You Better Know What You are Worth!

Pause for a moment and ask yourself a question:

What exactly is an hour of my time worth?

It is a query that often elicits hesitation, a momentary pause to contemplate. If a client were to inquire about the cost of your creativity, counsel, or consulting, what figure would you attach? For many, including myself, this question poses a considerable challenge. Yet, to elevate your business and elevate your standard of professionalism, you must have an answer. Admittedly, it is uncomfortable territory for some. Some perceive it as boastful or self-serving. In the seminars I conduct, I have posed this question: "What would you charge for one hour of your consulting time?" Shockingly, responses have ranged as low as ten dollars an hour. Determining your hourly value offers invaluable insight into whether your business is truly profitable. The conclusion you reach is pivotal.

Reflect on your last five sales orders. Were they profitable? Are you certain? Consider the time invested in each client to secure those sales. The next time you acquire a new client, assess the total time expended to close the deal. Account for every facet: research, phone calls, follow-ups, sample deliveries, meetings. Was it truly profitable? For instance, if you secured a ten-thousand-dollar order with a 50% profit margin, totaling $5,000, yet you value your time at $200 per hour and invested 50 hours—equating to $10,000—then the equation does not balance. Yet, the excuse of achieving an "A" grade on effort falls short when the financial reality sets in.

Many fail to consider the entirety of their working hours when assessing their personal hourly value. Think back to the weekends worked, the late nights glued to the TV screen, the sacrificed holidays, and early mornings spent laboring. Do these hours count? The truth is many of us lose track of our working hours due to ingrained habits. Statements like "I'm doing it on my time" or "it's my weekend" are commonplace. Yet, while the time is indeed ours, once spent, it is irretrievable. Therefore, it must be considered.

So, why all the numerical analysis and debate surrounding hourly value? What does it signify, and who should care? The answer is simple: you should. When was the last time you invoiced a client for your time, your creativity? Some may answer "often" or "occasionally," but for the majority, the response might be "never." Yet, agencies do it routinely. They recognize that billable hours are their most precious asset. So, what sets them apart from you? Perception. They project themselves as entities deserving of compensation for their time. Why not you? Do you not contribute to clients' success through crafting taglines, conducting research, designing packaging, or implementing projects? These are the very tasks agencies undertake, safeguarding their ideas and billing for every aspect of their services.

Years ago, a close friend prompted me to contemplate my hourly value. I was clueless. After introspection, I realized I was earning as much as a burger flipper at the local diner—albeit with greater stress. It was a wake-up call, albeit a valuable one. I acknowledged my worth and resolved to be compensated accordingly. Expressing my value and delivering on it transformed my business trajectory. Clients perceived me differently, recognizing the value I brought, and began compensating accordingly. Understanding my worth guided my project selection, distinguishing between profitable ventures and those destined for mere excuses like "this isn't a big order, but they'll get bigger."

Continuously evaluate your business model. What works for one may not work for another. Yet, always strive for improvement. Your personal and professional perception should reflect the value you bring to client relationships. Whether it is $87.50 or $200 per hour, there must be a tangible value assigned. Each educational workshop attended, consultant met, or trade magazine read enhances your value. Armed with this knowledge, you become an invaluable asset to clients, capable of guiding them towards success. Articulate your value; if you do not, clients will not grasp it. It does not always entail stating a specific hourly rate; actions and results speak volumes. Share new ideas, technologies, and concepts, illustrating how they benefit clients.

I emphasize this belief: each of you is worth more than you credit yourselves. Yet, many succumb to complacency and fear at the prospect of being compensated for time and creativity. You can. Time is your most precious commodity; once spent, it is gone. There is no bank for time.

Take the time to assess your worth. Implement exercises for your sales staff, empowering them to grow their book of business and ensure longevity and profitability. They are worth it. You are worth it.

As always, continued good selling. CQ