התמלול המלא של Stop Undercharging: The Simple Math That Tells You What You're Actually Worth [Ep. 30]

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WEBVTT 00:00:00.320 --> 00:00:08.480 Hola amigas, this podcast is for Latina entrepreneurs building businesses while navigating faith, culture, and yes, motherhood. 00:00:08.640 --> 00:00:15.439 We unpack how your story shapes your leadership and build real-life systems that help you grow without burning out. 00:00:15.599 --> 00:00:18.000 This is where Gozura meets strategy. 00:00:18.160 --> 00:00:19.280 So let's go. 00:00:19.679 --> 00:00:26.320 Have you ever wondered if you're charging the right price for the product or service you're providing? 00:00:26.559 --> 00:00:30.160 Because we're so afraid to overcharge. 00:00:30.399 --> 00:00:35.359 And another thing is that we're also givers, like by nature. 00:00:35.520 --> 00:00:45.359 As women, we want to give and we want to do so much, but there's something about us, especially in our culture, that we always try to do and give more, right? 00:00:45.600 --> 00:00:53.280 More value, work harder than anybody else, show up for everything, always say, Hey, I'll do this, I'll do that. 00:00:53.439 --> 00:00:55.920 And that is not a bad thing. 00:00:56.240 --> 00:01:00.079 But as a business owner, it will burn you out. 00:01:00.560 --> 00:01:09.200 It will deplete your financial ability to be able to expand, and it'll drain you from a lot of different things that you didn't even think about. 00:01:09.439 --> 00:01:18.079 So I wanted to talk to you about a simple way to start thinking about am I charging what I should be charging? 00:01:18.319 --> 00:01:25.439 Now keep in mind that this number is kind of like to give you a base of like if you're unsure what you're charging. 00:01:25.599 --> 00:01:43.040 A lot of us when we start our in our business, we start shopping around doing the market research, and or I hope you do, uh a little bit of market research and seeing what your competitors are charging, what are they offering, you're looking at the reviews, what are the maybe complaints about, or what are people really enjoying about them. 00:01:43.359 --> 00:01:48.079 And so with that, you start thinking, well, how much should I charge? 00:01:48.799 --> 00:01:55.200 These people have been in business for such a long time and I'm new, so I my price needs to be way lower. 00:01:55.760 --> 00:02:06.480 So in order to get away from that thinking, let's talk about what really involves pricing, cost, right? 00:02:06.640 --> 00:02:07.439 Let's talk about that. 00:02:07.599 --> 00:02:43.759 I'm gonna put it in the simplest ways that I can, but honestly, asking yourself as an hourly rate or even as a product or service, we have to think how much time does that service, how much time does that program takes of my time that I should be charging to feel like I am not undervaluing myself and I'm having enough money left over to pay myself, number one, and also whoever is helping me out and the cost for maintaining the business, because guess what? 00:02:43.919 --> 00:02:56.240 A lot of us do pay for systems, do pay for other external things that the client doesn't see, but it is part of the process of being able to deliver the goods, right? 00:02:56.560 --> 00:03:02.479 All right, so let's talk about number one, and there's three sections that I will touch on. 00:03:02.639 --> 00:03:07.759 And so number one is material, that's cost of goods. 00:03:08.000 --> 00:03:08.960 What's in there? 00:03:09.120 --> 00:03:16.879 What is in those materials or cost of goods is what we call it, that affects directly to your pricing, that is gonna eat up part of that. 00:03:17.120 --> 00:03:33.759 One of the things that you can think of is, for example, if you have a like a CRM system, email marketing platforms are great examples of cost of goods as well, because you use that too for your email marketing, your lead magnet, all those things. 00:03:33.840 --> 00:03:35.680 So you want to think about that. 00:03:36.319 --> 00:03:38.639 Now, the next part it's labor. 00:03:38.960 --> 00:03:58.639 So this is what it's very important for you to keep track of the hours that you use of your time to provide a product or service that you use as an employee, because at the end of the day, most of us are working in our business as an employee, but also the CEO. 00:03:58.879 --> 00:04:07.840 So keep that in mind because if you think about it, that is a two-part employee that is involved in your business. 00:04:08.080 --> 00:04:14.639 So you as an employee is the laborer, and you as a leader, as a CEO, is another one, right? 00:04:14.800 --> 00:04:16.720 So keep track of your time. 00:04:17.279 --> 00:04:21.759 I will put in the show notes a link to a time tracker that you can use. 00:04:21.920 --> 00:04:25.439 One of the things that I like to do is use a time tracker. 