The Number One Reason You Absolutely Must Have the Lowest Fees

Okay, you've got me; I can't think of a reason that you should consistently have the lowest fees. But I can think of many reasons you shouldn't. In fact, I can think of many reasons you shouldn't even have what would be considered low fees, never mind the lowest.

First, unless ever aspect of your business is geared toward selling at low fees, you cannot be as profitable as you could be. Most likely, you won't be as profitable as you need to be. When I say all aspects of your business, I mean your rent, your production costs, your purchasing power, your marketing costs, etc. If any of these aren't at their lowest possible rates, your profit falls short, your business suffers, and the probability of your long-term success decreases dramatically.

Second, your fees must reflect where you are positioning your services. If you want to work in the mid-level of your industry, then your fees must support this. If you want to provide services for high-end clientele, then you must charge fees that are commensurate with this. Since many people associate cost with quality, you cannot market to the high-end with low fees. It just doesn't make sense to them, and they don't buy.

Third, without sufficient profits, all you have is a job with your name on the door. As a business associate puts it, you are then "a business owner, but not a businessperson." Let me tell you a little story that illustrates this. I think you'll find it relevant.

Recently I was sitting with two business associates, and the name of another associate came up. This is someone we would all enjoy seeing prosper. One associate said, "He does great work and his fees are so low!" The other one added, "He has been exhausted lately. He's had to take on a second job and doesn't get in until three or four in the morning."

Get the point? Great work but very low pricing means he has developed nothing but a job for himself. And it's such a low-paying job, he has had to take on a second job, leaving him with only a few hours sleep a day. I have to believe this is not why he went into business. So, are you charging enough? Are you as profitable as you should be? Think about it for a while. The answers matter a great deal.