Fresh Start Monday #017: Charge by impact, not time

Before coaching, I had never charged for a service. Money has always come through a paycheck. I didn't need to ask for or determine that number.

I've been reading The Prosperous Coach by Steve Chandler and Rich Litvin. Their writing has shifted my mindset toward what I charge, and you can apply it to almost any service business.

When I looked for my coach, I wanted to hire the best. I wanted to know what kind of coach I needed to be to charge a premium price eventually. If I want people to pay high fees, it didn't feel authentic to shy away from that myself.

When he first shared his rate, I almost dropped the phone. Can you please repeat that? After the call, I remember calculating how much he would make per minute.

I'm learning that the sticker shock came from my flawed perspective.

In the chapter titled "They pay for more than the hour," they included this little story:

"A woman once saw Picasso doodle on a napkin in a restaurant and she went over to his table and asked him how much she'd have to pay to have that napkin. He said, $20,000.

She said, What?!? I watched you, and it only took you five minutes to do it!

He replied, No madam, it took me my whole life.

I've always been that woman, regardless of the price.

One downside of independence as a value is that it applies to everything. My auto-response is to refuse to ask for help. I believe I can do everything myself. I didn’t pay for any services.

I equated money with time.

This book has taught me you're not offering your time. You’re offering your training, experience, tools, knowledge, and everything else you've done to get you to this point.

More significant than that, nobody pays for your coaching. Or you. They're paying for their dreams. That applies elsewhere too.

A photographer will capture memories from your wedding day that you will cherish for eternity.

A web designer and developer will create a beautiful website that might remain a fuzzy outline otherwise.

A kitchen contractor brings to life the cozy breakfast nook that your family will make memories around for 20 years.

It reminds me of the priceless Mastercard commercials. We make investments and spend money, but some services are priceless. They stand the test of time.

Previously I focused on the time I'm giving, the services I offer, and the support I provide, but now it's the difference I'm making in people's lives.

"Money is a sign of the impact you are having in the world." - Rich Litvin

Applying it to your life

Part of my process for learning how to charge and see value for my services has been a willingness to pay others. If you don't pay, why should anyone else?

Does that hold true for you?

Equate money with impact. You can't pull them apart.

What difference are you making in someone's life?

An hourly rate fools you into thinking about time spent. Your impact goes far beyond the time you spend with someone.