How to Ask For Money

Do you have trouble charging what you feel you are worth?

Is it hard to ask people to pay the price you’ve set, so much so that you immediately offer a discount or just do it for free?

Do you occasionally fear that someone will question your worth and berate you for having the audacity to charge such an exorbitant amount?

You’re not alone. Let me share what I’ve learned about this, so you don’t have to stay stuck undercharging.

Validation, Justification, and Elimination

Everyone who undercharges for what they do has a justification for it.

Maybe they convince themselves it’s a smart long term play. Maybe they can explain, in great detail, the anxiety they feel. Or perhaps, you see, if we understood the full story, we’d have more grace for their pricing.

And to be clear, all of those are valid justifications and ways to feel. What they don’t do, is solve the problem.

I’m not here to invalidate anyone’s reasons for why they struggle to charge their value. I’m just here to provide a strategy that doesn’t require dealing with that at all.

Numbers Don’t Lie

…but they do tell a story.

What we charge for our products and services must be tied to our needs. If we do the math and learn that to afford our needs, we must charge $150/hour for our time, then that is the floor for price.

That number doesn’t lie, but it is also not the whole story.

What we charge for our products and services is also a signal to the market about where we fit. It’s a story –– the same kind that explains how two handbags can be made from comparable materials and serve the same function while being separated by a massive gap in retail price.

Our price serves two functions: our survival and our positioning.

The “Fact of Nature” Strategy

If you want to stop undercharging, here is how to do it.

1. Do the math

Figure out what amount of money you need to generate. Know that number.

Remind yourself that the number does not care about your justifications. It is cold, unforgiving, and real.

This is the number that sets your floor.

2. Pick the story

Gucci does not ask customers what it should charge for its candles. They tell them it’s $490…for wax and wicks.

Is it a ripoff? That’s the wrong question.

Do people buy it? The answer is undoubtedly yes.

Why? Because it is a story.

Give your customers a story. Choose where you are in the market and charge more than what covers your needs.

3. Follow the policy

Notice how in steps 1 and 2, you didn’t have to ask anyone for anything. There was only a spreadsheet and a choice.

Now comes the easy part. Repeat after me:

That is the price.

Why?

Because that is the price.

It’s just your policy, and it’s out of your hands.

When you go to the movies, the price of admission is what the theater charges. There’s no negotiation. If you want to see the movie, buy a ticket.

The theater only drops the price when it’s been empty enough times to know it’s not working.

For you, let’s call that a minimum of 10 times. Pitch to 10 opportunities. If no one bites, either reframe your pitch or drop your price, but never below your floor.

Don’t forget Elementary School Math

You might be scared of no.

But not every yes pays the bills.

Sell 100 widgets for $10 each and you might get a lot of people to say yes. You still need 100 people to say yes.

Sell 10 widgets for $100 each and you might get a lot of people to say no. But you only need 10 people to say yes. Those 10 people just proved where you are in the market.

Deliver

Everything we’re talking about here assumes that you can deliver on the promise. It assumes you’re not another dime-a-dozen grifter.

But you’re on Becoming Superhuman, so I’m confident you are trying to help people. You care about your craft. You’ll probably even overdeliver.

So give yourself a rest from the doubt and anxiety. Stop making the decision fresh each time.

1. Know your numbers
2. Set your story
3. Honor your policy

I’d ask you to let me know how it goes. But I already know how it will go if you do this.

Don’t forget about me when you make it big. 😉

I hope you enjoyed this post!

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