If you’re asking, “should I increase my prices?” you probably should. If you have to question yourself, then you most likely need to consider increasing your rates. Here are 5 signs that you need to increase your prices:
You know its time to increase your prices if you’re always booked! If you find yourself always looking at a filled calendar or telling clients that you don’t have room to squeeze them in, it’s time to increase your rates. Being booked out is an amazing feeling and shows that you’re in high demand.
Increasing your rates will not mean that you will lose clients. It means you’re able to charge more, work less, and still get paid the same or higher.
Working a lot and being booked to capacity can lead to feeling overworked, burned out and exhausted. These feelings can lead you to resist your business and passion. Overwork doesn’t lead to success, setting boundaries does.
If you feel overworked in your business, you need to raise your prices so that you’re able to work less and still make money.
Have you ever had a client be surprised with how “affordable” your prices are? Or maybe a client has flat out told you that you should charge more. Your clients know best so you should trust and consider what they’re saying.
Never be afraid to ask your clients for their feedback. You can also send them surveys if you do not feel comfortable asking in person.
If you have an amazing customer satisfaction rate, it’s time to increase your prices. At this point, you’re doing more than just selling a service, you’re also selling value, so you need to be compensated for it.
Anyone in your industry can do what you do, but can they make your clients feel how you make them feel? Probably not. If you have clients raving about your services and always leaving your chair happy, it means you’re amazing at what you do. The better you become at your craft, the more you should charge for it.
This is one of the most important signs to listen to. If you notice that your costs start to exceed your profits, it’s time to increase your prices fasts.
One of the most important rules in business is to make sure your income exceeds your expenses. If your costs are higher than usual due to shortages, inflation, or a change in products, you need to increase your prices to compensate that.
If you’re doing any of the 5, it’s time to stop asking, “should I increase my prices?” and start charging! You deserve to charge and get paid what you’re worth!
Follow us on Instagram if you love this blog! We post business finance tips for service providers weekly!
August 27, 2020