Setting and Raising Prices: Lifestyle and Marketing

Phone Calls
Meetings
Administration (bookkeeping, correspondence, contracts, reports)
Training

Variables Affecting Prices

Geography
Demography
Niche
Experience
Perceived value
Skills
Client capacity to pay/realize value from your work
Cost of delivering services
Competitors' fees

Is It Time to Raise Your Fees?

Full calendar
Reputation as leader or expert
Turning away work
Recognized author or speaker
Prestigious affiliations or awards
Advanced training/certification
Improved services
Increased costs

Strategies for Raising Prices

Annual incremental increases
Business cycle increases
"Going rate" increases
Be sure the going rate is set by going concerns!
Do going rates reflect your costs and services?
More work to justify rate increases of more than 10%
Keep clients informed of how great you are
Training and skill development
Concern for their well-being
Improvements in service and capacity
How you saved them time or money
How you made them money
How you solved problems for them or for others
How much you are in demand
Create a mood that supports your declaration of value
The body of confidence

What Clients Want to Know When You Raise Prices

What are the new rates?
When do they go into effect?
Give reasonable notice
Consider giving current clients a grace period to adjust
Why are they going up?
What value will the client receive for the higher fees?

Adjust Prices to Manage Work Type and Work Flow

Projects you don't really want
Rush work
Difficult clients
Profit is commensurate with risk (and distaste!)

Want to find out about adult chicken pox and chicken pox in babies? Get tips from the Cure For Chicken Pox website.