Should You Raise Your Rates?
Pricing is a key factor to success, whether you’re selling a product or charging for your services. As far as rates for work go, charging by the hour is common practice. But that doesn’t mean it’s always the best.
The typical philosophies around rate increases can give you increased profits. But they can also drive away possible clients, and reduce your long term potential to draw in work. The article below presents an alternative: pricing based on value, not by the hour. Give it a read to find out why this can work better for boosting profits, business, and client satisfaction.
Pricing is tough. Sometimes you hear that raising rates until people start saying no is the way to go. While that is a strategy, it may not always work.
“If I price by the hour, then I’ll always make a profit.”
The logic almost makes perfect sense, doesn’t it? If you charge by the hour, and you charge for all your hours, then how could you ever lose money? And because the logic is so simple, it invites everyone to gather around and sing the same tune.
Read the full article: Pricing Challenges: why raising rates may not always be the answer