# How To Pick Your Price

[^note]:
    Recommended reading:
    [Company of One](https://www.amazon.com/Company-One-Staying-Small-Business-ebook/dp/B078962RHQ/ref=sr_1_1),
    [100 Blocks a Day](https://waitbutwhy.com/2016/10/100-blocks-day.html),
    [10 Minutes is 1% of Your Day](https://taylor.town/10-minutes),
    [What is your time really worth to you?](https://programs.clearerthinking.org/what_is_your_time_really_worth_to_you.html)

Most people live fewer than 25,000 days. What are your hours worth?

There are three conflicting ways to appraise time. All are worthwhile:

1. Your hours are worth whatever you decide they are.
2. Your hours are worth whatever the market pays for them.
3. Your hours are priceless.

### Your hours are worth whatever you decide they are.

Never resent your clients. Don't blame customers for being cheap. Take
responsibility for your minimum rates. _You_ decide what you are worth.

Always choose a minimum rate that prevents resentment. If you aren't _excited_
to acquire customers, you aren't charging enough.

### Your hours are worth whatever the market pays for them.

[This table](https://www.bls.gov/oes/current/oes_nat.htm#15-0000) lists wage
statistics for 140 million occupations.
[Everybody thinks they're better-than-average.](https://en.wikipedia.org/wiki/Illusory_superiority)
Expect to make median (not mean) wages. Most people work just as hard as you.

On the other hand, remember that
[consumers rely on price to determine quality of products](https://www.sciencedaily.com/releases/2019/09/190906104111.htm).
When you charge $50 for a hamburger, people assume you make $50 hamburgers.

Here is an algorithm for optimizing your rates:

1. Decide how many hours you want to work per week.
2. If you are providing services more than 80% of the time, double your rates
   for new customers.
3. If you are providing services less than 50% of the time, reduce your rates by
   10%.

If reducing your rates causes you to resent yourself or your customers, choose a
different strategy:

- go more niche
- start a parallel service
- lower your standard-of-living
- improve your skills via deliberate practice
- demonstrate your worth more clearly

### Your hours are priceless.

Money is fake.

Put your price tag on your muscles; never sell your soul.

You are more than a collection of skills.

When your heart is on the market, the pursuit of success corrupts you. Live your
values. Don't compromise quality.

---

[^note]:
    This essay is part of [How to Productize Yourself](/productize-yourself).