00:04:25.680 --> 00:04:27.920 The people that work with me use click up. 00:04:28.160 --> 00:04:34.240 There's a timer in there that they can go and use to track their hours when they're working on a certain project for one of my clients. 00:04:34.560 --> 00:04:51.600 But the way I like to do it, because I'm more of a visual, tangible type of person, that I need to have one of those Pomodoro timers or any type of timer that is I'm gonna set my time because I need to do this, it's gonna take me, it should take me 15 minutes, it should take me 30 minutes, no more than an hour. 00:04:51.839 --> 00:05:08.319 Or you can do it in sections where you can do 30 minutes first, then give yourself like a five, 10-minute break, and then you go back for another 30 minutes, and then keep tracking down what you're working on, especially when it's working on a project that you have, because that's gonna be very important. 00:05:08.879 --> 00:05:18.879 I wanna bring out something that sometimes we don't think about or we don't call out, but I want to call it out because it's very important. 00:05:19.199 --> 00:05:43.920 I've seen it with myself sometimes, and until I caught it, like really caught it and really focused on I'm not gonna be

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wasting my time in that sense, is really that wasting your time because we tend to say we're busy, but when we look in deeper, what does that busyness really look like? 00:05:44.639 --> 00:06:06.319 Because I can tell you from experience that I would say I was busy, yet I was scrolling to look for things, I was like reading things, I was wasting time going back and forth downstairs, looking at my dogs, procrastinated whether I should work out or not, or maybe should I work out later? 00:06:06.399 --> 00:06:18.079 But you know, I'll get into my workout clothes, and then maybe maybe after I pick up the kids from school, or maybe right before school, like you you see what I'm getting at, right? 00:06:18.319 --> 00:06:48.879 Like, there's a lot of wasted time, so because there's so many decisions in that you're making without even realizing it, that your brain is draining, it's you're just pulling so much energy from your brain because of all of these decisions that are indecisions that you're not making, versus when you take the time and say, Okay, this is what I need to do, and this is my focus time that I need to provide to my clients so that I can deliver on time. 00:06:49.040 --> 00:06:57.040 What I bring is excellence, is timely, and that's what work that I want to do. 00:06:57.519 --> 00:07:00.319 So get real with yourself. 00:07:00.720 --> 00:07:07.920 I if you know me, you know that I love calling things out when they should be called out. 00:07:08.000 --> 00:07:10.879 And I always appreciate when people do that with me as well. 00:07:11.120 --> 00:07:13.279 My husband does that all the time. 00:07:13.680 --> 00:07:19.439 He knows that when I'm just procrastinating or I'm making excuses, he's just like, There you go, making excuses. 00:07:19.519 --> 00:07:20.160 And it's okay. 00:07:20.240 --> 00:07:22.639 Like he when he calls me out, it like resets me. 00:07:22.720 --> 00:07:23.839 And you're like, You're right. 00:07:24.000 --> 00:07:27.759 I'm just making a dumb excuse not to do XYZ. 00:07:28.319 --> 00:07:30.319 So, same thing with you. 00:07:30.480 --> 00:07:50.319 Like, keep in mind that sometimes it is it is easy to get overwhelmed, get burned out, but most of the time is because we're just not really focusing on what we should be focusing with a certain time that we have. 00:07:50.879 --> 00:07:54.560 So I would say take a look at that time tracker. 00:07:54.639 --> 00:07:58.240 I put it on the show notes, start doing that, even if you do it for two days. 00:07:58.319 --> 00:08:04.480 I've asked my clients to do it no more than two days, because honestly, they probably won't keep track of it. 00:08:04.560 --> 00:08:07.120 And then those are gonna start filling things out just to fill it. 00:08:07.279 --> 00:08:13.040 And for some, for those that like to complete things, they're probably just gonna be like, okay, no, I need to complete this and da-da-da-da. 00:08:13.279 --> 00:08:15.360 And it might not be the real thing, right? 00:08:15.519 --> 00:08:20.240 So I say, just two days, let's look at it on our next meeting. 00:08:20.959 --> 00:08:28.399 And a lot of the times that becomes an eye-opener, but that's really kind of like our first step to guiding us to where we need to be. 00:08:28.560 --> 00:08:34.559 And so then I go back and I say, okay, number one, how much are you charging? 00:08:34.639 --> 00:08:49.679 Because you're saying that you feel like you're undercharging, but you're too afraid of increasing your price because that client might leave, or you're not giving enough value for that. 00:08:49.840 --> 00:08:52.320 We just need to figure out why you're feeling that way. 00:08:52.559 --> 00:08:56.559 So that is all that I just explained about the labor cost. 00:08:56.879 --> 00:09:05.840 And I know I went a little bit on a tangent, but I really want to make sure that you understand the importance of your time. 00:09:06.000 --> 00:09:08.480 Your time cannot be scaled, right? 