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Are Sliding Scales Smothering Your Clients?

Offering clients a sliding scale can be like reminding an adult to wear galoshes. Is that really how you want to relate to the people you do business with?

Written Apr 08, 2008, read 443 times since then.

 

Where did Jewish mother jokes come from?

According to Wikipedia, Margaret Mead is to blame.

When Mead published the results of interviews with 128 European-born Jews, the popular media recognized an archetype in full bloom(Archetypes are stereotypes elevated to mythic status.)

Whatever the origin, the Jewish mother has become synonymous with an intensely loving, but controlling to the point of smothering, parent who engenders guilt in her children through the suffering she undertakes on their behalf.

And all too often, that’s what we do to our clients when we offer them a sliding scale.

Like reminding your children to wear galoshes, offering a sliding scale seems kind. Thoughtful. Caring. But when the child is an adult, both are intrusive rather than supportive.

Why, then, do so many independent professionals cling to the sliding scale?

The seductive appeal of the sliding scale
Sliding scales have a lot of appeal. For one thing, they delay the moment of truth, when we must declare what our work is worth.
For another, sliding scales seem to give power to our clients. (As you’ll see, that’s questionable.)

Sliding scales let us charge as much as more experienced colleagues and as little as less expensive competition. But the most seductive characteristic of the sliding scale is that it lets us be the good guy.

And that’s why it doesn’t work.

How sliding scales turn clients into dependents
As a service professional, you have a job, and it’s not to mother your clients.

Your clients have mothers. They aren’t looking for someone to make sacrifices that make you look good and put them in your debt.
Now, I know that putting people in you debt is not your motivation. In fact, you probably use a sliding scale in part to avoid having clients  owe you more than they can pay.

But it rarely works. By and large, people feel obligated when you do them a favor. That can work out in the short run. But if you have long-term relationships with your clients, a growing sense of obligation can fester resentment on both sides.

When that happens, dependency turns into co-dependency and nobody wins.

But what will they think?
When you are self-employed, it’s easy to get caught up in what other people think. It makes a kind of sense. You need people to approve of you if you’re going to get any clients, right?

Well, actually, no.  

Approving of yourself is your job. Until you face that moment of truth, no amount of outside approval will convince you that you are worthy of your hire.

Until you face that moment of truth, part of your attention is going to be diverted from your clients while you worry about what they think of you.

And until you face that moment of truth, you’re making your clients responsible for your self-image, like a Jewish mother who looks to her children to make her life worthwhile.

It’s not smart, and it’s really not fair.

Caring and worrying are not the same thing
Still, there is a healthy and legitimate concern we need to address, the concern that we not abandon our commitment to caring about others, clients or not.

But watch what happens when you begin to worry about this. For my own part, it goes something like this:

  • If I don’t offer a lower rate, they’ll think I don’t care.
  • But darn it! I can’t afford to have everyone pay me the lowest rate.
  • Besides, it seems like the clients who pay least are the clients who complain the most.

At this point, the inner dialogue goes on of two ways,

  • Door #1: I’ve got to make a stand here. People are just going to have to understand that I need to make a living.
  • Door #2: I just can’t stand the idea of them thinking I think I’m too good for them.

It doesn’t matter which door I step through. On the other side I shut  down a little or a lot to protect myself from either their criticism or their need.

That’s worrying, not caring.

We don’t need to be protected from what we care for. We can be with someone else’s pain or joy or anger with out hearts and minds wide open. Since we’re not taking on their experience or judgments, we don’t need to guard against them.

It’s a lovely way to relate to people, clients or not.

What to do instead of using a sliding scale
I’m clear that sliding scales don’t work, and I recognize that there are times when your fee schedule doesn’t work either. Here’s why that’s not a problem.

What you charge is your business. What your clients pay is their business.

When you stay in your business, it doesn’t get crowded over there in your clients’ business. Without your intrusion, they might notice that they are not able or willing to pay your rate. It’s possible that they will ask if you are open to a different arrangement.

Then it’s your business. Are you open? Staying out of your clients’ business, go inside and find out. (Sometimes it’s helpful to say you’ll get back to them, not to delay answering, but to give yourself space to find out what is right for you.)

Here’s the key: go into this conversation without knowing what you are going to say.

When someone asks your rates, tell them (you know the answer).
When someone asks you if you are open to something else, go in and find out. How can you know your answer in advance? It’s a new question every time. Let go of any fantasy about being consistent* or predictable.

When you practice not-knowing in this way, you remain open and available to the other person regardless of the final outcome. Again, it’s a lovely way to relate to people.

If you still insist on a sliding scale
I’m a realist, and I suspect some of you aren’t ready to give up the sliding scale. Here are some guidelines for making the best of it.

Make the sliding scale available to a specific portion of your client list. For example, if you see 20 clients weekly, allocate 5 clients to the sliding scale. You don’t need a full calendar to do this. Just decide on the maximum number of sliding scale payees you can take on and stick to it.

Create a waiting list. If all 5 sliding scale slots are full and a 6th person requests sliding scale, put them on a waiting list for the first available slot.

Set a specific time period for the sliding scale agreement. Let your sliding scale clients know that at the end of that period they will be expected to pay the full fee.

Clients, like children, are a blessing. Both you and they will see it that way if you leave the caretaking to their mothers.

