“Why does it cost so much!”… Is usually the response when helping friends with your business, be it your side hustle or main job…
I keep telling myself I will not allow my self to get messed over. But its ‘for a friend’ or ‘its for family’… is what I keep telling myself…
I feel like this or you may feel like this because…
- You feel guilty charging your friends your real price, because your work ain’t cheap.
- You lack confidence presenting your real price to others because you don’t know how they will react.
- You want to give your friends a deal, because you know what they would have to pay if they hired someone else.
- You are afraid to charge what you are really worth because you have trouble believing you are worth it.
But why should I / You feel like this… lets look at it if you wanted a car.
(Yes I know you can get discounts on cars but there is still a base price)
You go to the sales person or engineer and say you want a fast car that looks good to get around in.
They can show you a Lambo, used Honda civic, or tell you to take Uber Black…
They may all look good, some better then others, but what the average person doesn’t know is what is under the hood and the quality of the ride.
- The Lambo costs more and takes more time to deliver as it requires more expertise, but is highly customize-able during the order.
- The Civic cost less, but you would have to pick from predefined models. Also if you need customization, they are add-ons that cost more later.
- The Uber black is super simple, but you wouldn’t use it for everyday and errands.
How this translates to paying for your/my services should be in that when you are a pro with experience, you are able to make Lambos.
Does everyone need a Lambo? No… but if asked, you are going to be able to make it.
To streamline your business you may offer a civic style package, still not cheap but easier to set up/ do.
The Uber style may seem crazy, but a pay as you go model maybe cheaper and easier for them to use… but may not solve your clients solution of wanting their own transportation that is fast.
Giving a discount breaks all these models in the end… and adds stress to a friendly or family relationship…
I bring this up as it’s happened to me a few times and now have formed some strong opinions on the matter.
You need to ask yourself one question on how you to proceed with dealing with friends and your business.
Are they your target audience?
If YES, treat them the same way you would a stranger / new client… as in sign the proper contracts, follow the same process if there is one, keep the business communication in the business hours.
If NO, then do nothing or let them know you can advise them but will not be doing any work.
If the answer is possibly, treat is as a YES but use your Uber / Pay as you go pricing model. This keeps things in your normal process.
To circle back, this means not feeling guilty about the price… you are an experienced pro… you either went to school to be, or been in the business for years and your price should reflect that.
The lack of confidence shouldn’t be there even if starting on your own… you done it (The work / services your providing) before many times, so the real price is just the price of running a business and making some profit.
You also don’t need to give a deal if your already priced competitively.
So, provide advice but you don’t need to oversell yourself if they can’t afford your Lambo, tell them how to get a civic from someone else if they still can’t afford yours. You don’t want to make them one of your bad clients…
Don’t doubt yourself… if you have a line of successful projects/ products/ services behind you, and even failures… you learned from them… which makes you more valuable.