Is the way you think about yourself putting a glass ceiling on your chances of achieving success and happiness in life?
According to James Klobasa, the answer is almost certainly, YES.
Klobasa, a business mentor and the best-selling author of The Expert’s Handbook, believes that many people mistakenly think that they are only worth the annual salary they earn at their 9-to-5 job.
Others think that they are only worth the amount that someone is willing to pay for their product or service. And some people even think that they are only worth the amount that their competitors are charging.
Although this may be accurate in some cases, Klobasa said that people who have the ability to spot opportunities are actually worth much, much more.”
In fact, Klobasa believes that understanding your true value is one of the keys to creating wealth and designing the life you want.
What Are The Symptoms of Low Self-Worth?
When people are suffering from low self-worth, they fail to look beyond the tangible value of the goods or services they are selling. This often results in them selling cheap,” Klobasa said.
Here’s an example:
Joe, a business owner with low self-worth, is selling a wealth-creation training package for $1,000. He bases the price on the costs of tangible goods, such as CDs, online materials and books, while only tacking on a little bit extra for the time it took to create the materials.
However, Mike, a business owner with high self-worth, bases the pricing for his similar wealth-creation training package on the true value for the user. Mike sets his price at $10,000 because he understands that the training package is delivering the knowledge and information required to achieve financial freedom.
He knows that financial freedom, security and all the trimmings associated with that lifestyle are priceless—and certainly worth much more than the physical books, CDs and online materials.
The difference between Mike and Joe is that Mike is able to see beyond the physical goods and sets the price based on the results that his customer is likely to achieve. Mike knows that the more his customer invests, the more likely his customer will be to take action.”
Perhaps most importantly, Mike also understands that he is giving his customers the ability to change their lives. He knows that his training package can deliver big results for the motivated customer, so he is able to justify a higher price.
Just as a high self-worth business owner looks beyond tangible goods, a high self-worth property investor looks beyond the physical property and understands that selling a house is about selling a lifestyle to a specific type of buyer.
How Can Low Self-Worth Affect My Success?
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Low self-worth can have serious consequences that extend far beyond your bottom line,” Klobasa said.
Based on the previous example, it’s a no-brainer that Mike is going to make much more money than Joe. Sure, Joe might initially sell a few more training packages than Mike due to the lower price, but his low self-worth and too-cheap pricing will have other consequences.
In addition to having to sell 10 training packages to every one of Mike’s to match his earnings, Joe’s lower pricing will also attract a lower-quality customer.
Because Joe’s customers might not be all that serious about wealth creation, they will probably not get the best results after purchasing his lower-priced package. Bad customer results can lead to bad reviews, which can start a vicious cycle that causes decreased sales and lower profits.
On the other hand, Mike’s higher pricing will attract customers who are serious about wealth creation. Mike’s customers are making a large investment in his product, so they are more likely to be willing to put in the work required to reap the maximum benefit.
When Mike’s customers eventually reach their goals, they will tell all their friends about his product and send his sales through the roof.
The lesson here is that the more you value yourself and your product or service, the more you can charge—and when you charge more, you attract better customers.”
According to Klobasa, your customers will achieve better results when you attract better customers. And, as any business owner knows, better customer results equals more business and increased profits.
As property investors, when we understand what the market wants, we have an opportunity to find an undervalued property and deliver it to the buyer by adding a higher perceived value than the actual cost invested.
A property investor that can realise this disparity has a high level of skill and demands a higher value return on their time.
What Can I Do To Improve My Self-Worth?
If you are suffering from low self-worth, the best thing you can do is work on understanding your true value.”
Because this can be tough to do on your own, Klobasa recommends hiring a business coach to help you. “Hiring a coach can help to push you out of your comfort zone,” Klobasa said. “Although you might not like your first month or two of working with a coach, it is a very powerful experience.”
In addition to asking some tough questions, your coach will help you determine what products, knowledge or expertise you can monetise and provide recommendations about how you can sell it effectively, Klobasa said. Your coach will also help you to identify your target market and understand how to best meet their needs.
After you have a full understanding of your target market, you can decide how to put forward the most effective message about what you can deliver to your potential customers and set your pricing according to the real value of your product or service.
For help understanding target markets and attracting quality buyers, property investors might want to seek out an experienced mentor or access the wide array of resources available through the Property Resource Shop.