Keep your head up, and don't lower your rates.

"Fasten your seatbelts" Margo said in All About Eve, "It's gonna be a bumpy night."

I knew it was going to be a bumpy ride when I started my own business. I knew it was going to be a bumpy ride when the economy started tanking. Now, I make sure to wear my seatbelt.

When I was new to graphic design, freelancing while in college, I was just happy to have clients. So, I charged almost nothing and lost money. I fell victim to the"Oh I'll charge you whatever you think you feel like paying and if I don't make a profit, it's okay" trap. It took about a dozen clients and around $16,000 in lost income before I finally realized this business model wasn’t going to work.

With some experience under my belt, I started my own business. I knew it would be tough, but I jumped in headfirst. I began to realize that I'm a rare breed: graphic and web designer, writer, photographer, painter and project manager, and that my skills were in high demand. This greatly increased my confidence level in my own work. I finally stepped out of the"I'll just do this project for peanuts because I need it for my portfolio."  I started charging what I'm worth.

Since the election, I have stopped watching the news, save The Daily Show and The Colbert Report. If I can't laugh at what's going on around me at this point, then I don't want to know what's going on. I believe right now the economy and the news are feeding into a vicious cycle: the more we hear about the economy, the more fearful people become, and the more scared people get the less money they spend, which in turn makes the economy worse because no one is spending any money. I'm all for the free press, but at this point I'm beginning to think ignorance is bliss. Most TV commercials I see now are either for selling gold, learning how to use eBay to sell stuff, or returning a car in case you lose your income.

I work hard. I voted. I pay my taxes. I volunteer. I recycle. I've done everything I can do. I am reminded of the serenity prayer from the 12 steps: God grant me the serenity to accept the things I cannot change; the courage to change the things I can; and the wisdom to know the difference. Meditating, doing yoga, and repeating this over and over again is what maintains my sanity lately.

But now that I know what I'm worth, every day I have to face the idea of lowering my rates to get work. Lately, I’m hearing nothing but“I need a website, but I only have about $400.” I've lost projects to people who will work for $14 an hour. I can't compete with that. I can only assume these are people who have a rich spouse and the money they earn from graphic design is "spending money" for Nine West bags. Notice I didn't say Prada.

Recently, the post office removed several of the blue outgoing mailboxes from my neighborhood, including the one in my condominium complex, which comprises over 900 units. I spoke with the manager at my local post office, and asked her what was going on.“Is the post office going out of business?” I asked. Her response was “I’m afraid all I’m allowed to tell you is that yes, the post office is suffering from the effects of the economy, just like everything else.” The old saying I’ve grown up with: “Neither snow, nor rain, nor heat, nor gloom of night stays these couriers from the swift completion of their appointed rounds” has lost meaning. Even one of the few services we’ve all been able to count on is in jeopardy.

All around me, the prices of everything are going up. I went to buy epsom salt from Wal-Mart last weekend, so I could spend some me-time calmly soaking in the tub, escaping from the stress of the economy. The price jumped from $1.39 in December to $3.79 less than a month later. Are we returning to medieval times where people barter with salt?

My rates should be going up, because the price of everything else is. I have to pay more for socks and cat food, so why should my prices stay the same? And why on earth would I lower them? I don't live in an alternate universe where socks and cat food are cheaper for me than they are for my clients. My clients are freaking out that they also have to pay higher prices for socks and cat food, so they need a bargain anywhere they can find it. I don’t blame them, but unfortunately they bargain with me. They reluctantly shell out double for everything else, just like I have to, but many of my clients seem to see graphic and web design as having “soft” prices that can be molded to fit their budgets. They know they can't bargain with the grocery clerk or a mechanic.

If I give clients a discount, I lose money. If I keep my prices the same, I lose money. But here's the catch-22: if I don't lower my prices, I don't get clients. If I keep my prices low, I have clients but I lose money. But alas, I’ve learned that whining won’t help things. I know I’m not the only one struggling.

In the last month, however, I’ve noticed an interesting trend: everyone wants a website. I’ve gotten over 20 calls in the last two weeks from people looking for a way to promote their business online. My theory: in these troubled times, more and more businesses are realizing that anything they can do to get themselves noticed is worth pursuing, because they need more business. A website gives your company a constant online presence. So in light of all the woes of the financial markets, I am unexpectedly benefitting from the economy, at least for now (knock on wood).

I have become a spiritual person. I believe in myself. I know I am talented, passionate and I'm an smart, hard worker. I’m going to charge what I’m worth. I'm going to stick this out. I'm resourceful. I’ve learned that running your own business is a learning process, one where you continue growing.I have faith that I will pull through, and so will everyone else. Things will get better.

My lifelong approach to friends, dvds, clothes and furniture is that I'd rather have a few things that are really good quality, that I really love, rather than a bunch of junk that's not worth much to me. I'd rather have a few good clients who know what I'm worth, who respect me and my work and who understand that I am one of those few precious, high quality commodities. My design services are like taking a five day cruise on a luxury liner, versus a seven day excursion on a dirty fishing boat in choppy water. I treat my clients like gold, and I always go above and beyond to make them happy and produce brilliant design.

So until the prices of epsom salt, cat food and socks go back down, I will keep my head held high. In the immortal words of Saturday Night Live's Stuart Smalley (now Senator-elect Al Franken):

"I'm Good Enough, I'm Smart Enough, and Doggone It, People Like Me!"