When To Raise Your Rate
Raising your rate. Everybody wants a raise. Everybody deserves a raise. Raises all around. So you have to start to look at how you raise. So I like to raise clients who are new first. If I'm looking at my number and my business is building, and it is worth having a raise then I have to start to look at clients that I already have and me saying to them, "Listen, we're raising rates" it's a little bit harder. But with new clients I can start to test the market and do that. What's the most important part of raising your rate? For me, it is when you actually add value to what you do. So how do you justify raising your rate? It could be the market is moving, and the market will move. Sometimes in your area all of a sudden everyone's getting a little bit less. Then there's a higher demand. So you'll start to feel that anyway. When I do what I do and I'm trying to do it a little bit better than the next person I raise my rates when I have added value. 'Cause I'm already gaining more experienc...
e. Every project you do you learn something from. If you're paying attention. You are doing things over and over again. After awhile you'll be like, "Oh wow, I do this really fast." I've watched some designers who freelance and I watch them use InDesigner Sketch and it's amazing. They're so fast. They're adding value. But they can't now charge just by the hour, because they're going so fast, they need to start to value price what they do. The other thing is with your existing clients, if you meet with existing clients you can raise your rate, but have that conversation. I have clients I've worked with for years. If I'm looking to raise rates if things are happening, I'll sit down with them. What do you want this year to happen with your business? This is what I'm doing with my business. I am being selective with who I work with. This is my new rate structure. How should we move forward? I find at that point, and we talk about a lot here, people say, "I broke up with a client." Sometimes that happens. And it's not really a sad breakup. I don't have a theme song for my breakups with clients. But what I would say is this. I have had to let go of certain people because it helped my business grow. If I'm offering the same services, the same resources, the same time to a client, that's not building my business I have to refer them to someone in my network. 'Cause I don't let go of that client forever. I say, "Hey listen, "I'm not able to continue with this work." "Here's a great person to help you." It's a great way to keep your network going, and to build your business. So you need to think about that. What is the direction of your business, not just there's? We have this idea that we have no power, right. Like, the client has all the power. Please pick me. I hope you like me. But the truth is, you have so much more power. They have a problem that they only can get solved by you. They need somebody who's professional who does great work, and cares and loves what they do. So you have so much more power when you walk into that conversation. It's your business. You get to choose. You have to handle what happens when you say, "Listen, I can't do this anymore." But you get to choose that and it's the best. I have not had a problem ever saying to a client I can't service you any longer because of this reason. I've just helped them get somebody else to work with them. People I trust.