Professional Documents
Culture Documents
GU I D E
TIPS, TRICKS & TOOLS
TO RAISE YOUR RATES AND
EARN WHAT YOU’RE WORTH
SUPERCHARGE YOUR LIST 1
CONTENTS
3
STEP
STEP 2
Assess your value
STEP
Common pricing 4
mistakes and what to
do about them
Assessing your
true worth
5
STEP
STEP 6
Knowing when
STEP 7
it’s time to raise
Asking for the raise
your prices
When it’s time to
change your business
model
U R R AT E S
RAIS E YO
What’s important, however, is whether you exactly what to charge, so this is where
are charging what you’re worth, and whether we’re going to start. Understanding what
your rates can sustain the lifestyle you desire. you’re worth will quickly tell you whether or
Nothing eliminates feelings of guilt, worry or not your fee hike is absurd, well-deserved,
worthlessness more quickly than knowing or long overdue.
TIP
Don’t be afraid to match your client’s argument for knocking down your
price. I once told a client, ‘I won’t compete with Competitor X as we don’t
offer cookie cutter solutions. Our offering is bespoke and our customer
service is excellent.’ He chose us.
You can also eliminate uncomfortable situations such as clients asking for
unrealistic payment terms by letting them know your payment terms up
front. Either put them on your website under a pricing tab, or note them—
very visibly, highlighted in some way—right on the estimate.
And it is true, if you have allowed people First, it’s important to understand that
to build their own businesses on your low experienced clients know they are
prices, they are not going to be happy getting the steal of the century. When
about a change. Some of them may even you raise your prices, some will know this
leave you. But that doesn’t mean you and protest anyway—they may even be
have to put up with eking out a barely- unhappy about a price increase—but the
sustainable living. reasonable ones will accept it, once they
realise you mean it. That’s because you’re
good at what you do, and spending time
WE’RE GOING and resources trying to find someone else
Not tracking your time • If you don’t track your time, you will never realise
exactly how much money you are losing per hour
(there are many time-tracking apps around such as
Toggl that can help you keep track.)
WHAT DO YOU DO
ABOUT IT–AND HOW CAN TIP
Estimated Worked
At those rates, if you let scope creep take The more inexperienced the client,
you out to 40 hours of your time, you’ve the greater the scope creep is likely to be.
given your client $2800 worth of free That is why, when you are charging per
services, and that’s $2800 you could have project, it is vital to (a) set limits and (b)
been earning with another client. accurately estimate the amount of time
the project will take.
3. see exactly how much of your time was billable—and how much wasn’t
And because you know the rise is well-deserved, you are less
likely to give off signals of nervousness or uncertainty to your client.
Betty would eagerly pay top dollar for What Smithy’s Seafood Palace should do
sand crab lasagne, if this was a restaurant, is serve the most amazing seafood dishes
whereas Veronica wouldn’t touch the dish if possible—and put all their effort into
you paid her a thousand dollars. Therefore, attracting and retaining customers who
the perceived value of sand crab lasagne is adore seafood.
extremely high to Betty—and worse than
That’s why bending over backwards for
worthless to Veronica.
clients who don’t appreciate your services
Should Smithy’s Seafood Palace take crab and want them at ridiculously low prices—or
off the menu because Veronica announces waiting for your client to “appreciate” you
she can’t stand the smell of the seafood, and and voluntarily give you a raise—are not
won’t be back? Of course not. good strategies!
TIP Give the best value you can give—to the right
client who appreciates it.
You know you have a quality offering. Why
would you offer something at less than it’s
actually worth? Being strong on your pricing
says you have confidence in the product or
service you offer and that you will stand by it.
• you have a waiting list • you have added value to your services
• the cost of living has increased • your cost of doing business has
dramatically increased (usually because you have
added valuable features to your
business).
• old habits
• old tapes
•
•
the way your clients treat you
your baggage.
DON’T APOLOGISE.
No matter what you feel, decide on one of
DON’T EXPLAIN. JUST
these strategies and draft your text asking STATE THE FACTS.
for the raise. Then go through and review
that text, removing any phrases or words
that are (a) negative, or (b) hesitant.
In a situation like this, announce to any long- For example, if you’re a writer producing
term clients that you are going to be raising regular work for a client, you can offer to cut
your rate to $100 an hour for new clients. small projects and keep the monthly rate the
Before your long-term client has a heart same. Point out that rather than paying you
attack, soften it a little by letting her know $500 a post to write their blog posts, they
you will make an exception for her, based on will be free to outsource these to writers
your long history and the fact you work well who charge less and keep their costs down
together and you value her business. that way.
Whatever your solution, your aim should you need to explain why your services
be to make your client feel they are going to warrant a price hike, do so in as positive
receive even greater value. Keep the focus and straightforward a manner as possible.
on your client and their business—not on Don’t focus on the incredible value you’ll be
your needs. providing (that’s talking about you). Focus
instead on the results you can help them
This is different from explaining why you’re
acquire for their business.
raising your rates, which puts the focus back
on you justifying yourself. If you do decide
• be straightforward
Whatever your solutions, these should leave neither you nor your client
feeling taken advantage of. Knowing your true value will give you the
confidence to make raising your rates a painless process—and align your
value with your ideal paying client, at the best market rate.
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