How do you know what to price yourself when starting your business? I would say it is best to start out with a number you feel somewhat comfortable with so you can focus on gaining confidence in your skills and not worry about whether or not your charging to much. I would say this. In fact, this is what I said to my daughter on the 4th of July. This was the look she gave me.
Pascaline and Blaze had a Lemonade Stand for their second 4th of July.
Our house is in this great location because about five blocks away is the waterfront where a HUGE festival happens on the 4th. So every year, we have people walking by our house as they make their way to the waterfront.
Pascaline wanted to talk about what to charge per glass of Lemonade. She wanted to charge $1-$2 per glass. I was thinking that was a little to high and 25 cents sounded more reasonable. She was frustrated with me because she felt like it would take FOREVER to make money at 25 cents per cup. “Why not just charge more and then we’ll make more $ faster?” she asked.
I told her about starting your business at a reasonable price, then building your confidence up, and even being prepared in case not everyone wants to buy lemonade. (Although, it is almost impossible to say no to these two! Can you hear them yelling “Come get your Lemonade!”)
So we set up our table at the same time a parking spot opens up in front of our house. This guy in a beat up truck pulls up and says “I’m going to grab this spot and then buy myself a glass of lemonade from the kids!!!” YEAH, the first customer of the day!
Blaze pours the guy a glass of lemonade. This guy is probably in his mid twenties. Did I mention his truck was totally beat up? The kids tell him the lemonade is 25 cents. The guys says okay and hands Blaze a $100 BILL then says “keep the change”!!
Okay, the mom in me steps in and says “You can’t give this much money to the kids. For one thing, I can’t break it. And two, this is way too much money.” He has the widest smile ever and says, “But I want to! It makes me happy to give to em.”
I step in again and say, “But the kids aren’t even old enough to really know how much this is. They can’t fully appreciate someone giving them a $100 bill because five $1’s looks like more money.”
I hand the $100 bill back to him. He hands it back to me and says “It’s okay if they don’t understand how much it is. It just makes me happy to give to them.” Then with a big smile he thanks the kids and walks off.
I’m in utter shock. Can you imagine what comes next?
Pascaline walks up to me and says “Mom, I told you we could charge more for the lemonade.”
What do you say to that? π
The guy’s words mull around in my head for the rest of the day. “It’s okay if they don’t understand how much it is. It just makes me happy to give to them.”
Can I go a little deeper for a second?
Sometimes I struggle with feeling worthy. When something is handed to me that is so clearly a gift, I struggle to receive it. Whether God is giving me this gift or a loved one–I can struggle.
I have this urge to try and make it up to the Giver. Sounds silly but true. I try to do “things” to let the Giver know how thankful I am, how much I appreciate all He gives, how much I see the degree to what He’s given.
This guy on the 4th of July…his act of kindness was totally pure. I really do believe he meant it when he said it gave him joy to give to the kids.
I’m all of a sudden wondering if all my efforts to let the Giver know how thankful I am have caused me to sometimes miss the other side. The Giver(s) receives joy from just giving to me. And sometimes that is enough for Him.
Just thoughts…I have a feeling I’ll be mulling this experience over for a while. It was to extraordinary to forget about.
As far as how to price your services, you read above what I think. BUT, if you were asking Pascaline…she’d say “Go high and expect the unexpected.”
Can you blame her? π
p.s. I posted a blog yesterday afternoon on Photography Tips for Taking Pictures When It’s Dark Outside. Just in case you missed it…
amen!
as far as photography goes, i feel like i need to be able to charge a certain amount, otherwise it won’t be worth it for me to be away from my family doing shoots/working on the computer. so i feel like have to get good enough first to be able to ask the price i’d like to ask. since i’m not planning on starting my business for a couple of years (want to have a second baby first), that gives me the time to practice, get a few lenses and some software (painfully slow in coming), and get “good enough.”
What a sweet story. Not sure it really relates to pricing. It could have been the 25 cent lemonade that inspired the guy, or just the site of kids working, or maybe the fact that he got a parking spot near the fireworks!
Anyway, I smiled all the way through.You just never know, and it is a gift. Meanwhile you’re right, 5 ones look like way more money to kids, but if they get $50 $10 each for a toy for x amount of weeks, or they see how many toys $100 can buy, or how many BIG toys they can get for that, they might get it! :-). We do sticker charts for rewards and toys, 100 stickers is a lot of stickers with a lot of buying power!
