The wrong way to haggle over prices

One of the reasons I hate working with Israeli clients is the haggling. When I come up with a price I didn’t just pull it out of my ass, I have gone through my pricing quite a few times. So having someone who knows nothing about the process or what the job entails arguing over the price is just too much.

But wait, it gets worse. As bad as haggling over the price when negotiating is, some Israelis like to step up their game by haggling after the job is done. After you have no more leverage, you did your part and now need to get paid. This is one of those disgusting habits that make me understand why the whole world hates us.

Unfortunately, this happens everywhere. You can start a job and once you’re overperforming your commissions will get cut down. You can be a loyal customer for years and then have your price go up while new customers pay 10% of what you’re paying for the same service. This post is not just a rant, it’s point is to show you that if everyone hates Israelis there’s a reason for it.

But it doesn’t have to be that way. We could learn from our mistakes and start behaving like fully grown adult human beings. Or am I just dreaming?

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Why customer service matters

Most new business owners think that when they get clients it’s a done deal but it’s not always the case. In fact getting a customer in the first place is very expensive and most times doesn’t even allow you to break even. It’s only when you sold that client additional products for the third or fourth time and got some referrals from him that he starts to be profitable.

I just saw another video from Gary Vee with Jon Taffer explaining this idea to a restauranteur in Tennessee. You can see that video here.

New business owners are so busy chasing their own tails that they forget to make their clients feel a connection with their business. Don’t forget that your customers are constantly courted by your competitors and most of them are going to employ dirty tricks. They are going to say anything they have to in order to get your customer to dump you and buy from them. The only thing that’s going to keep people coming back is the good service and dependability you provide.

Not everyone can manage a business, but anyone can own a job

I understand that you might not want to manage a big business, not everyone does. I understand that you might be the type of person that would like to do his job and go back home. But even if that’s the case you can still be your own boss.

Is it going to be easy? No. But ask yourself if your job is easy. Not just that, but is it covering your bills? Your boss doesn’t have the responsibility to cover your expenses that’s on you. So how do you do it?

No matter what it is you do you can do for yourself. Meaning that you don’t have to own a big business you can just own your job. By starting a small business and servicing your clients directly. And it’s much simpler to do than you think. All you have to do is structure a plan and follow it.

Let’s say you want to make $10,000 a month. Do you do that now? Let’s see how you can start doing that right now, this month. Let’s say that you charge $100 an hour for your services. That would mean that you need to get 100 clients to pay you for one hour. But not every person you talk to will become a client so let’s say you have to talk to 5 people and one of them will be interested in your service. That would mean that you would have to talk to 500 people.

I would even take it one step forward, some of those clients will be intolerable. So to make sure I can pick and chose the people I want to work with, I would double that number to 1,000. You don’t have money to advertise? That’s fine, go door to door and start talking to as many people as you can. Remember 1,000 divided by 24 days a month is just less than 42 people a day. And before you start calculating the time it would take, let me assure you that some of them will just brush you off. So they won’t take more than a few seconds of your time.

One last tip I would like to give is not to look for a yes, collect as many no’s as you can. The yes’s will eventually find you.

Should you quit your job?

Everyone gets pissed off at their job from time to time, but that doesn’t mean you have to quit. There is, however, a time when you should. That’s the focus of this post, explaining logical reasons to leave your job.

Your job is taking up most of your time and should at least cover your living expenses. Your job does not have to cover an upgrade to your car or home that’s on you. But it has to cover your bases, rent, food, bills, and transportation with a little left over. The problem is that most jobs don’t do that. Not only that but they take up so much time you can’t start another cash flow stream, A side business, another job, whatever.

Let me be clear, you boss only cares about his bottom line, not your well being. If you can’t pay your rent or get evicted he can’t care less, that’s your responsibility.

So what do you do?

You diversify. Your time is a currency like any other and spending it on a job that doesn’t cover your expenses is a poor use of it. Start off by calculating exactly what your expenses are, then find a job that will cover the bigger part of them. As for the rest, you can either find another job or start a side hustle (side business).

Why would you do that?

There are many things that happen behind closed doors in every business, and yes even in your job. Those things dramatically affect your earning potential. In good months you’ll do fine the problem in that your expenses are not taking into account that you have some bad months. So the best thing you can do is split your time between two income generators. That way when one is having a good month the other might not be having as good of a month.

Every business is seasonal so make sure not to choose the exact same field for both of your income streams.

 

Don’t get mad get paid

When I was fixing computers I had to deal with clients that were constantly trying to scam me into giving them service for free. The worst part about it is that I used to carry that anger with me all day long. Until a friend gave me an idea, don’t get mad charge more.

We all have those clients we wish we didn’t have to work with. One of the advantages of owning your own business is to fire the occasional client. Sometimes that client can take up time you could have used to get two or more other clients. But sometimes he just pisses you off enough to ruin your mood but he’s still a paying customer and you don’t want to lose him.

I posted two ideas in the past about this kind of situation. How to filter clients and how to charge more without losing your clients. I decided to combine those two and came up with different prices for my clients based on their grade. Instead of just firing the client I would increase his charge per hour, what is he going to do leave me? I was going to fire him anyway.

I did not expect that some of them would actually pay more just to work with me. Now don’t go around telling them that you charge them more. Just explain that you are increasing your prices, and let them decide if they want to keep working with you.

Don’t just discard new ideas, give them a shot

You know those people that can show you every way your idea won’t work? Those kind of people are everywhere in every industry. They keep breaking you down for a few reasons not the least of which is building up their own egos. We’re not talking about simple people here, they are usually very intelligent people. But being right is more important to them then getting the job done.

I just saw a video by John Morris, in it, he talks about this issue he’s having. An issue with people who spam his comment section without giving his ideas a chance. And in this specific video, he’s reading a comment from a viewer that tried his idea out and got two new jobs.

The thing that got me is that he’s getting comments based on his headlines, not necessarily the content of his videos. Something I can tell you that I have seen first hand on this blog. People will comment on Reddit or sometimes on this blog about a post without even reading it. I know they don’t read it because they raise the same issue that is discussed in the post.

I would argue that those people are just too lazy to try something new. Or are too afraid of change to do something they are not sure of. The bottom line is you’re here because of the road behind you, not the road ahead of you. If you want your life to change you’re going to have to try new things.

How many times do you need to hear it?

Not everyone gets your point the first time. It doesn’t mean their slow, or stupid. It just means that their brain works differently than yours. I wrote a post about how to come up with new ideas a while back. This is just another process our brain goes through.  

We attribute too much to “coming up” with something new, when the truth is we had the information in us all along. But having the information is not enough we have to have it accessible, something that is not always the case.

More times than not we have to hear about something again and again to have it “fresh” in our thoughts. Fresh enough to combine it with something else. I bring this up because I just had that experience first hand. I just had a great idea that combines a few things I learned. I got the idea when re-reading ‘the four hour work week’. I’ll let you guy know how it goes when I start.

Hopefully I will be able to document the process to show you how a new business is borne and how to grow it.