Money is a financial side effect of impact

May 24, 2023 | Insights

Money is a side effect of the impact you make, so focus on making a consistent and effective difference, and the money will follow.
Have you been underwhelmed by the money you had to pay for a service you bought? It happened to me last week. After years of running, my feet were the worse for wear. Our local chiropodist spent ninety minutes expertly repairing the damage and then charged me only £30. Given the time she spent and the quality of the work, I had expected a fee of at least three times that amount.

Conversely, a new restaurant nearby has opened with an uninspiring taster menu costing £85 a head. I haven’t been there yet, and probably won’t.

So, here is another perennial question about money. What is a fair price for a service? The question applies whether you are buying or selling. It’s easier when you are buying. If the price asked does not match the value provided, you can walk away.

Don’t undervalue yourself!

But what if, say, after the kids leave home, you decide you no longer want to be part of the system and set up your own business? Then, you have that difficult decision about what to charge. Too little and you undervalue yourself; too much and the punters will exercise their choice not to buy.

Here are some suggestions. First, find a price point where neither side feels resentful. As a service provider, you won’t feel sore at the amount of work you put in for your client at the fee they are paying. Likewise, your clients will not resent paying over the odds for a service that does not meet expectations.

You probably know about paying peanuts and getting monkeys. But, unfortunately, the converse is also true. Yes, you need to trim your service to keep the price down. However, a trimmed-down service may be different from what your clients want. And, as a business owner, charging too little will make you feel undervalued.

Third, focus on making a positive difference and let the money sort itself out. Scott Aaron, a marketing expert, puts it well when he says, “Money is a side effect of the good work you do for other people.” In other words, focus first on making a consistent and effective difference, and the money will follow.

Don’t let money maths crowd out your money maturity.

Yes, the mathematics of money applies. As a business owner, your income needs to exceed your expenditure. However, your money maturity also plays a significant role. If you listen to those who urge you to reduce your prices to get more punters, you will likely feel resentful and cheap.

Conversely, take time to understand the value you are providing, the motivations of your clients and the emotional role of money in your and your client’s lives. Then you will be well-placed to build a successful and impactful business.I hope my chiropodist will realise how much of an impact she has on her clients and increase her prices shortly, or she will get resentful and feel undervalued, disillusioned and quit, which would be a shame.

Photo attribution

Photo by Jan Romero on Unsplash

Audio link

https://audio.com/jeremy_deedes/financial-side-effect

Other references:

Aaron, Scott. The Linked-in Book for Network Marketing. Independently Published, 6 Feb. 2019.

Taking it further

Visit Scott Aaron at https://scottaaron.net/

Related posts:

The perils of financial immaturity

https://wordsnotdeeds.co.uk/financial-immaturity/

Financial immaturity makes money your master, not your servant, making it hard to use for the benefit of others or your spiritual growth.

Right Money, Right Place, Right Time
https://wordsnotdeeds.co.uk/rmrprt/
Personal finance is more than just investment returns

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