I am a subscriber to Paulette’s newsletter and recently, she included this information, which really got my attention:

Then there is always the price thing. Some people think anything is too expensive (translation is simply that it’s more money than they view the offer being worth to them). Other people question how valuable something can be if the price is too low. Everyone has a number that they assign to the value they place on anything, whether it’s tips booklets or a year-long round-the-world trip. It is your mission to find out what that number is and to discover how close you are to it. When you ask “what’s your budget?” it can be a circular conversation.  A way I’ve found to break that cycle is to give a silly range – “are we talking $100, $1,000, $10,000, or a million?” That usually prompts them to drop their guard and say “oh, we were thinking $1,500.” Now you know if you’re in the same range or not, rather than playing guessing games in presenting a proposal, like shooting darts on the wall.

If you have been around Paulette for any length of time, you know she uses both humor and a straightforward approach – both of which I can appreciate.  To learn more about her and what she has to offer, you can access her site here (plus you’ll see me along with several other tips booklets authors).

 It’s a must-read for all women, not just women in academia.  Order it today (and then get your friends to read it, too).  Wish I’d had it to read 25 years ago.  Let’s just say it would have paid for me to buy thousands and thousands of copies.

Since you’ve done so much work consulting, I’m wondering if you can provide me some quick advice. A small college has asked me to consult on an evaluation of their promotion and tenure policies.  I can imagine how this would work substantively, but not financially. Have you ever done something like this? If so, what type of a fee is appropriate?   Thanks in advance for any advice you can provide!

Meggin:

How long do you think this process would take you?

Response:

I don’t know?!  I imagine one full day on campus talking to people, one day of prep (reading their written materials and such), and one day for drafting a report and recommendations. Honestly, I’m just guessing.

 Meggin:

So three days is a conservative estimate for something like this…and with most consulting…it grows beyond what you are imagining…you’ll connect with people and they will want to talk (as they should) and email you and call, etc. Plus, what if you get into a can of worms (which is very possible). How are going to be doing your report? If it’s just written, then that’s one thing, but if you need to discuss it with the Provost or whoever it is that is hiring you….

I’m not sure what your hourly or daily rate is for consulting, but let’s say it’s $175/hour, then I would charge for at least 24 hours (3 full days + the overflow into a fourth “day” – and it could easily go much past that) so that’s $4200 (plus travel, etc.). If you have a daily rate, say $1750/day, then it would be $7000 for ‘four days’. I wouldn’t say anything to them about days or hours…I would talk about the services you will be providing and give them a price, but not break it down.  You are providing value to them that few people could.  They aren’t hiring someone from the yellow pages at an hourly rate, so you need to price your services as a package – and then you work til the job is done.  After you’ve done more things like this, you’ll have a better sense of how long it will take. 

You could also offer options of what you will do at various price points. 

Response:

THANKS!  This helps so much.

This book will wake you up.  I only wish it had been available at the beginning of my career. 

The authors also have a new book, Ask for It: How Women Can Use the Power of Negotiation to Get What They Really Want and it is also worth reading. 

————————–

If you love having books arrive FAST, be sure to sign up for Amazon Prime…free 2-day shipping for one flat rate each year (and you can have 4 family members all using it.  Such a bargain for those of us who want books NOW vs. later!)

Anyway, good way to get ahead and have something that you buy now and use whenever…forever.

First, be careful not to make this more difficult than it needs to be. I use a fairly simple system that works great for me and may work for you, as well.

·      At the beginning of each year, I create 12 files, labeled (with a label maker or something other than my handwriting, which isn’t too legible) January – December. I put those in my accounting drawer (which is right next to my computer). I want it to be easily-accessible when I am using the folders or when my bookkeeper is here taking care of my accounting.  

·      Daily or whenever I have receipts that come in (when I make purchases at stores, when boxes are delivered from UPS with receipts inside, or when electronic receipts arrive, I put them all into my “To Be Processed” accounting folder. If it’s something I charged on one of my credit cards, then I put it in that folder. Within that folder, I have individually-labeled folders for my two main credit cards, along with a petty cash folder, etc. ‘To Be Processed” simply means that it needs to be put into my QuickBooks.  

·      Then, weekly, either my bookkeeper or I will process all of my receipts and input the information into QuickBooksPro. As soon as the information is put into QuickBooks, I move these receipts and other documentation into the current month’s receipts folder (Note: Once the final statement for the credit card comes in, I staple the corresponding receipts to that statement so it’s all together in the month’s receipt folder.  

·      Then, after the month has passed, I move the folder into one of my file cabinets that is across the room from my desk so I have access to it, but it’s not in my “prime real estate.”  

·      At the end of the year, I move all of the year’s monthly folders to my garage file cabinet (where it’s archived in case I need it) and then I start the process over with a new set of folders.

It’s not fancy, but it’s worked for my business for over 10 years (long before I even used QuickBooks. As much as I would hate to be audited, I would be ready with all my receipts, as needed.

Note:  To access a fabulous teleseminar taught by QuickBooks Pro Advisor Marie Gibson, just go to the ShoeBox101 page where you can register and receive the recording, handouts, and booklet.  Marie recommends a different format than the one I use (and one that has helped me immensely in just plain understanding accounting)…and so many folks who have taken the class have implemented her ideas to get themselves squared away for 2009.  You want to have your ‘books’ in order!

Experts are fairly evenly split on this – because there are arguments and experiences on both sides of the issue. In this article, I’ll share reasons to and reasons NOT to include your price in your materials (including on your website).

Reasons to include your price:

1. If you have a very high price and you have more clients than you can handle, then include it, because it will help drive some folks away.             

2. If you have a very high price and you know some people are intrigued and actually more interested because the price is high (this is called prestige pricing), then they will be even more interested if they know you have a high price. They will be attracted by the exclusivity.             

