Many of us struggle with raising our prices and charging enough money.
How do you know it's time to raise your fees? Here are three great indicators.
1.
You haven't raised your rates in two years If you haven't raised your rates in two years, raise them right now, by at least 6%.
(I vote you raise your fees by ten percent!) You have to raise your rates regularly simply to stay up with inflation.
And inflation runs about 3% a year, give or take.
If you don't raise your rates regularly, you run the risk of seriously falling behind financially, and then being in the awkward position of having to make a large rate-increase.
(And yes, this can be done!) You can raise your rates moderately once a year, or raise them more significantly every two years.
But don't wait beyond two years.
Many of our salaried friends get a cost-of-living adjustment once a year, if not a raise.
Make sure you do the same.
2.
Your clients are telling you what a great deal you are When a client says, "Wow, you should charge more!" or "I can't believe what a good deal you are!" or "Gosh, it feels like I should pay you more", the universe is sending you a flashing neon sign that it is time to raise your rates.
When your own clients mention that they would be willing to pay you more money, you are definitely under-priced.
Remember, not everyone should be able to afford you.
Your business is not a charity.
You are in it to make money, as well as help people.
And when the people you help tell you what a great deal you are, take it as a sign that they would be willing to pay more for your fabulous service.
If you've had more than one client mention this in the last year, raise your rates by ten percent right now.
3.
You have very little price-resistance As Harry Beckwith, author of Selling the Invisible says: If everyone can afford you, you aren't charging enough money.
If no one can afford you, you are charging too much.
So how much should you charge? Beckwith suggests that you should set your price so that about 20% of your prospects don't hire you because your price is too high for them.
This is "price-resistance.
" Remember, not everyone should be able to afford you!!!If everyone can afford you, you definitely can raise your rates, perhaps significantly.
Now if you are losing about half your prospects because you are too expensive for them, that's too much.
Aim for about 20%.
Beckwith also reminds us that abut 10% of all people balk and walk away when it comes to price.
Perhaps they weren't serious buyers of your service, it is out of their budget, or they don't trust you.
Who knows! But you simply can't expect to close every sale.
So if you don't even have 10% price resistance, then it's definitely time to raise your rates.
Remember, not everyone should be able to afford you.
How do you know it's time to raise your fees? Here are three great indicators.
1.
You haven't raised your rates in two years If you haven't raised your rates in two years, raise them right now, by at least 6%.
(I vote you raise your fees by ten percent!) You have to raise your rates regularly simply to stay up with inflation.
And inflation runs about 3% a year, give or take.
If you don't raise your rates regularly, you run the risk of seriously falling behind financially, and then being in the awkward position of having to make a large rate-increase.
(And yes, this can be done!) You can raise your rates moderately once a year, or raise them more significantly every two years.
But don't wait beyond two years.
Many of our salaried friends get a cost-of-living adjustment once a year, if not a raise.
Make sure you do the same.
2.
Your clients are telling you what a great deal you are When a client says, "Wow, you should charge more!" or "I can't believe what a good deal you are!" or "Gosh, it feels like I should pay you more", the universe is sending you a flashing neon sign that it is time to raise your rates.
When your own clients mention that they would be willing to pay you more money, you are definitely under-priced.
Remember, not everyone should be able to afford you.
Your business is not a charity.
You are in it to make money, as well as help people.
And when the people you help tell you what a great deal you are, take it as a sign that they would be willing to pay more for your fabulous service.
If you've had more than one client mention this in the last year, raise your rates by ten percent right now.
3.
You have very little price-resistance As Harry Beckwith, author of Selling the Invisible says: If everyone can afford you, you aren't charging enough money.
If no one can afford you, you are charging too much.
So how much should you charge? Beckwith suggests that you should set your price so that about 20% of your prospects don't hire you because your price is too high for them.
This is "price-resistance.
" Remember, not everyone should be able to afford you!!!If everyone can afford you, you definitely can raise your rates, perhaps significantly.
Now if you are losing about half your prospects because you are too expensive for them, that's too much.
Aim for about 20%.
Beckwith also reminds us that abut 10% of all people balk and walk away when it comes to price.
Perhaps they weren't serious buyers of your service, it is out of their budget, or they don't trust you.
Who knows! But you simply can't expect to close every sale.
So if you don't even have 10% price resistance, then it's definitely time to raise your rates.
Remember, not everyone should be able to afford you.