How much money are you making from your business? How hard are you working for that money? Are you trading dollars for hours? These are all important questions to ask yourself and most often they lead to one important decision. It’s time to raise your rates!
Unfortunately many business owners struggle with this concept. They fear that raising their prices will make them lose money rather than make it. This is a mindset problem and one that needs to be overcome. The first person you need to be able to convince about a rate increase is you. 😉
Here are three areas to help you to see how raising your rates is a good thing…
Who’s Your Ideal Customer?
Is it someone who wants to get the world handed to them for less than a dollar? You know who those people are and you’ve probably dealt with them in your business. They’re not much fun to work with. They nickel and dime you at every opportunity and complain often. Raising your rates will automatically weed out these people for you. You won’t have to deal with cheapskates anymore. That doesn’t mean your new customers won’t want to get great value for their money. There’s a difference between wanting good service and products versus being cheap. Raising your rates helps you attract your ideal customer.
Calculate What Your Worth
Many business owners fall into the trap of essentially working for free. When you break down how much you earn on an annual basis and the amount of work you actually put into that year, you might be astonished.
If you work 40 hours a week and earn $50,000, you’re only making $24/hour. Let’s face it, many business owners put much more time than that into their business and make less. Calculate what your time is worth and then charge accordingly. You’re supposed to make money when you own a business. It’s a good thing.
What Does Your Competition Offer?
When comparing services or products, people naturally assume that the higher priced item is better – even when it isn’t. Of course, your product or service is better than your competition’s. Price competitively by charging more, then over-deliver. The over-deliver part is muy importante because that is the ingredient that will set you apart from your competition. Your customers will appreciate how you helped make their life easier. How you gave them the peace of mind they were hoping to get.
Take great pride in your products and services, now do yourself a favor and raise your rates! 🙂
If this concept intrigued you, then go start doing some research. Decide on one product or service to raise your rates, then work on another. Set yourself apart from your competition by providing a lot of value in your customer’s eyes, where your competition misses the mark.