I know, I know, we’re all priceless gems! Nobody can do what we do, right?
It’s great to have a positive attitude about your skills and your business, however we do have to do a reality check once and a while.
Are you getting paid what you’re worth? What is the value of your products or services? Are you making enough to cover your expenses? Is there anything left over after that?
There are a couple of instances that may be tip-offs that you’re not charging enough, and this applies to any type of small business:
- Your clients tell you that you don’t charge enough – yes, this actually does happen! Sometimes your clients are so happy with the quality of your work that they just can’t believe their luck when they see their invoice. If they believe that the product or service that you provide is so fantastic that you should be charging more, perhaps you should be!
- You are super, super, super busy – many a business coach will tell you that if you are crazy busy with new clients, chances are you aren’t charging enough
- New workers in your industry charge the same or more than you do – every once and while you should do your research and check to see what your industry standards are. Have you fallen behind? How much are the newbies charging?
If any of these tip-offs sound like you, it’s probably time to raise your rates. It’s a scary prospect, I know, especially if you’ve never done it before, but it’s a necessary part of business. Your costs do go up, industry standards change, and so you must follow.
You may be afraid of losing clients if you raise your rates, but consider this: those that truly value your product or your service will most likely not blink an eye. Just be sure to do your research beforehand, and try not to do anything too shocking like raising your rates by 50% all in one go! In fact, you should be doing research every year to make sure that you’re in line with your industry, and so you may want to implement small rate changes every year. However you do it is up to you.
So, take time today to sit down and re-evaluate the value of your products and services, and make it a regular “check-up” for your business.