Quote:
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Originally Posted by mindonstrike
You can build a million dollar home in a hunded thousand dollar neighborhood but that doesn't mean you'll ever get any where near a million dollars for it.
It doesn't matter what your expenses are, you are only worth what the market is willing to pay. Start lining up those nursing homes 
Sam |
My Dear Sam
Million dollar home in hundred thousand neighborhgood???? Of course you will, in most communities thats called Gentrification, it's done all the time, Ask Donald Trump
I disagree very strongly, It does matter what your expenses are! Thats what dictates what your minimum charges should be in order to have your baseline covered. Thats part of a good business plan, and without it you'll surely fail.
How can you even think that your value in your chosen industry (no matter what industry may be) if you're self-employed is dictated by "what the market is willing to pay"?
Your value is self determined!
When I was teaching Stained Glass work, my competitors were giving classes to teach the craft for $25 - $50. When I opened my shop everyone told me that was all I should charge, 2 weeks later I placed a $50.00 ad in a local advertiser. A simple two line ad "Stained Glass Instruction limited enrollment 7 openings left. $250.00
My First class had 22 students, and the back end sales after class completetion averaged $400 - $600 per student with continued on going sales of equipment and supplies. Meanwhile the $25 - $50 folks where slowly folding their tents and leaving the fields. I continued to "bring in the sheaves" until my life, shop and home where destroyed by a major fire. But the point is ....IF YOU'RE SELF EMPLOYED THE MARKET NEVER DECIDES WHAT YOU ARE WORTH UNLESS YOU DECIDE TO PERMIT IT
Oh Yeah! Those nursing/retirement homes???? Just imagine how many parties, weddings, graduations etc I might obtain because the relatives think to themselves " Let give this guy a play Mom/Dad had such a good time and he was kind enough to entertain at the home for free, and even if I never get a single booking from that veneue, what the hech it'll make me feel real good.
So you see Dear Sam " if you bargin with life for a penny ....truly life will pay no more" And therefore you, not the market plsace have determined your own value
Warmest Regards
Glen