You're preaching to the choir, Fredric

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Laaaaaaaaaaa.
...Laaaaaaaaa.
.....Laaaaaaaa.
Eeww, that sounded terrible. Must be the cheap 4-track I'm using, for certainly it's not my skillset. ;-)
Many folks who are new to self-employment are kind of afraid to charge true market rates. I find that this is usually either because on one end of the spectrum, they know they aren't worth it, or because they are worth it but they haven't really researched the market and the competition, or simply because they don't want to "go through the hassle" of actually having to *sell* themselves.
I think it's more of a lack of confidence in ability to sell combined with a strong desire to get customers quickly.
Obviously if you've borrowed money from yourself or a bank in order to start a business, you have to make payments whether you have customers or not. So often times new businesses make stuff far cheaper than makes sense trying to get a slew of customers in the door quickly, to cover that monthly nut.
Selling is not that difficult if you understand how to do it, and there are several proven methods. Though, over the years I've had to amend that thinking because I've discovered that most people, even if they do all the right things, couldn't close a deal even if the customer had a pen in their hand. They're just not wired for it.
I could easily write a rant on this but I'll be a nice guy and spare you
It comes down to having the self-confidence and self-respect to charge what one needs to charge to pay the bills and make enough profit margin to make it actually worthwhile. I've been riding the self-employment train long enough to know all this already, but the owners are still kind of learning the ropes in that regard, so it leads to some interesting after-session discussion about all this stuff

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I'm sure it does lol. An "easy" way of solving this problem is to price out all the things you normally give away and list them on your rate sheet. The person selling can still throw those if necessary but assigning them a price will cause the salesperson and the customer to at least ask about the value for the dollar of those things.
When I had my studio, though that was 20 years ago, I used to have a line item on my rate sheet for rewinding media - a spool of 2" tape that zips by at 30 inches per second takes a while to rewind - so that time was valuable and yes, often I'd throw that in but it *was* listed on the price sheet.
It's also when you don't want a sale - I'm sure you've run into this - a customer comes in the door and instantly you know regardless of everything else, you really want them to go away and not come back. They get the full rate sheet "as is" and that's that. If they do hire your company, they're in a sense paying an "asshole surcharge" which obviously you can't list on the invoice as an "asshole surcharge", as tempting as it would be.
Another tactic is to focus on total price, not the individual line items in the list. Discount them or drop things off or throw things it, it really doesn't matter. What does matter is your customer has $10K to spend and not a penny more. Who cares if recording is $75 an hour with a free tech or $65 an hour with a $10 per hour setup tech charge - if the total breaks the customer's piggy bank they're walking.
But you can never haggle the price UP; undercharge for your service, and you're stuck with that rate, even if you wind up losing money on it.That's really the biggest issue with most folks, I think.
Absolutely... which is why starting off as the cheapest supplier usually fails. Walmart has made a great thing about of being the cheapest, and they're ruthless about it.
But... if you were to compare the value for dollar there versus somewhere else, you'll find that it's about the same.
For example, my local Walmart has a big box of oreos for $2.39 "rollback". My local pathmark sells that same big box of oreos for $2.49.
Driving three additional miles in my 1993 F350 crewcab to get to that Walmart costs me far more than the 10 cent differnce.
Also, I wear golf shirts most of the time, and the ones I buy from Land's End for $15 (on sale, end of year) last me 4-5 years where as the ones I got in Walmart didn't survive anywhere near as long - they're thinner, less comfortable, and have a heck of a lot more polyester in them - bleah.
It's all in how we look at things as salespeople and customers, and if someone wants to start off as the low price leader, they're going to choke on those discounts for the rest of their existance.
Walmart has this problem too - and they solve that by aggressively and arrogantly telling their suppliers "F-U we're Walmart, make it cheaper" and, their suppliers do because they're afraid of losing the global Walmart enterprise as a customer.
Especially in the technical fields like audio engineering or IT (I also have a history of IT consulting like you, BTW); where many of the best workers tend to be "customer service and sales challenged".
(grin)
Like it or not, the minute one starts charging for their services, it's a business. The whole "in the internet age, everything should be free" attitude is pure bullshit when your bills come past due and your family goes hungry. It's business, and business requires salesmanship and customer service skills. You can be the absolute best producer or programmer in the world, but if you can't convince an ignorant world of that, it'll do you no good whatsoever.
Exactly.
Exactly.
Exactly.
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I recently got burned by a guy on the internet who has a "professional pro-tools recording studio" and charges $45 an hour. I selected him because I'm working with a vocalist who lives about 12 hours away from me and due to a temporary medical issue cannot drive. So, I picked this guy because of his proximity to her - a simple 10 stop bus ride. He also had protools and while I'm not a fan of that product line generally the new-entries into the recording industry won't make that kind of investment right off the bat. Talking with him on the phone he certainly wasn't a wizard by any means but after playing Q&A for 20 minutes I felt comfortable he could point the mic in the right direction and set the levels correct, and record her voice in multiple takes.
Which is all I wanted him to do - play a stereo mix that I provided in her headphones, set all the controls to neutral and adjust levels accordingly, record as many times as is necessary (up to the full day in the studio I pre-paid for), and upload ALL of the resulting vocal tracks - good or not - to my FTP server. I figured a full day is more than enough to record one good vocal track for one song.
She called me that night to complain that he's a chain smoker and smoked his brains out, which made her uncomfortable singing in the same room. She also didn't like that "that room" was also his bedroom and he was apparently kind of sloppy. He also shared the house he worked out of (and apparently sleeps in) with three other guys. That also made her uncomfortable.
Anyway, a few days later he uploads one file - a low-bitrate mp3 file - which is a mix of one of her WORST takes (very pitchy) with the music I sent him mixed in behind - but he made my stereo mix very muddy, over-compressed but not even consistent across the tune, and basically just killed it.
I called him to clarify why he sent this instead of just the vocal tracks as I had asked, and paid for? He claimed to misunderstand and promised to make good on it but as it turned out in the end he didn't save the recordings they did that day - well, apparently not past his making the mp3 file. He offered to give her another "half day" as a consolation prize and after that experience I told him no thank you.
Who deletes recorded material the day after they depart from the studio? Hell, I have stuff all the way back to 1985.
So, I'm resolving the problem by mailing her a Zoom H2 "handy recorder" preconfigured so all she has to do is sing into that and adjust the H-M-L switch on the side for powerful voice. With an 8gb SD card it has 12 hours and 30 minutes or recording time and I'm sure she'll get a good take in that window. She now has the music in MP3 format and will play it into her headphones, and once the lead-in snare starts, she'll push record on the Zoom device.
Not exactly how I wanted to do this, but it has to be done. This recording needs to be on a CD by July 20th because she has a unique opportunity to meet with a country music "giant" for 10 minutes that day. She will have his undivided attention, and play this CD for him.
::eyeroll::
I *KNEW* I should have driven out there and done this myself.