Pay rates! One of the biggest headaches. One of the biggest questions or conversations I have been seeing throughout the web is one, finding your rate to charge and two, talks about how there is always someone cheaper and someone more expensive.
In this article, I would like to cover these arguments and my own thoughts for this debate. If you need help pricing yourself further, please see the Build a Business eCourse!
Finding Your Rate
Finding your rate can be difficult. You want to be among the market, but you don’t want to sell yourself short.
My biggest advice? Find the amount of your expenses per month and then figure out how you can cover your expenses plus some, need some savings.
This is your bottom line. Period. You need to live. You need to cover your expenses. So why take a job that won’t lead you there?
Pay Rates: Philippines versus America
I am using the Philippines as a fill in for all lower cost of living countries/places and America as a fill in for all higher cost of living. This debate can be between New York City versus Idaho Falls, Idaho or France versus Peru.
This debate usually involves workers in the Philippines. The Philippines has a lower cost of living. One US dollar goes a lot further than in America. This being said they can work for a lot less than Americans.
This pay rate debate has come to these conclusions:
- They should be paid based on their pay rate (so if it is lower then it is lower)
- They should be paid by American clients with an American’s typical pay
- Anyone living in the Philippines/lower costs should only charge lower prices
Personally, I am a strong advocate for charging what you think you are worth. If you live in the Philippines and think you are worth $100 US dollars an hour- do it! Everyone has some special skill that makes them standout and deserves better pay.
If you believe someone who lives in the Philippines should only charge $5, well you are in luck, there are a lot of Filipinos who charge that.
If you are a virtual assistant in America and charge $40 US dollars an hour and a client tells you they rather go with a Filipino because they are charging $5. Don’t take it harshly. It isn’t because you are too expensive, because guaranteed there is someone who is charging $70 for the same job.
If the potential client is more concerned with the price, then that’s it. There is nothing you can do.
Know Your Target Market
This relates to knowing your target market. Who is your target market? Are you targeting budget minded entrepreneurs who are looking for cheaper options? Are you looking for clients that want a worker that is specialized and have the skills?
One of my clients specifically targets very wealthy clients. They actually like that she charges a lot! So, her pricing not only covers her expenses, showcases her skills, but also aligns with what her target market is looking for. She set her pay rates to cover all of this.
This being said, Filipinos have skills as well, and as I mentioned, personally, they should charge what they think they deserve- if that is $40 an hour or not. Do it!
What To Do with Pay Rates
When facing this possibility, remember, there is always someone cheaper than you. There is always going to be someone who has more experience. That is just how it works.
The key is to be confident in what you do, sell, and your price you set. You set that price for a reason- because you need it to live. You have already worked out all the details, or at least you should.
If you are looking for more pricing help, check out Build a Business eCourse. Once you gain confidence in your own pricing, when a potential client rejects you due to your pricing, it isn’t a reflection on you.
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