* A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines. ~Ralph Waldo Emerson)

Molly Gordon

How do you succeed at self-employment when business feels like an alien world? Subscribe to Authentic Promotion, a free ezine that shows you the way. http://www.authenticpromotion.com/

Learn more about the author, Molly Gordon.

Comment on this article

  • Nancy Newman
    Posted by Nancy Newman, Kirkland, Washington | Apr 09, 2008

    Hi Molly,

    An interesting, thought-provoking article.

    I was attracted to your topic because I have used sliding scales for a number of years with seeming success. Your comments about how they "delay the moment of truth," and created a sense of obligation intrigued me. I also liked your discussion about what I charge being my business and what they choose to pay, being their business. I like the idea of being open to negotiation if requested, vs. assuming negotiation will be needed and setting the scope in advance.

    I was a bit put off by the first few paragraphs. I felt rather chastised - particularly with references to being "controlling," "smothering," and "intrusive." But mostly because I did not relate to your descriptions of the difference between worrying and caring. My train of thought about using sliding scales does not resemble the one you described.

    For me, using sliding scales came NOT from my concern or caretaking of clients, but rather from my own panic and desperation about getting business. I started using them just after the dot.com bust, when many people's and organizations' fortunes and disposable income took a significant hit and it seemed like I needed to adjust my fees to accomodate that reality - but not for everyone. Before that period, I never had any issues with my sense of worth regarding fee setting. I set fees according to "the going rate" at the time. But then times changed, and I've been waffling ever since.

    I have found Mikelann Valterra's work (a Biznik) on Setting and Raising Your Rates enormously helpful in grounding my thinking about how I move forward on this issue. Your article has now contributed to my thinking as well.

    Thank you!

  • Anne Hoff
    Posted by Anne Hoff, Seattle, Washington | Apr 09, 2008

    You raise many good points, Molly. I find that clients who cannot afford my fee will ask if I can be flexible, and then I can consider that on a case-by-case basis. That's better for me than leaving it up to people's psychological vagaries - as those will come into play with a sliding scale as much as economic need.

    Money brings up so much stuff for people that is outside what your service is worth and what people can afford. Also, with a sliding scale many people will automatically pay at the low end regardless of their life circumstances. That's just how some people are. I know business people who do have a sliding scale, and then wonder what's up when clients paying at the low end drive up in the new Lexus or tell them about their trip to Europe or vacation home. Conversely, when I go to restaurants with friends, I find that the people who tip most generously often have the least money (and have often been waitresses themselves).

    So as you say, a set fee is asking for a meeting in a mature place.

  • Hsuan-Hua Chang, PCC, MS
    Posted by Hsuan-Hua Chang, PCC, MS, Seattle, Washington | Apr 09, 2008

    Molly,

    Thank you for sharing your thoughts on the topic. It seems like there is a story connecting the sliding scales with certain drives and certain results. I will have to chew on them before I am convinced. :)

  • Danny Bronski
    Posted by Danny Bronski, Seattle, Washington | Apr 09, 2008

    I enjoyed the article, but I'm not quite sure what a sliding scale is in this context? Is it charging different rates for the same work or is it basically allowing the client to pay what he or she thinks the service is worth?

    To the former, I say adopt the following philosophy when clients whine for a discount -- just tell them that to do this is basically stealing from your other (read:good) clients.

    To the latter, I say -- sophisticated clients actually tend to overpay if you give them an option of paying you what they think you are worth. This is a complex topic, but shifting risk from a client to you should (i.e. if you execute it right) be profitable for a service provider.

  • Molly Gordon
    Posted by Molly Gordon, Suquamish, Washington | Apr 11, 2008

    Nancy - I am sure you are not alone in using sliding scales (in Danny's words, charging different rates for the same work) because they are afraid of not getting clients. And I had not realized how my language might appear to be an attack on folks in that situation. Thank you for pointing it out.

    My experience is that choices I make our of fear come back to bite me. I get plenty scared. :-) And I've learned (sometimes) to breathe and wait until the fear settles so I don't make rash decisions.

    The message I convey when I set prices based on fear of losing business is that I don't believe in my work. That can become a self-fulfilling prophecy. I undercharge, eventually underperform (or make mistakes under pressure), and thus prove my lack of worth.

    In my view, you can't go wrong using Mikelann Valterra's work as a guideline.

  • Molly Gordon
    Posted by Molly Gordon, Suquamish, Washington | Apr 11, 2008

    Anne, I have had the same experience. I used to offer scholarships, pro bono work, and sliding scales. Now I do not. If someone wants the work and asks if there is any way we might negotiate the cost, I'm open. I have a great deal of respect for people who ask for what they want.

  • Molly Gordon
    Posted by Molly Gordon, Suquamish, Washington | Apr 11, 2008

    Hsuanhua,

    Yes, I have noticed that story.

    I don't know that the sliding scale can be perfectly correlated with given drives and results - certainly not in every field. My experience coaching indie business people and artists is that there do tend to be certain themes behind what they charge and the quality of work they attract and quality of life they enjoy.

  • Molly Gordon
    Posted by Molly Gordon, Suquamish, Washington | Apr 11, 2008

    Danny, I'm with you!

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Article tags

  • pricing
  • fees
  • sliding scale
  • small business
  • independent professional
  • rates

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