It takes a lot of confidence to start working for yourself, many self-employed people find it difficult to set their fees high enough. In Lucy’s case, it was a lack of self-esteem an perspective that was holding her back…

Lucy’s throat started flushing – a clear indicator that she wasn’t comfortable answering my questions. And if I could make her ill at ease – when she had come to me for help – then it was clear that her prospective clients would soon sense her discomfort too, and decline to hire her services.

Lucy had more than 15 years experience as a beauty therapist under her belt – and her previous employer had given her a glowing reference. Lucy loved her work – and because of the time freedom it would give her, she’d decided to become self-employed after giving birth to her son Max.

While Lucy knew she was a great beautician, she’d also come to recognise that she wasn’t very good at sales – particularly when it came to selling her own services.

Having taken advice on how to produce the appropriate promotional literature, Lucy had optimistically thought that all she needed to do to get her business going was send out her sales letter and brochure – and then sit at her desk waiting for the phone to ring.

Quickly, she’d learned that there was more to promoting her business than she’d realised. However, before embarking on any sales plan, we first needed to work on Lucy, who needed to change her perception of herself.

When she’d been employed Lucy had been charged out at a professional rate – which was particularly appropriate as the salon mainly catered for professional women who expected to pay over the odds for quality service. However, Lucy herself had been paid a very poor hourly rate, which had in turn made her undervalue herself.

If Lucy was going to the respect of the accountants and lawyers with whom she wished to work, then she was going to have to elevate her prices accordingly. Her clients expected to pay comparatively high prices – believing that it elevated their own status!

“It is all a matter of perception”, I told Lucy. Holding up my leather handbag, I asked her to write down on a scrap of paper how much she thought I’d paid for it. “£200,” she wrote. “And if I tell you that I bought the handbag at Selfridges - how much do you think I paid for it?” Quickly, she scribbled “£325”. - “Now imagine my handbag on a table packed with bric-a-brac at a car boot sale. How much do you think my bag cost?” As Lucy wrote her response of “£3”, she began to smile, recognising that the handbag was the same – only her perception had changed.

Know that your business is a reflection of you – so make sure you’re “right” first! Understand your target market and set your fees accordingly. Recognise that if you undervalue yourself, your clients will undervalue you too. Believe that sometimes people enjoy paying more, believing that they’re part of an elite group! Remember that very often, your charging policy comes down to perception.