May 20th 2009
Is this the same society that pays for water?
I don’t drink much pop…soda as some of you may call it. But when I want a fix, I really want one. A couple nights ago, I felt I needed a Pepsi or I was going to die. That might sound dramatic, but I felt like nothing else could quench my thirst at that moment. I debated over it, grabbed a couple of dollars and drove to the nearby convenience store that has a pop machine (it was after the store was already closed).
I put my $2.25 in the machine and pressed the big Pepsi button. The bottle that I was dispensed was not Pepsi, though. It was a bottle of water. I was not happy.
Where I live, I’m lucky enough to have great water from my own well, so I don’t buy water unless I really need to. I don’t like paying for my water. I especially don’t like paying more than $2 for a bottle of water that I didn’t want or need.
You see, I have no problem paying that for a bottle of Pepsi because I enjoy it but I don’t have the recipe for good ole Brad’s Drink.
What does this have to do with operating a small business? Well…besides the fact that you people need to make sure your pop machines are dispensing the right things…there’s a lesson on value in here somewhere.
I was talking with my good (virtual) friend Sally the other day about a prospective client she had who told her she shouldn’t charge so much for “simple administrative tasks”. I immediately said, “If it’s so simple let her do it herself then.”
Sally and I chatted about this, and really, when it comes down to it, the services we offer as virtual assistants or writers or house cleaners, are all optional. If people want me to write for them or someone like Sally to take care of the admin needs of their businesses, they have to pay for our expertise and experience. It’s not like we’re doing life saving brain surgery here. You can write your own articles or manage your own social networking plans, but if you think someone can do those things better than you, you do have to pay up.
Sometimes I find it hard to believe that people can’t see the value in what I do as a writer or what I used to do as a virtual assistant, but people seem to have no trouble paying for a bottle of water. Bottled water, people. What would our ancestors say about us buying water?!
If you can read and write, you don’t need me to write your marketing materials for you. But if you think I can do a better job than you, why would you tell me I charge too much? (Yes, I’ve been told this before, just like Sally was told before she wrote this great blog post.)
You buy bottled water because you don’t have to bother to pack your own canteen for a road trip, or because your own water tastes funny. But if there’s drinkable water coming from your taps, you really don’t need it.
I have a feeling though, that most people don’t try to haggle over the price of Evian when they get to the counter.
Why is it, then, that people feel they can haggle with a service provider like they’re at a trading post or a yard sale?
Anyone?
12 Comments »
Pat Williams on 20 May 2009 at 8:51 am #
Yes, I’ve had this comment in the past but what it also boils down to is “How well do you need the business?” IF you don’t need it and don’t want to deal with a client that nickels and dimes you, pass on the client. There are clients that don’t care about the value you bring – they only want the best deal – at all costs. Which they haven’t realized also means at the cost of effectively representing their business.
If you do need the work, then you need to consider how to qualify your value to the client. Explain why you’re worth that much. Explain what goes into your writing. For example, it’s not just the research and time to double check spelling, it’s the education, the years of experience, your ability to listen. Only you know your worth, you need to communicate it to your prospective clients. They don’t know your industry as well as you do. If you do it properly, they’ll know they’re getting the deal they want at your asking price.
Matt Dibble on 20 May 2009 at 9:02 am #
Such an interesting topic! I haven’t bought a bottle of water in probably 2 years (since a road trip to Chicago) and it seems absolutely absurd to me when I see people in a convenience store buying water that has (40% of the time) been poured from the same tap I drink from… with a little salt added, of course. So why then, do I get grumpy when someone tells me I’m too expensive?
My usual answer is “expensive compared to what?” I offer an incredible service (I work in an industry where your portfolio enters the room before you do) to those who can’t do it themselves and I do great work. So what was in your mind that you decided I’m too expensive?
Expensive is all in the eyes of the beholder… most of the time when customers say that something “is expensive” it’s only because they have not looked into anyone else’s services in the same industry. They usually have a thought in their mind when they pick up the phone, and I guess if you exceed that, you’re considered “expensive.”
But I love the idea that someone is paying for water and then turning around and telling us we are too expensive.
The Razzor - Essential Information for Small Business » Blog Archive » Posts about Small Business Info as of Wednesday, May 20, 2009 on 20 May 2009 at 9:13 am #
[...] very good example of how the Internet is making is easier to operate a small business. Because Is this the same society that pays for water? – mannmadetime.com 05/20/2009 I don’t drink much pop…soda as some of you may call it. But when [...]
Daily News About Writing : A few links about Writing - Wednesday, 20 May 2009 05:06 on 20 May 2009 at 9:22 am #
[...] Is this the same society that pays for water? [...]
Darrell Chaisson on 20 May 2009 at 9:26 am #
GREAT Post JL…
I think it all comes down to you responding:
“Are you sure you can afford to NOT hire me or my service?”
Writer Dad on 20 May 2009 at 3:47 pm #
Awesome, Jamie. It is so true. People will spend ten bucks on a bucket of popcorn and a bottle of water at the movie theater, but quibble over quality service. I’ve had people email me what they thought they should pay after I give them a quote. Did you do that to the cashier at WalMart? Rude is rude, but at least be consistent.
Jaime Mann on 20 May 2009 at 8:56 pm #
Thanks everyone for the great comments!
Pat – you’re right. When someone balks at my rates, I walk away after giving them a referral or in some cases wishing them luck and suggesting they post the job on elance! I’ve learned if they’re going to be hagglers, I don’t want to go there.
Matt – you make an awesome point. Expensive is a relative term – very important to remember!
Darrell – yes, in most cases people can’t afford not to hire me, and often when I break down the ROI that they could see from my services it paints a very clear picture!
Writer Dad (Sean) – I am so excited that you posted a comment! But a little nervous that such an amazing talent reads my blog (no offense at all to you other people, but this guy truly is an amazing writer). I’ve also had people tell me what they thought I should charge. One was a real estate agent and he asked for a rate 25% less than what I quoted him. I asked him how he would feel if someone told him they would like him to list their house but for a quarter of his regular commission percentage.
Writer Dad on 20 May 2009 at 9:17 pm #
What did he say? That’s an awesome response, by the way.
Matt Dibble on 20 May 2009 at 10:12 pm #
Amen.
You could use that in almost any context… people at their own jobs.
Sally_K on 20 May 2009 at 10:41 pm #
Jaime – Great post! I’m thankful I had you to talk to after that latest phone call. Love this: “Why is it, then, that people feel they can haggle with a service provider like they’re at a trading post or a yard sale?”
Tina Hilton on 21 May 2009 at 9:36 am #
Jaime, thank you so much for this post. I ‘tweeted’ yesterday when I stumbled across a freelance want ad looking for a skilled virtual assistant but only wanted to pay what equaled to $2 an hour. If you paid $2.25 for that bottle of water, this person wanted someone to handle their precious business tasks for less than the cost of a bottle of water! As I said yesterday, do they not believe that their business is worth more than that?
Darcie on 22 Apr 2010 at 10:16 pm #
The A B C’s of Business.
You have the A clients;
50-80% of your business and 10-30% of your aggravation.
The B clients;
20-40% of your business and 30-50% of your aggravation.
The C clients;
Your business and life are both improved when you refer the C clients to a competitor where they can be 10-20% of their business and 50%-80% of their aggravation!
Look at your client list, rate them and do yourself a big favour. Free yourself up to concentrate on your A list and spend some time upgrading the B list.