Others may try to decide for you what you should do and how you should do it. Whether innocently or intentionally, they may try to put you into a box of their own expectations, regardless of your best interests. Pressure to conform to these expectations may come from employers, customers, colleagues or friends.
I have had clients who wanted me to work in their office or change my pricing because it was easier or more convenient for them. I am always willing to assert my preferences while clearly and reasonably proving my value to them. Maybe you get an offer that is significantly lower than what you are worth.
You feel pressure to accept the offer even though you know you are worth more. If your market value is high, you will have enough leverage to negotiate your preferred terms or continue looking for alternate opportunities.
Once upon a time there was a beautiful ship with a broken down engine. None of the owners or their mechanics could fix the ship, try as they might. Finally, they brought in an old man who carried a small tool bag. He looked the engine over carefully, from top to bottom. Then he reached into his bag, pulled out a little hammer, and gently tapped something. The engine roared
to life!But when the bill for ten thousand dollars came, the owners were incensed. The old man had hardly done anything. So they wrote the old man a note saying, “Please send us an itemized bill.” The man sent a bill that read: “Tapping with a hammer: $2. Knowing where to tap: $9998.” —Islamic Legend
As you gain value and leverage in the marketplace, you will have a greater ability to negotiate the level of your compensation. Like the old man, you will be able to base your pricing on the impact of your contribution. Start by identifying your unique contribution. For example, if you are good at closing deals, you will increase their revenue.
If you are good at hiring and managing people, you will keep morale and productivity high. Then be courageous enough to ask for what you are worth and get compensated well for the value you offer. The profitability of annual salaries can be misleading because salaries alone fail to account for the quantity of hours required to earn them. Many people who thought they were making good money are shocked when they calculate their actual hourly wage.
Kimberly was making about $150,000 annually working seventy hours per week; her hourly rate was about forty-two dollars per hour. She began adjusting how and where she worked, and managing her time and travel better until she was working fewer hours while keeping her earnings steady.
By reducing her weekly hours to around forty, she raised her hourly rate to seventy-five dollars per hour, nearly doubling her hourly earnings.
How can you maximize your income per hour? Here are some ideas:
- Do not undervalue or undercharge for your level of expertise; keep your rates high, commensurate with your market value.
- Improve your delivery of services so that there is no wasted time, i.e. work from home instead of in the office, travel only when necessary, minimize meeting time, etc.
- Hire others to relieve you of easier work, like administrative tasks, preparation and set-up tasks, etc.
- Add more clients to increase overall cash flow.
- Make sure your time is focused on activities that are aligned with your personal and professional goals.
If you are currently paid by salary, make sure to quantify how much you actually earn per hour. Then find ways to maximize your hourly wage so that you can better meet your goals.