3. If you want people to contact you who are truly interested and won’t be driven away by the price (whatever it is), then they might as well know ahead of time what it is. That way, you don’t have people who are only shopping on price, but are shopping on value, “fit,” etc.             

4. If you are proud of your price, that is, if you want people to know, “By jove, this is my price and I’m proud to have people know that this is what I charge and can command in the marketplace.” For example, for me to do a full-day of office organization in my local area, I charge far more than many other professional organizers charge. I’m proud of my price – and also know that advertising it in my materials will address #1, #2, and #3 above.             

5. Include your price if it is absolute (set in stone) and you would be playing games not to include it. This would be for lower-priced items (books, materials, teleseminars, etc.) There’s no sense to act like it’s a secret. Imagine going to amazon.com and having them not tell you what the price is until you check out. It would be irritating to say the least.

Reasons NOT to include your price:

1. Some people shop on price and if they are thinking about what you charge (and whether that seems high or low to them) then they may reject what you’re doing before any further investigation.             

2. If you know that your product or service needs more discussion than what your marketing materials can offer, then you want people to contact you for more information–and that allows you to learn more about them, too. Then, and only then can you give them the appropriate price. The idea would be that you help “sell” them on what you are doing and also begin to develop a relationship with them – and determining your ‘fit.’             

3. You can’t include your price if there is not an exact price. So, for example, I don’t have an absolute daily fee for speaking because it depends on a variety of factors. I tend to give people a range (both on my website and when they first inquire) until I can gather more information and then give them a firm price.

So, you can see that there are reasons to – and reasons not to – include your price.

And, to make sure you are productive in your personal and professional life, you’ll want to access the resources at

**http://www.TopTenProductivityTips.com

(c) 2009 by Meggin McIntosh, Ph.D., “The Ph.D. of Productivity”(tm)

Through her company, Emphasis on Excellence, Inc., Meggin McIntosh changes what people know, feel, dream, and do via seminars, workshops, writing, coaching, & consulting.

Article Source: http://EzineArticles.com/?expert=Meggin_McIntosh

Can you give us more information about using teenagers to run errands for you? For example, how much do you pay them? Do they sign a contractor agreement? What type of tasks do you have them do? If you don’t know them well, do you visit with their parents first? Any information about this topic would be appreciated.

Here are some of my responses to these questions:

I pay young people anywhere from $3/hour – $11/hour–depending on a few factors.

• Age
• Type of work they are doing for me (how much skill is involved)
• Whether they are just starting to work for me (and are unproven at this point) or whether they have already shown themselves to be excellent workers.
• Whether they have a driver’s license (which also indicates that they would be older) but this changes some of what I can have them do and also the expectation I have of their responsibility level. Generally, if the teen is doing errands that involve driving, I also pay mileage (50 cents/mile).

Here are the kinds of tasks I’ve had teenagers do:

• Stamp, label, and stuff envelopes.
• Stamp & label postcards.
• Input addresses, etc. on the computer (update mailing lists and the like).
• Internet research (finding names & addresses, etc.)
• Delivering products (Paper Tiger software, for example).
• Put together packets of handouts for workshops.
• Collate notebooks of materials for workshop participants.
• Insert my business cards into letter openers.
• Make games that I was going to be using at workshops.
• Pick up cleaning, mail, books, etc.
• Assist me in my off-site storage unit where I keep workshop materials, books, and other items that I use in my business (so helping clean things, move things, get items in order, etc.)
• Stand at my Pitney Bowes machine and run lots of envelopes through there.
• Burning CDs
• Basic website maintenance

So you can see, it’s quite a range–some is fairly low level and some is higher level.

At this point, I have not had them sign an independent contractor agreement if they are under 18, but I do have them sign their “hours” every week when they turn them in. I pay the teen weekly either in cash from my company’s petty cash account or I write a check from the company. Either way I can track it for expenses.

In every case of a young person I’ve hired, I know their parents (or one of their parents actually works for me and is “subcontracting” the work out to their own or neighborhood kids). I think knowing the parents is smart for a number of reasons; I also believe that parents would want to know YOU because their child will be working with you.

Hiring young people benefits you, your organization, and the teenagers. They learn responsibility and what it’s like to be an entrepreneur. Plus, they are earning money, which also helps them out!! As the teens you’re hiring prove themselves to you–then give them more responsibility and more money. Make them ask for a raise. That, all by itself is an important lesson, especially for young women.

Be sure to check with your own legal advisors as to what you should do in your situation and in your state. You want to be spending your time focusing on important tasks, not dealing with the IRS because you didn’t follow the correct procedures.

It has been just over a month since you participated in the ShoeBox-101 Teleseminar where you learned the basics of setting up your accounting system. It is now February, and I am nudging you to make sure that you have your file folders started, that you have completed your filing for January 2009, and compiled a simple, yet very important Profit and Loss Statement for last month. Yes…You can! Start with those basics and grow from here.It’s exciting that we are taking control of our own businesses while others are going nuts – Meggin’s recent workshop, “Staying Positive in a Freaked-out World” says it all. My business has expanded during the last few months, because every business owner needs to understand their financial statements and be aware of revenues and expenditures affecting the profitability of a business. I have been adding several free reports for you to download from my website www.marie-gibson.com and have a number more to complete (I’m hurrying).

I am also thinking about offering a free one-hour question and answer period in March for those of you who have some further questions. Please let me know if you are interested in this type of conversation, and if you would prefer a day or evening call.

Warm wishes for a very warm and prosperous new year!

Marie Gibson

Marie Gibson Management & Consulting, LLC.

Accounting Success-Simply!

www.marie-gibson.com

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