There are many questions as a small business owner that you should be asking yourself. Are you making the right amount of money? How much time are you putting into good results? Are you working hourly or per project? The biggest question of all is when is it the right time to raise your business rates?
When Should You Raise Your Business Rates?
This is definitely a difficult question to address. A huge fear is raising rates could result in losing clients. It’s a challenge that’s worth facing. While it is important for your clients to be on board with the price change, you have to first convince yourself that your services are worth the cost. When you raise your business rates, it’s not about being greedy — it’s about being fair to yourself and the value you provide.
Shift Your Mindset Before You Change Your Pricing
First and foremost, you have to know your customer. Did they come to you for quality work? If they did, raised rates won’t affect them. The customer that is always concerned about price is normally the one that makes your work difficult. A rate increase can help weed out those misaligned clients and make room for more aligned ones. It’s important to market your business by valuing quality over quantity.
What Are the Benefits of Raising Rates?
You’ll make more money.
If you haven’t already done so, write down the amount of work you do versus the amount of money your business receives annually. It’s surprising to see how much time often goes unpaid. Your time is valuable — and you shouldn’t be working for free.
You’ll earn more respect.
An artist becomes an artist when they’ve sold their first piece. That first sale may not break the bank, but it builds credibility. As demand grows, the price goes up. Your services are no different. With every success and satisfied client, your value increases.
You’ll grow your brand presence.
Oftentimes, people associate higher prices with higher value. That’s not always true — but it’s your job to show them that your new rate is justified. Upgrade your branding, streamline your offerings, and ensure that your digital presence reinforces your worth.
If you don’t value your product, no one else will. So take the leap — raise your business rates with confidence and back it up with excellent service.