How I Turned a $5K Budget into a $21K Project: The Power of Knowing Your Worth

When you're building a consulting practice, how you price your services isn't just about the dollars and cents. It's a reflection of how you view your own expertise, the value you deliver, and ultimately, what you believe you deserve.

I want to share a story from my early consulting days that fundamentally shaped my approach to pricing and client relationships. It's a story about turning a $5,000 budget into a $21,300 project, and the powerful mindset shifts that made it possible.

The Initial Opportunity: A $5K Project I Almost Rejected

After leaving my role at Uber, where I helped launch Uber Freight and led the automation team for over two years, I began my consulting journey with a fortunate first client. They paid $25,000 monthly for about 25 hours weekly of my expertise - setting a high benchmark for what my time and knowledge were worth.

So when I received an opportunity through Catalant (a consultant marketplace) to pitch a project for a Series C logistics company with a $5,000 budget, my initial instinct was simple: decline. The proposed four-to-six-week project didn't align with the value standards I'd established.

My response wasn't rude, but it was clear - I wasn't interested at that budget level.

The Opening: "What Budget Would You Need?"

Rather than simply accepting my rejection, the potential client asked an important question: "What budget would you need to do this work?"

This question created an opening - an invitation to propose what I actually thought the work was worth. I explained that my fees would be "substantially more," and I told them exactly why:

They would get far more than the deliverable they requested. Rather than just producing a deck aligning metrics between teams, I would deliver a comprehensive strategy. I'd work with multiple departments. I'd establish forward-looking metrics. I'd solve their actual problem, not just fulfill a narrow project scope.

I was honest: I couldn't in good conscience charge only $5,000 for work that would deliver significantly more value. But if they were open to a much larger budget, I'd submit a detailed proposal.

Their response? "Try us."

Creating a Value-Based Proposal

I crafted a proposal outlining exactly what they would get - the specific steps I'd take, the teams I'd engage with, and most importantly, the outcomes my work would generate. I didn't add unnecessary elements; I included what I genuinely believed they needed to solve their underlying problems.

The price tag: $21,300.

Why the specific number? I'm a believer in odd, precise numbers. They feel less arbitrary than round figures and suggest careful calculation. But more importantly, this represented a fee I felt properly valued my contribution.

I sent the proposal expecting possible negotiation or rejection. Their response was simply: "We're in."

When Things Don't Go According to Plan

This story doesn't end with the initial agreement. About halfway through the project, I recognized a problem: we were completely off timeline. What was supposed to be a 4-6 week project was stretching much longer due to constant feedback and changing requirements.

In fixed-price projects, clients have little incentive to finish on time, while consultants are motivated to complete the work as efficiently as possible. Recognizing this misalignment, I approached the client directly:

"We have a real problem here. We either need to change the scope or increase the budget because we won't finish in 4-6 weeks on this trajectory."

We agreed to reduce the scope to ensure timely completion. Afterward, I proposed a monthly retainer of $5-6K for a few hours of weekly availability. They accepted for three months, and interestingly, never used my time - though they paid in full as agreed.

The Mindset That Makes This Possible

This experience taught me several crucial lessons about the mindset required to command premium rates:

1. Know Your True Value

Your worth isn't determined by the hours you work, but by the outcomes you deliver. Whether it's increased revenue, cost savings, efficiency improvements, or problem-solving expertise, understand precisely how your work impacts a company's bottom line.

2. Learn to Say "No"

Many consultants accept below-value opportunities because they fear turning down work. But each underpriced project prevents you from taking on appropriately valued work. Sometimes you need to "break up" with low-paying clients to create space for better opportunities.

3. Connect Your Work to Revenue or Profit

In today's challenging market, successful consultants align their work directly with either top-line revenue or profitability. Even if your function seems distant from these metrics, find the connection.

For example, if you're in HR, quantify how improved culture and retention translate to concrete financial benefits: "If your retention improves by 10% over two years, you'll save $X in recruitment and training costs."

4. Project Confidence, Even Through Impostor Thoughts

We all experience impostor syndrome at times. The difference is whether you let those thoughts control your actions. When approaching higher fees, your confidence (or lack thereof) is immediately apparent to potential clients.

Speaking with certainty about your value is compelling. Speaking tentatively about your worth sends clients running.

5. Base Confidence on Evidence

My confidence in charging $21,300 wasn't baseless - it came from knowing I'd already successfully done similar work at Uber. I had concrete evidence of my ability to deliver.

Document your wins. Collect testimonials. Measure your impacts. Build an evidence base that lets you confidently say, "I've done this before, and I can do it for you."

Applying This to Your Practice

If you're currently earning less than you'd like - perhaps making $10K monthly across three clients while working 30 hours weekly - you have a clear choice:

1. Significantly increase your rates with current clients
2. Find entirely new clients who value your work appropriately

Either path requires the difficult step of leaving behind what's comfortable but inadequate. Like ending a mediocre relationship, there's short-term pain involved in moving away from underpriced work. But without this discomfort, you'll never discover what's possible on the other side.

Getting Past Mental Blocks

If you struggle with confidently charging what you're worth, consider investing in mindset coaching. This doesn't have to be expensive - coaches in training often charge accessible rates, or you can even use AI tools like ChatGPT as a thought partner:

"You're my mindset coach. I'm struggling to charge appropriate rates for my consulting. What limiting beliefs might be holding me back? What questions should I be asking myself?"

The Bottom Line

The difference between a $5,000 project and a $21,300 project wasn't just in the deliverables - it was in my willingness to:

1. Clearly articulate the value I would provide
2. Confidently ask for what that value was worth
3. Walk away if the client couldn't meet that value

This mindset has served me well throughout my consulting career, and it can transform yours too. Remember, your rates are not just about money - they're a statement about the value you bring to the table and what you believe you deserve.

What potential client conversation could you transform by knowing - and asking for - your true worth?

Mylance

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