January 26, 2021

When, Why and How to Increase Your Rates

Show Notes

Let’s talk about money, money, money! In today’s episode, we’ve outlined five main reasons for when and why it might be time to raise your rates, plus a few pointers on how to go about doing so:

  1. You’re booking out consistently
    • This is a sign that not only are your services in high demand, but you’ve also hit an income limit and will have to start turning down potentially amazing opportunities. Start focusing on quality over quantity, and give yourself the hard-earned raise you deserve!

  2. You’ve invested in new tools, software, etc.
    • As the cost of doing business rises, you have to account for those expenses so you don’t start losing money. Plus, higher prices are usually equivalent with a more premium service – so if your new tools, software, etc. mean a better experience for clients, don’t just give that additional value away for free.

  3. You invested in education, advanced skills, training, etc.
    • When you learn new skills, certification, etc. that directly benefit your clients and enhance their experience – that’s value that needs to be accounted for! But word to wise: please actually take the time to implement your new skills before raising the rates on this one. New skills take a bit of time to hone, and you want to make sure that additional value is truly there before you start charging for it!

  4. You’re delivering more value, so clients are gaining more ROI
    • Simply put, as you better your process and services, your clients will likely start seeing better and better results (practice makes perfect, after all). Make sure you’re actively tracking client results so you have hard data to support those higher rates.

  5. You’re priced way below the market value for your industry, and competitors are charging significantly more than you
    • When you’re first starting out, you’ll likely be lower on the totem pole, and that’s to be expected. It’s rare that you’ll immediately have a robust portfolio and lots of ROI to share just yet, and you may still be honing your process and skills. As you become more experienced though, lower rates can actually deter your ideal clients especially if you’re significantly below the market value, and insanely cheaper than competitors. Think of it this way – do you really want to go to the cheapest plastic surgeon? Probably not!

When it comes time to raise your rates, let your current clients know in advance (obviously, you can’t change any existing contracts though) – and consider offering a limited time window to book a project at your current rate too! Don’t forget to also update your website and any other places that your current pricing may be listed. And finally, be wary of promising anything for potential projects – you don’t want a client coming back expecting a promised rate, only to be told you won’t be honoring it.

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When, Why and How to Raise Your Rates

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