00:09:08.559 --> 00:09:10.879 Your time cannot be multiplied. 00:09:11.120 --> 00:09:15.919 If anything, we are running out of time, is that term that some people have used? 00:09:16.080 --> 00:09:17.039 We run out of time. 00:09:17.279 --> 00:09:19.279 So be mindful of your time. 00:09:19.440 --> 00:09:22.320 It's it's precious, it's golden. 00:09:22.639 --> 00:09:41.919 And depending on the time of day that you have the most energy, maybe those are the times that you'll want to do the things that are the hardest for you to do, because you will feel like you can do anything because you did the hard thing, whatever, if it was the numbers, if it was a uh the project work, if it was working out, like for me is working out. 00:09:42.000 --> 00:09:47.120 Like I do not that that is not something that I look forward to, at least not yet. 00:09:47.279 --> 00:09:48.480 Maybe one day I will. 00:09:48.559 --> 00:09:56.080 Right now, I'm still in the I just have to do it so that my back doesn't hurt and hopefully I don't die before my husband. 00:09:56.639 --> 00:09:59.279 But having said that, is is that's the importance. 00:09:59.440 --> 00:10:06.320 The next part is the cost, and that is gonna give you the number that you should be charging. 00:10:06.559 --> 00:10:15.519 So after you look at all of that, one of the things I like to think about is how many hours a week do you truly, truly, truly work? 00:10:15.679 --> 00:10:21.519 Okay, and I'm not saying the ones that you're just sitting at your desk or like walking around the house, like I mentioned. 00:10:21.679 --> 00:10:41.440 No, I want to talk about the times you're actually really doing focus work and you're saying, you know what, I did work fully five hours, four hours, whatever it is, and I like to maintain that, or I work 40 hours, sometimes 60 hours, or maybe if you're one of those that say they work 12 hours, but let's be real. 00:10:41.519 --> 00:10:49.600 Do you are you really working, working 12 hours a day, or you're just wasting

a lot of time in between and you're saying you're working 12 hours a day? 00:10:49.919 --> 00:10:52.240 So we have to be mindful of that. 00:10:52.320 --> 00:10:57.759 So say, okay, well, how many hours do you truly want to say that you're working? 00:10:58.480 --> 00:11:01.200 And what is your annual sales goal? 00:11:01.440 --> 00:11:14.240 So, for example, let's say you want your annual sales goal to be 200,000, just to pick out our number, and then you say, I truly do want to work 30 hours a week. 00:11:14.480 --> 00:11:24.879 Okay, and that is gonna give you about four 1,440 hours if you multiply it by 48 weeks. 00:11:24.960 --> 00:11:31.039 And I just chose 48 weeks because I know the year has 52 weeks, but you know what? 00:11:31.200 --> 00:11:45.600 I do take about a month off, not all together at once, but you know, in different areas, because let's say we have Thanksgiving, we have all the holidays, the breaks that the kids have. 00:11:45.840 --> 00:11:49.039 Sometimes we have some vacations here and there, and I take times off. 00:11:49.120 --> 00:11:52.480 So let's say I, you know, you take like truly like three to four weeks off. 00:11:52.720 --> 00:11:55.039 So you would deduct that from the annual, right? 00:11:55.120 --> 00:12:01.279 Because 52 weeks in a year, you deduct to whatever you think that is the time that you usually take away. 00:12:01.519 --> 00:12:05.519 So, example, you know, I'll say 48 weeks for me. 00:12:05.840 --> 00:12:22.159 So you get that number, and which is 48 weeks, you multiply it by the 30 hours that you're working per week, which will give you 1440, and you're gonna divide that by your annual sales goal. 00:12:22.399 --> 00:12:30.399 So when you divide that by your annual sales goal, you're gonna get, and I should have calculated this year on, you get$138. 00:12:31.919 --> 00:12:32.240 Okay. 00:12:32.480 --> 00:12:36.000 $138 an hour is what you're worth. 00:12:36.320 --> 00:12:51.440 So from$138, I always think about and I say, okay, from those times the minimum that I should charge in order to cover my costs, in order to cover materials, in order to cover the minimum stuff in my business. 00:12:51.759 --> 00:13:05.759 If you're going anything lower than that, when you're evaluating a product or service, an hourly rate, you're gonna feel like you have no money. 00:13:06.480 --> 00:13:16.240 And it is true, you probably won't have enough money because you're undercharging what the minimum costs to maintain your business. 00:13:16.399 --> 00:13:25.440 And usually an online business like ours, like Service Base, we should be aiming for at least 40 to 50 profit margins. 00:13:25.919 --> 00:13:28.000 At least 40 to 50 profit margins. 00:13:28.240 --> 00:13:38.159 One of the things that I do like to for myself is I look at my monthly statements every uh every two to three months, mostly every two months. 