Savvy Women Earning

The Three Month Challenge: Stop Underbilling

Is this you? You put in ten long hours on a big project, but when it came time to bill the client, you felt weird about charging for all of your time, so you shaved some time off.

Sometimes it is because you felt you couldn’t charge them for all of your “learning” time and sometimes you worried that they would experience sticker shock, so you helped them avoid this pain.

(What a good girl thing for you to do. How nice for them.)

Or is this you? You charge by the hour, but you give time away that you don’t charge for. Sessions may run over time, but you rarely bill your clients for this. You don’t let yourself think about how that time adds up.

(Again, what a good girl thing to do. How nice.)

Why Don’t We Earn Enough Money?

I write a lot about pricing and how to set your fees. But it’s not all about the fee. I talk to some women who say they think their fees are set at the right level—but then admit they just don’t always bill for all of the time they give to clients….

Ask yourself this important question: Are YOU ever guilty of underbilling?

Underbilling is a potent form of underearning. When you bill for less time then you worked, that is underbilling. It is one reason why we don’t earn enough money.

But you are worth more! You deserve to charge for all your time, honest. Stop giving yourself away. You would not support a friend in giving herself away for free. Why do it to yourself? It is unkind.

Billing for all your time is an important form of self care.

But why do we underbill?

• We may feel like we can’t charge a client for our “learning time”.
• We’re not tracking all our time so we can’t bill for all of it. (Does this one hit home for you? Isn’t it interesting that you are not tracking all your time.)
• We worry about our clients and inadvertently decide for them what they can and can’t afford.
• We don’t feel like we are quite “enough”- so we want to give and give to justify our money
• We are caught up in a perfectionist cycle and don’t ever feel like our work is quite perfect enough. So we discount it. (I hate to break it to you, but you’ll never be perfect. Sorry.)
• We’re not sure exactly how much money we need to make, so our own money fog sits like a cloud on our invoicing and our business in general. (Call me if you’re in a money fog! I can get you out!)

The list goes on.  Was your reason on the list? If not, what is your reason?

Like everything, we need to name the problem first, and then decide on a new course. Awareness is huge.

Your Three Month Challenge
So here is my challenge to you: Make a resolution. Even if you aren’t sure that you can end your underbilling forever, resolve to end it for three months.

Charge for every minute and every hour that you put in, from right now, in January, to March 31st.

Call it the Three Month Challenge to Stop Underbilling. Go with the discomfort. Force yourself to do it. And notice what you notice.

If you accept the challenge, join the (no-cost) 3 Month Challenge Encouragement Group here!

And please comment below: What do you think about this challenge and how it might impact you?

Related posts:

• Small Business Recession Woes: avoid the temptation to discount your services
• Small Business Recession woes? Take advantage of your down time
• Escape the Money Fog and Earn More (article from Mikelann’s newsletter)
• Lessons from bikini waxing: don’t leave money on the table
• Discounting fees on your clients behalf?