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Name Your Price

Charging what you're worth

By
This story appears in the December 1999 issue of Business Start-Ups magazine.

It's said everyone has their price. But for entrepreneurs, it's not always easy to know what that price should be. Too high and you won't attract customers. Too low and you can't cover your expenses.

Many entrepreneurs undervalue their products or services. Elizabeth Allen, 31, founder and executive director of Awesome Advertising in Kansas City, Missouri, was shocked to learn that farming herself out as an independent copywriter at a rate of $50 per hour was well below the agency norm of $125. Part of the problem was she didn't know enough about her market; the other was that she didn't have the nerve to charge her clients more. Allen has since learned her lesson, one of many she shares in advising other entrepreneurs at the Kauffman Center for Entrepreneurial Leadership, also in Kansas City.

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