I see it every day: a small start-up business, a freelancer, or a small business person, trying to stick it out through a slow economy. They take any job that comes their way - no matter how big or small - and price it well below it’s worth, just to pay the bills.

Believe me, I know how tempting it is to start offering discounts and lowering your prices, especially when you’re just starting out or have hit a rough patch. I know because I did it for 5 years! And the more jobs I discounted, the more I would attract clients wanting a deal, discount or break.

The problem is, once you become known as the “Discount Dave/Diane” of your industry, the harder it is to break free from that. The best solution is, of course, to never start offering those low-ball prices in the first place, but if you look at your current situation and find that you ARE turning into “Discount Dave,” there are things you can do.

Ways to break that “Discount Dave” mold and charge what you’re worth…

• Analyze your client/customer base - is there anyone you consider dead weight? Maybe clients who’s projects just aren’t worth the money they’re paying you? Consider raising your rates to something you can live with (and know you may lose the client), or give them the name of someone who many be better suited to help them.
• Decide if you’re happy with what your “good” client/customers are paying you. If so, wonderful. If not, consider raising your rates, but give your clients plenty of notice. This will weed out any dead weight, and leave you with a group of clients who know and understand your worth, and value the service you provide for them.
• Look at who you are marketing to. If your current target audience consists of people who typically look for a deal, consider targeting a different group of people. Make a list of characteristics for your ideal client and build your marketing plan around an audience with those traits.
• Believe in yourself. You have a skill and provide a service that people need. So don’t be afraid to charge what you’re worth.
• Outside of the occasional (and well thought-out) promotional discounts and offers, never cut anyone a deal. If you feel the need to provide your services at a discounted rate, volunteer your services to a non-profit organization you feel passionate about.
• Don’t worry if you don’t get the contract, or you lose a client. All that means is there is now an opening for a new client ready to do business with you and pay what you’re worth.
• Work on marketing every day, so you have less slow periods, and will be less inclined to cut your rates just to get the job.
• And finally, check out this article about determining your base hourly rate. Design and marketing guru Neil Tortorella even includes a link to his rate calculator, available for download for less than the cost of a Triple Cuban Espresso!

Remember: You have just as much of a right to earn a living as the next guy, so when you determine your rates, stick with them. And don’t become a “Discount Dave”!