It’s never easy to put your prices up, but with the cost of living increasing, not to mention your ever-improving skill-set, it’s important to ensure that you are being paid enough for the professional services that you provide in your business.
Here are my top tips for increasing your hourly rate (or retained support package prices):
1. Know Your Worth – Before increasing your rates, it is important to assess the value of your services and determine an appropriate rate that reflects the time, effort and expertise you are offering. Don’t undersell yourself! Your knowledge and skills – and time – have inherent value, and your pricing needs to reflect this.
2. Research Competitors’ Prices – It’s also a good idea to do some research into what other people in your industry are charging, and what the average rate is for your specific skills. This will help you to set prices that reflect the current market value of your services.
3. Consider Starting With New Clients – It’s important to remember that clients may not be comfortable with sudden increases in rates, so it can be a good idea to start by increasing your rates for new clients and then gradually raising them for existing clients over a certain period of time. Remember that not all customers may be able to afford your increase, so be aware that some may need to give notice to end their contract period with you.
4. Think Long-Term – It’s important to think long-term when it comes to pricing; even if you can get away with charging lower prices in the short term, you should consider how these prices will affect your business in the long run. If you are undercutting competitors and charging less than you are worth, could this have a negative impact on your reputation, even if you are still delivering an excellent quality of service? Some people are reluctant to opt for ‘cheap’, even if it is cheerful!
We hope that these tips help you to increase your rates, if appropriate, to give you and your business greater financial stability during these challenging economic times!