00:13:38.480 --> 00:13:46.240 And the reason I do that is because we live in the world where there's so many subscriptions for everything. 00:13:46.399 --> 00:13:57.840 Everybody wants to put you in a subscription, which I get, which is totally a great way to keep the business going, maintain business, retain business, whatever it is, grow your business. 00:13:58.480 --> 00:14:14.960 But we have to be mindful that if we are not using that service the way we should be using it to really help our business to grow, then we're just throwing money away. 00:14:15.440 --> 00:14:23.679 So anytime you look at your statement, take a look at it and say, Hey, did I use this product of service the last month? 00:14:24.080 --> 00:14:24.399 No. 00:14:24.879 --> 00:14:26.240 So why are we keeping it? 00:14:26.399 --> 00:14:27.279 Why do we have it? 00:14:27.440 --> 00:14:29.120 Can we put a can we put a hold on it? 00:14:29.200 --> 00:14:34.000 Sometimes, you know, there's some questions out there that that allow you to put holds on it or freezes on it. 00:14:34.240 --> 00:14:37.039 If you need to reevaluate something, put a freeze on it. 00:14:37.200 --> 00:14:39.039 If you don't want to cancel it, that's fine. 00:14:39.200 --> 00:14:45.600 But put a freeze on it, put it a tickler on your calendar and say, I need to review this next month. 00:14:45.759 --> 00:14:54.320 And you put it on on your calendar, you put the times that you're gonna review your statements and you say, Okay, is this gonna stay or is this gonna go bye-bye? 00:14:55.519 --> 00:14:58.960 And why did you decide to put why did you decide to not use it? 00:14:59.039 --> 00:15:01.120 And put it in there, put a note in it, you know. 00:15:01.360 --> 00:15:19.679 When you decide to say, you know what, I am gonna cancel it, okay, put a note in there and say why you're gonna cancel it to remind yourself why you did it, because that's what's gonna help you to stop you from doing it again with another similar or prettier subscription that is gonna do nothing or the same thing as this one. 00:15:19.840 --> 00:15:24.000 But so do that, review your statements, be mindful of where your money is going. 00:15:24.080 --> 00:15:30.720 And then I'll talk in a different episode about projections, like thinking in the future of like your business. 00:15:30.960 --> 00:15:54.639 It can be like two to three months future, it doesn't have to be like years future, but even in the first three to six months that you can say, hey, you know, my projections are this, and these are gonna be my costs that will be going up if I bring in X amount of clients or if I do this, that it's really good to have because you have an expectation of where you're gonna be in three to six months for now, financially. 00:15:54.879 --> 00:16:00.080 And that is gonna help you start thinking more strategically when it comes to your business. 00:16:00.320 --> 00:16:12.799 Keep all of these things in mind because those are the things that are gonna help you make better decisions in your business and honestly, just a better leader, better CEO over time. 00:16:12.960 --> 00:16:14.240 It takes time, but it takes practice. 00:16:14.320 --> 00:16:14.879 But you know what? 00:16:14.960 --> 00:16:27.039 Right now, even if you're a solo printer or you have like a team of two or three people that are helping you around, this is a perfect time to start practicing this type of skills and type of thinking because it's it's easier right now. 00:16:27.279 --> 00:16:35.600 The more you grow and you think, well, I don't have to worry about that too much right now, it's it will get harder if you don't have a set foundation. 00:16:35.840 --> 00:16:46.960 So I really hope that this episode helped you start thinking a little bit about this financial journey that you're going to take on as a leader as your business grows. 00:16:47.200 --> 00:17:11.759 And the next time that you make a price and decision, it's not just based off an emotion or a feeling or that person in front of you is like, help me out, but it's based off a good financial decision because you know your business, because you know what's gonna cost you to serve that customer and not feel like you never want to work with this customer again because they're only draining your business. 00:17:11.839 --> 00:17:16.240 Like every time you look at their bill, you're gonna be like, this doesn't even cover anything. 00:17:16.480 --> 00:17:21.200 And then you become resentful towards that client, you're right we don't want that in our business. 00:17:21.359 --> 00:17:38.240 Our clients deserve the best, we deserve the best, so we want to be mindful of what we're of what we're doing in our business and how we take care of it so that we can provide the best services out there and and everything that we do. 00:17:38.400 --> 00:17:40.960 All right, I mean guys, I hope this episode was helpful. 00:17:41.119 --> 00:17:42.000 I'll see you next time.

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