation. If you skip over it, own the power that you have that you chose to skip over it and try again next time!
And lastly, if you are doing business with a female entrepreneur of color, please pay her what she is worth.
1 https://philanthropy.iupui.edu/doc/institutes/wpi-give-more.pdf