Women entrepreneurs continue to start businesses at levels far ahead of males. This fact should mean that women value their work and are confident that customers will pay them for the privilege of working with them. However, too often the opposite is true and women entrepreneurs undervalue their expertise. So, how does a woman entrepreneur determine her value?

The most important factor in pricing your product or service is to know exactly what the costs are to deliver it. Now, that sounds simple and reasonable, but I've learned from years of business coaching that many entrepreneurs don't spend the time necessary to examine every expense. For example, if you are providing your service from your home you may not include the cost of rent, utilities and other basic business expenses. The problem with this is that as you grow you may decide to venture into leasing space and your expenses will escalate. You can't raise your prices just because you haven't factored in growth. This scenario happens most often with startups. The trick is to plan your business with the big picture in mind and prepare for growth at the beginning. The old adage if you can see it you can achieve it works as long as your plan takes all future expenses into consideration at the get-go.

My biggest concern for women entrepreneurs is that they fear raising their rates/fees. I have this conversation at least monthly with a current or prospective client. The conversation usually goes something like this:

(SHE): Vicki, I'd like to raise my rates but I don't think my customers will like it.

(ME): Of course they won't LIKE it but they will understand it. Customers understand that costs go up. They buy groceries, pay rent or a mortgage, purchase clothes and eat out. Customers know that prices go up from time to time and that it is part of doing business. If your prices don't ever go up, your customer may believe that you are scrimping somewhere else that may jeopardize their health or wellbeing. Think about it!

(SHE): But, how do I raise my prices without losing customers?

(ME): You simply present the need for a price increase at a given date and let your customer know how much you appreciate his/her business. If necessary, for those very special, long-term, loyal, can't live without 'em customer, suggest that you will grandfather their price for a given amount of time so that the change won't immediately affect their budget. But, remind them that the rise in cost is out of your control and that eventually it must be accepted. 

As this discussion continues I generally ask if the entrepreneur has researched what the competition is charging for similar work. Nine times out of ten, I hear she hasn't looked at it since she started the business and has no idea.

Which brings me to an important task for every entrepreneur; male or female...know who your competition is and what (s)he charges. Successful businesses are built by people who pay attention to the marketplace and understand what is driving the market in their space. As I have said, many times in this blog, if you are not building your business every day you are little by little weakening it as your customers will eventually try another vendor, move away or die. The lifeblood of every business is new customers. New customers aren't concerned that your prices are higher this year than two years ago. They want value and customer service and a confidence that you will deliver as promised.

So, start valuing the work you do and, more importantly, yourself. As a woman entrepreneur who has the confidence to build a business and deliver a product or service to the marketplace you deserved to be paid well. There is only one you and you can only be the best at what you do if you promise yourself that you will ask for the resources you need to deliver.