The Value Versus Price Tag Strategy For Measuring Value And Time – Kimberly Gosney
It’s almost time for the holiday season. This time of the year is ripe with anticipation of what 2016 is going to look like for every entrepreneur.
You’re going to start looking at your past and thinking about your future.
Today, I want to get inside your head for a few minutes and stir something up. There’s something that we just don’t talk about enough. The value of something versus the price tag you pay for it. This strategy can be applied to anything and everything purchase wise in your business from your courses, systems, hiring and even if you should buy that new course everyone is talking about.
I’ve been digging into this heavily in 2015 and I’d like to take a moment to share a strategy with you as you look towards 2016 and where and what you’ll be investing in for your business this year.
This is a really simple strategy designed to help you take action quickly and without over-thinking it and since we’re going to be talking about two of the most important assets you have – your time and money – know that this may bring stuff up for you that’s been hiding under the covers.
And, that’s OK.
It’s best to start the year with freshly laundered time and money covers and maybe a really squishy perfect pillow.
Here we go!
This strategy starts with:
I identify your value as dollar amount you place on an hour of your time. Your Value is 100% unique to you and it’s just a measure to keep you grounded. If you have no idea where to start think about it like this … if someone asked you to meet with them 1-on-1 to help them with something you knew you could help them with and they wanted to pay you for it that dollar amount is Your Value.
I’m going to use $100 here in this post as the example of Your Value to keep it easy because I don’t have a calculator handy and my math skills are rather icky.
Your Value = $100/hour.
The Price Tag.
The price tag is something that someone else is asking you to pay for something that you think you want or need in your empire. This could be a new site design, a photo shoot, branding, a course or mastermind you’re thinking of buying.
The Price Tag takes your money away from you.
Greedy little sucker.
Now think about a space that is always causing you a problem in your business. In this example I’m going to use your website because your website is a greedy little sucker sometimes. It can and will suck the life out of you if you let it and I love talking about your website making you happy not sad.
But, let’s say your website is something you’re planning on spending money on in 2016.
The site designer you’re thinking of working with wants to charge you $3000 to build your website.
Let’s get in here and look at the value versus the price tag of this situation.
Your Value = $100
Price Tag = $3000
How do you know if you should hire this designer to build your site or if you should suck it up and build it yourself?!?
Great question. I’m so glad you asked it.
Here’s the easiest way to decide.
Ask your potential site designer to see examples of the last few sites they’ve built or that will be launching soon. Then ask yourself honestly …
Can you do this as well as or better than this designer can in the price tag divided by your value (in this example) 3000 divided by 100 = 30 hours?
If the answer is yes you know you can DIY your website and it would look just as great in 30 hours or less – DIY it.
If the answer is heck no, there’s no way you’d get the same-ish results in 30 hours – hire the designer to build your website.
Now I know that you might get here and think … I see the value, but I don’t have enough money for the price tag. My money just isn’t there and I’m not going to wake up to $3000 tomorrow morning.
If that’s the case, set up a time to chat with your potential site designer and ask them if you can lay-away your site design project.
Most site designers, including me are happy to work out a payment plan for your site design project where you talk about what you want, they write you a contract, you pay a small site design deposit to hold your place, and you send over payments until you’ve paid on what’s agreed to for getting the ball rolling on your site.
You get your website and you’re off to being able to sell your products, services and offerings without breaking a sweat or spending hundreds if not thousands of hours struggling with your website with nothing to show for it.
P.S. I’ve got one spot remaining for Cupcake Website in January 2016 and I hope it’s got your name written all over it. Click here to take a peek at Cupcake Website, fill out a form, and grab a spot to chat with me about your website.