Sales & Marketing

What's Your Market Value?

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You don't get paid for your time. You get paid for the value you bring to the marketplace. How much value are you creating and are you getting paid for it? You don't get paid for your time. You get paid for the value you bring to the marketplace. How much value are you creating and are you getting paid for it?

My wife and I have been having some discussions lately about how to charge for our time and services. Like many people, we have a tendency to undervalue what we have to offer.

The good news is that we each see the other as having more value than we see for ourselves and this has helped our pricing strategy immensely.

I charge four to five times as much for my time now as I did only a few years ago. Am I worth four to five times more than then? Possibly, but I rather think that my own perception of what my time is worth has tripled. That, and the positive feedback that comes from people quickly saying "yes" when you tell them your rates.

It's not just the value of time, either. I've actually seen price tests on new products where a higher price outsold (in units) the lower price of the same product. When it comes to the marketplace, perception is the only reality.

What determines our value? (By the way, I'm speaking only in terms of our market or economic value here. We are each incredibly valuable-make that priceless-people.)

Market value is based on the age-old law of supply and demand. It's determined by:

1. The demand for the type of work you do
2. How well you do what you do
3. How difficult it would be to replace you
4. The demand for you exclusively

Why do some brain surgeons make more performing one operation than another person earns in a year? Because they meet all the above criteria.

The salaries and contracts of many of the top professional athletes today may seem crazy but notice how they match up to this list.

Think about these things and look for ways to enhance your income by positioning yourself well in all four areas.

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