Have you been wondering if you should raise your rates? Aside from time passing, there are specific signs to look for.
Below we have listed three of the most common signs it is time to increase your rates and your profit.
- All of Your Quotes are Being Accepted
The amount of quotes being accepted varies based on the trade and industry you are in.However, no matter the industry, there should never be a 100% acceptance rate.If there is a 100% acceptance rate, allow this to trigger you to consider a rate increase. This does not mean that you should be receiving a surplus of denial based on rate. But rather the awareness of your business worth. Do not under-sell or devalue your time, effort, and output.
- You Have the Business, but are not Seeing a Profit Gain
Your business needs to be profitable. If not, your hardwork is going to lead to burnout,
frustration and inability to sustain the business that you are getting. When deciding to raise your rates, it is vital to look at more than just bank statements. Getting by or not being in the red, is not enough. Ensure that you are accounting for all of your business overhead and do not solely focus on one area. Are you charging for labor or time but not parts, software, taxes or a business emergency fund? Are your employees being paid appropriately? These areas are just as, if not even more, important as staying in the green. If your current rate does not provide the ability to put income into these areas, it is time for an increase.
- You, the Business Owner, are not Getting a Pay Raise
Business owners are often the last to receive a pay raise when the business is showing profit. If you find yourself pouring all funds into every other facet and your personal income is left stagnant, it is time to look at increasing your rates. Your business will not run without you. You are the most important employee and should be paid accordingly. Business owners should not be taking what is left over, but being confident in prioritizing your income as well as the other parts of your business. Is your business booming but your personal income is dwindling? Raise your rates.
It can seem and feel risky to raise your business rates. But you are worth it. Be confident in your business and value your time. If you are feeling overwhelmed or uncertain when looking at your business, let us help!
Allow us to come alongside you and provide a strategy that serves. Our trademarked and purposeful process will leave you feeling refreshed with business strategy that serves your clients, your business and even your personal life.