Great story! thanks Me Ra
Thanks for posting this! I struggle with what to charge every single job I get, caught between underselling myself and overcharging. It’s a common plight for photographers and artists alike! One thing I’m always reminded of by friends and family is that I take my eye for composition and color for granted… not everyone has that ability, and that’s why they’re paying US to do it!
I love the portrait of Pascaline’s Doubting.
Have fun deciding on how to spend a surprise $100!
wow….huh…..so much to say.
I often tell sharon to just say thank you. that’s the toughest sometimes. it’s odd because it’s not a lack of thankfulness that drives that emotion, but rather a lack of “worthship” (i know, i know…) like you said, which is also correct, because in fact we’re not really worthy, but i think this leads us more to who is giving the gift instead of what is being given. that’s what creates the real value of the gift i think. the giver. you think? great post….you know i love this kind of stuff….take care.
Holy cow batman! $100 can buy all kinds of hero’s an a few pretty dresses! That’s amazing! I would love to know more about that man! Like is he single hahaha I kid I kid but seriously what a kind and giving soul. Great lesson for the kids!
I can really relate to that urge to make it up to the giver. I so want everyone to know how much I appreciate whatever they give me wether it’s a physical gift, a kind word or just anything that touches my heart! I always try to pay it forward some how!
I have checked in on your blog for about a year now, but had never left a comment. I am just getting into photography, and hopefully with alot of work, prayer, help from other photographers, I will one day have my own photography business! Your story is so motivating, warm, encouraging! Still trying to figure out the best way to learn about taking photos and learning all the cool features on my camera (Canon 40d), but I WILL! Oh, and your kids are gorgeous (I have 3 and 1 grandson)! Quite the entrepreneurs! I have a feeling that Mr. Truck man was suppose to be there, at that moment, at that lemonade stand!
Take care,
Dawn Beirnes
wow – I actually have really strong opinions on that… you don’t give that much money to someone elses kids (Anyone ever see spanglish????). Five dollars probably would have thrilled them and accomplished the same thing as $100 without [possibly]disrupting parenting.
Regardless, if I was a kid and that happened to me, I’d be bouncing off the walls! Unexpected story and really good post – I’m done with my rant! π
What a great story, I totally spit my drink all over the keyboard when I read Pascaline’s comment, “Mom, I told you we could charge more for the lemonade.” GREAT moment!
I’m such a giver, I take such joy in finding ways to give things to other people, so I can totally relate to the man’s comment about how it makes him happy to give such a big tip to your kids! (Only…I don’t have the resources to drop $100 bills here and there.) Did you leave a thank you note under his windshield wiper? π
My husband does a lot of car maintenance for people and he doesn’t charge them very much for it (just parts and a little extra for labor), and it constantly amazes us how often people will over-pay him by hundreds. He doesn’t do it for the big tips, he does it because he knows these people can’t afford to pay the horrible prices at repair shops.
I keep trying to start my photography business by offering free sessions so I can build my portfolio. Every single appointment I’ve set has needed to reschedule and I still haven’t done any of them yet. It’s frustrating because I really want to get started… and once I *do* start, how in the world do I decide what kind of pricing to charge? Thank goodness for Chicago! I’m saving up my pennies to go to the add-on business day. π
omg Me Ra! I LOVED this! What a story.
Sometimes you just have to take an experience for what it is. I think you handled it very well and it shows the depth of your character that you go back in your head, and replay what happened and learn from the whole experience.
PS: I love how the sign says “LEMONAD” π
I LOVE this post Me Ra! I truly look forward to meeting “you kindred spirit.” We are forever indebted to the Giver, aren’t we. It’s so cool how He brings people and experiences into our life to teach us and to grow us. I’m glad you are blessed with faith, a beautiful family, and so much more. Blessings!
Hey Me Ra, thanks for this. What a great reminder and the timing is so perfect because I am struggling with the pricing issue myself right now.
What a beautiful gesture and great learning opportunity for your kids. They can choose to keep the money and be proud of their hard work and initiative, split it and spend it, spend some and save/invest the rest or they can follow in the giver’s example and keep some for themselves and then give some to someone who would greatly appreciate it. All are appropriate lessons and I am certain they would each make the giver proud.
