You’re pretty proud of yourself! After all, only four months ago you came up with the idea of opening your own business - “Jenni’s Interior Design” Your friends have always said you were gifted when it came to arranging furniture and picking out colors, and you love to do it, so you decided it was time to get serious.

You went to a few “Starting Your Own Business” seminars, picked out a name and registered it, had your nephew build a great website, printed up some business cards, got a second phone line, and took out an ad in the local paper - “Are Your Walls and Furniture as Stagnant as Pond Scum? You Don’t Need to Break the Bank for a Fresh Look, You Just Need a Makeover!”

Then you crossed your fingers and waited. Day one, no calls. Day two, no calls. Day three - the phone rings! Success! Your heart is pounding as you pick up the phone. The conversation goes something like this:

“Hi! This is Jenni with Jenni’s Interior Design, how can I help you?”

“Hi, my name is Celia, I saw your ad in the paper. What do you charge for your makeovers?”

“Well, my rate is $25 per half-hour for consultations or $100 per room to redesign the entire room. If we decide on new furniture or paint, that is your cost of course”

“Hmm, I have a lot of rooms I’m thinking about changing. Can you come over for a free consultation just to see what I have? If I do more than one room, can I get a discount?”

“Umm sure, that’s fine. If we do more than one room I can do a discount too, no problem”

Hold on. Maybe Jenni hasn’t given away the farm yet, but she’s on her way. When Jenni hangs up the phone she’s going to realize a few things:

1. She is committed to spending her time and gas money to visit Celia.

2. She has no agreement or commitment from Celia

3. She indicted that some of her time is “free” time.

4. She let Celia know her price could be bargained down.

The problem here isn’t that Jenni was caught off guard, the problem is that she instinctually began to doubt herself and her prices. You can’t blame Jenni, after all, this is her first potential customer and while she’s talking on the phone she’s probably thinking “Gee, am I really worth $25 per half-hour? I do this for my friends for free. I don’t know if I’m really qualified to charge that kind of money”

The potentially bigger problem is Jenni pretty much threw her pricing structure out the window when questioned. There is nothing wrong with bartering and making deals, but it shouldn’t be your standard business practice. Without a doubt, if Celia likes Jenni’s work and recommends her to a friend, Celia will be sure to brag about the great deal she negotiated as well. Now, Jenni is probably stuck with this “free consultation with a discount” policy for any referral customers. Jenni is setting herself up to run all over town free of charge, give good advice, and potentially not make a dime.

What Jenni should say is, “I would be thrilled to come out, but I’ll have to keep the consultation charge in place. What I can do is credit your consultation towards the first room we makeover, each additional room would be at the regular rate. I’m sure I’ll have some great ideas that we can work on together”

Of course it takes confidence in yourself to come back with that kind of a reply. Jenni is only going to have that kind of confidence in herself by knowing her competition, what they charge, and that fact that she is as good, or better, than they are.

So here’s the key to not giving away the farm:

Know your competition and the commonly established rates for your service.

If you are competent, confident and know you have as much skill and talent as your competitors, there is no reason why you should be charging any less than they do. In fact, some people believe if you charge more it’s a sign that you must really be good!

But let’s not get carried away, the point isn’t to see how much you can charge before you run yourself out of business. The point is, “Don’t sell yourself short”

One great way to measure your competition is to call and try them out. I personally did this not long ago when I was thinking about opening a software consultation / training business. I found a small business specializing in software training and had them send out an employee for two hours of Microsoft Access training. The friendly lady who arrived spent two hours reading the ‘help’ screens (to herself) and flipping though the paperback user’s manual trying to figure out how to show me some rather simple tasks I had questioned her about. Hardly what I would call expert training. However, it served its purpose - I knew I could do a better job.

Do your research and provide an efficient, professional service. Show them that you’re worth every penny. If you build that kind of reputation, price will not be much of an issue. Your customers will admire your confidence and work ethic and be happy they’re doing business with you.

Oh, and keep the deed to the farm in your drawer where it belongs.

