“What would you do to earn more?”
- Women: Put in more hours
- Men: Increase my rate
This question was asked to a group of medical doctors. If you read the answers, you might want to laugh at first hand, but in reality its not something to laugh about. We, women, still have a long way to go to achieve financial parity with men, wether its surpassing 77 cents on the dollar or earning six-figure salaries as CEOs. Today the average revenues of women-owned businesses are still just 27 percent of the average revenues of men-owned businesses.
You can learn to negotiate!
Research is showing that women in comparison to men don’t negotiate as well if they negotiate for themselves. Reasons vary from wanting to keep the good relationship to wanting to prove themselves before asking for a raise.
Luckily, we can do something about this, because you can learn to negotiate what you want!
During my workshops Successful Negotiation I sense that entrepreneurs/freelancers don’t exactly know what they can ask for a certain project.
For delivering a service its important to think about your minimum hourly rate. This minimum hourly rate is the sum of the amount you want to earn plus the operational costs, divided by the amount of hours you can write to your client.
Do you want to earn more than your base rate or are you delivering a product? One of the most important things is research! Research the market value, industry standards, experience and precedents of your service or product. Objective criteria are not influenced by the opinion of parties, so you can’t disagree about these facts.
Besides the objective criteria its important to know how much value your sevice or product contains.
A value proposition is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service!
The provided value will result in the solution of a problem the customer is facing.
Small recap: the goal of a good value proposition is to match the product or service to the customers demand (problems).
Say no effectively, BATNA (plan B) and bottom price
The last step is to know what your bottom price is. The bottom price could be your base rate, but you can also decide to add 10-15% on top of your base rate (think about the value you’re adding)
In addition its important to know your BATNA: “Best Alternative To a Negotiated Agreement”, your plan B. What will you do when your cusmer wants to pay less than your bottom rate? Will you not close de deal and work with another client? Or do you suggest the client to do pay 100% in advance for a 10% discount?
Research showed that people who have a clear bottom price and a strong plan B, will reach the wanted result compared to people who only have one option.
Know what you’re worth, think in solutions, know when to say no and always negotiate!