Let me guess: you’ve been thinking about raising your rates but thinking about it as far as you’ve gotten…
This can be a costly mistake in business. Why? Well, most of your creditors raise their rates yearly to keep up with inflation. If you are not at least keeping up with the rising cost of doing business then you are headed for financial and physical burnout because you will have to work longer hours this year to make as much as you made last year.
If it’s been over a year since you’ve last increased your rates here are four words of advice to help you over the rate increase hurdle:
Raise your rates yearly.
I know. Asking for a raise is hard. A lot of us experience fear that our clients will leave when we raise our rates or at the very least that our clients will give us a hard time about it. This rarely happens though. Most clients will see your raising your rates as a reflection that you respect yourself by charging what your time is worth. That said, raising your rates is worth any resistance you may have about taking action and actually doing it. Trust me.
Let me share with you a secret that may actually cause you to get excited about raising your rates:
Let’s suppose that you have 10 Monday-Friday dog walking clients. It’s been at least a year since you’ve raised their rates (using the ‘raise your rates yearly’ rule above) so you decide to raise your rates. Most pet sitters will raise their rates $1 or $2 a year. (Since rates and rate increases vary across the country only you will know what will be the best rate increase for your existing clients.)
Let’s say you raise your 10 dog walk clients $2/per walk:
That’s $10/per week MORE per client.
That’s $40/per month MORE per client.
That’s $100/per week MORE for all 10 clients.
That’s $400/per month MORE for all 10 clients.
And yes, you guessed it…
That’s $4,800/per year MORE simply for raising the rates of 10 dog walking clients $2/per walk.
All for nothing! No extra dog walking, no extra marketing, no nothing. Well, not nothing…you had the courage to raise your rates!