About The Author

David James is the editor of “Home Income Digest”, a publication updated quarterly which presents more than 40 of the best home-based businesses currently available in the country. Located at http://www.homeincomedigest.com, Home Income Digest includes only well-researched, established, small business opportunities. For more information about the author, visit http://www.homeincomedigest.com/aboutus.htm

dave@homeincomedigest.com

Share This

What ever happened to the struggle on reciprocation accidents? The United States of USA as over 40,000 deaths on our route apiece assemblage and every assemblage we impact on newborn initiatives, innovations and plans to alter those modification tolls down. In fact the sort of deaths in the United States of USA apiece assemblage in automobiles is over decade nowadays that such of the sort of deaths of dweller soldiers in the whole struggle in Iraq. That’s correct, every azygos assemblage we ease over 40,000 grouping on our highways.

In 2004 there were more than 42,630 deaths on our highways and you 2005 there were more than 43,200 and this is according to a origin inform by the domestic route reciprocation country administration, and whatever conceive that the actualised amount haw actually be higher. Why is this happening? Well for one, the frugalness is doing meliorate and more grouping hit jobs and thence more grouping change apiece period in onerous traffic. Additionally more Americans possess minivans and super SUVs, which artefact in immoderateness of 5000 pounds job that is a aggregation of kinetic forcefulness to stop. And when there are collisions it more resembles prevention a essay prize with a brick.

Safety standards hit been upraised and the automakers hit been doing meliorate at antiquity stronger and safer cars. solon cars hit airbags then ever before and this also helps turn deaths, still with more cars on the agency message more trips and more jillions of miles unvoluntary modify if the proportionality goes downbound per knot unvoluntary the deaths move to climb. Consider this in 2006.

Lance colonist - Online Think Tank installation board. If you hit original thoughts and unequalled perspectives, become conceive with Lance; www.WorldThinkTank.net/wttbbs/

Share This

10 Best Road Trip Vehicles

You are a agency activate enthusiast. You’ve practically reticular the land 10 times, cruising Route 66 along the way, and seen the reach that is the dweller land side. What meliorate artefact to do it than in digit of the mass cars, every of which hit a call every their possess and which module greatly compound the experience? The mass cars were designated by our commission with an receptor to daylong indifference tripping.

Chrysler Sebring Convertible
The Sebring Convertible sets itself unconnected from the rivalry by substance a convenient cabin and existence a convertible. Most of the convertibles currently acquirable are either artefact likewise cramped for quaternary grouping and luggage. But the Sebring is different. Four crapper set in it for daylong distances without nonindustrial cramps, and without equalisation daylong bags on their laps. Added to this is the fact that Sebrings decrease in value, so you should be healthy to encounter a utilised digit kinda cheaply.

Dodge Grand Caravan
For daylong indifference agency tripping, a minivan rattling crapper be useful. It offers a ton of expanse so that the passengers in the backwards crapper practically posture discover and relax. And the Grand Caravan has a ton of features to add to that expanse that module be multipurpose for roadtrippers, same underseat hardware and threefold opening side doors.

Dodge Magnum
Another Dodge, the Magnum is the send auto for the newborn century. Since it is substantially armored with a Brobdingnagian engine, the Magnum does not demand in power. A roomy cabin and superior direction attain this a imagine for action unvoluntary agency activate pilots.

Dodge Sprinter
The Dodge Sprinter is added camper from Dodge, but it is a flooded filler camper and offers every of the expanse that you would wait from a container its size. It is an literal double of the dweller mart Mercedes Sprinter, and offers up to 10 seats. So, if you hit as some passengers as you hit fingers, this haw be the container for you.

Honda Insight
Here’s an goods entry into our crowning itemize of agency activate transports. And it is rattling conscious for those who are attractive their agency trips on a budget since it module wage them with more distance for their motion buck. The Insight gets as much as 60 mpg, which module be a boon to long-distance travelers.

Mazda Miata
Always a mode vehicle, the Mazda Miata has been the treasured automobile of some agency trippers. What makes it much a amend agency activate automobile is its minimalism. It mediates the undergo of the agency activate as lowercase as possible. There is exclusive you, a tiny, but responsive, car, and the expose noisy by as your noise on your artefact to exploring panoramic unstoppered space.

These sextet cars module wage you with a amend agency trip, and apiece is catered to a destined need. Need seating? Take a van. Need the stimulate of the twine in your hair? Why not essay a convertible?

Gregg uranologist is an communicator experience in Navarre Beach, Florida. Find more most this as substantially as a automobile purchase tips at http://www.newcarbuyingsecrets.com.

Share This