I once quietly received a $100 tip on a $13.00 bill while serving brunch in a restaurant and I will never forget the gratitude I felt on that day.
I too suffer from wanting to “do more” to ensure that the giver is well taken care of but I think sometimes the manner in which we “pay it forward” is the greatest payback of all!
Mera,
What a timely post for me. I am struggling with pricing and also have trouble feeling worthy. I always give my clients the best I can but worry they don’t see the value. Sometimes I am surprised when the print orders roll in. Thank you for sharing this story. I think I will be mulling over for a while.
Jennifer
Me Ra I love this blog. I have been struggling with pricing since I am just starting out. Because I am a newbie, my insecurity get is the way but also my ability to take compliments or see worth in my skills. To think that some one wants to pay for my pictures is a hard adjustment to make. I am so much more comfortable as the giver of gifts than the receiver.
I am over critical of my work and so pricing it becomes difficult. Recently I did a shoot for a girl at work of her daughters. I was so nervous I didn’t charge her for the sitting fee and only charged her for the prints. I was so stressed about the fact that I was charging her at all and she didn’t even blink an eye about paying. She was just so excited about the pics and couldn’t decide what to purchase, that she may get them all. π
Giving is much easier, but receiving is nice sometimes too.
I love that this guy would buy a $100 glass of lemonade. Sure the kiddies may not get how much that really is, but it shows them that there are good people out there and giving just because is a wonderful thing. I am rambling, but it makes me think of the phrase “pay it forward”; you give so much Me Re this was your turn through your kids to receive, and maybe its not just about the money. If any of that makes sense.
Me Ra,
I know you don’t know me…but I feel like your my best friend – whenever I talk about you to my husband I say “you know, my best friend who doesnt know me!”
Aside from pricing – you spoke my mind. I have ALWAYS had a dificult time accepting a gift – in anyway. My husband will tell me I’m pretty, and I’ll brush it off and say “no…I’m fat…” He’s constantly telling me to just say thank you – that’s it.
You have been such a blessing to me in my professional life – and now in my personal life. I value my “time” with you everyday π
Thank you for being you, and sharing with strangers the gift God has so wonderfully given you!
I really hope to meet you some day soon!
This brought me to tears…sometimes I forget how much joy it brings me to give to others. Often I rob that blessing from the Giver by me being too proud to receive. This hit home Me Ra. Thank you so much for sharing this…what have the kiddos decided to do with their earnings???
Ha! I’ve been reading through these comments throughout the day and have realized that I am the total black sheep on this subject! *Shrugs*
Thank you, MeRa for your comment – it made my year! I was so stunned, I ran up to my husband and said “GUESS WHO LEFT A COMMENT ON MY BLOG?” Without skipping a beat he answered, “MERA KOH????” “YES!” I shouted back loud enough to wake up the baby. π
Me Ra,
Your post warms my heart … thank you. Thank you so very much for sharing it.
WOW!!! That is one $100 bill that they will always remember! That is amazing! That is one of the stories they will be talking about long after they are grown up and have kids of their own!!!
MeRa,
Your girl is one savvy entrepreneur, wonder where she gets it??? LOL
Great story!!!!! Looking forward to the next meeting.
Dinea
This totally brings tears to my eyes because I love this man. I love what he did, I love that he is a giver when so many in life are takers.
Please make sure this story is stored with the pictures of the lemonade stand, it is a deep deep lesson for all of us…givers and receivers.
Valerie
Thanks so much for the encouragement. I think I react the same way with trying to “repay” the Giver, and totally forget that His satisfaction is enough. What a great reminder and always at the perfect moment.
Ashley
I totally agree with your point of view.
I believe that until you get confidence and really know your market, you should make your prices more affordable. Whenever you feel that your consumers like your work and that you have enough experience, than it is time to bring your prices up to the level of your work.
If what you do is special, unique or very good in anyway… You should charge for that.
Paulo Jordao
Me Ra,
This post resonated with me deeply. We never feel worthy of accepting such a gift because we see all the faults as unworthiness, but He knows our frame and loves us despite them.
It has happened on more than one occasion that I have been real ugly in some way and then been totally blessed right after. It is a very humbling experience. Thanks for this beautiful post! Your faith is encouraging.