When people get known each other, naturally they ask what the other is doing. For a business owner, it can be a great opportunity to advertise his or her business.
But when the conversation starts in a private social gathering, things can be a bit more awkward.
Some people who think they can use your help get more interested in your professional expertise than just a casual curiosity. They ask health related questions to a doctor and financial ones to an accountant. A shoe store owner gets footwear related questions and a cooking instructor gets food related.
From there, sometimes people ask your price for the service and/or products. This is how a business is promoted. You provide the information for the potential customer and she will decide if she wants to go farther or not.
However, some people ask for your help without mentioning anything about the cost. I do not say they are intentionally doing it, but anyway it commonly happens. When you realize he is expecting your help, you start calculating your time and cost in your head. Then questions come up; is he ready to pay for it? Am I supposed to charge full amount? Will he be offended if I charge my friend?
Since I started my specialty food making workshop business, I have faced such a situation several times. Each time I chose to ask for some money as the fee whenever it is related to my expertise.
If you always try to help others as much as possible, charging someone you know personally to make money or even just to cover the cost may be difficult. But you should.
You don’t need to stop being a helpful person, but you are a business manager. You want to build your business in a healthy way.
When you charge some money for your service/product, you come to a few questions.
Is my offer really valuable that much?
This is a great marketing tool. You offer. A customer chooses to take it or not. Through this experience, you really see your market value.
Does this potential customer appreciate my value or is he just looking for a bargain?
If he appreciates your offer, he will pay happily. If not, he will go away.
Do not take it personal. Customers have their own choice and so do you.
What kind of customers do you want?
Do you want to please bargain shoppers with lower to no charge? Or do you want to deal with those who see your value and appreciate it?
When customer is not happy with your price, it doesn’t necessarily mean she is a bargain shopper. If she truly cares about you and your business, she may give you an advice to adjust the price to match your market value. It may be difficult to listen to such a thing but it is her tough love.
The basic business theory – people don’t pay for what they don’t want. No matter how much you think you are worth for such, if nobody else thinks so, you won’t win. No matter how much it costs to you, it is your problem, not the customer’s. If someone else can provide the same thing with lower cost, hence lower end price, a customer will choose the cheaper one. Instead of blaming the customer, work on your own products and services.
Another thing that is easier to be said than done. I am consistently working on this pricing issue.
And the only way to see is by trying. When I asked for the fee for teaching food making, I realized many people took it reasonable and they appreciated my service. Thanks to them, I have been gaining more confidence of my market value.
Customers are great teachers after all.