Every small business owner operating under a consulting business model of one type or another – interior designers, architects, accountants, website developers, coaches and others – either wants or needs to make more money. The problem is, if they are still operating in a solo capacity, they seldom have any time open in their schedule to take on more customers. With little time to work on their company because they spend so much time working in their company, important things like figuring out how to make more money gets pushed to a back burner. Hmmm, maybe it’s time to raise your fees.
They are already working 60 hours or more a week. Nor do they have sufficient funds available to hire employees to help bring in more revenue. In a word, they feel ‘stumped’ about how to make things different, and more profitable. Does this sound like your situation?
Have you reached that ‘stumped’ level in your small business too? You’re already working way more than 40 hours a week and still can’t keep up. Hiring someone is out of the question as you just don’t have ample funds, or the confidence, to take on increased payroll and benefits. Revenues just aren’t what you need to cover all of your expenses and still make a good living for yourself and your family. Even with enough customers, profits just aren’t what they need to be. It’s time for a change. It’s time to get ‘un-stumped’ and raise your fees.
Consider your options: work for more customers at low fees and profits; or work with fewer clients for higher fees and profits. It’s pretty clear which option is best. It’s time to raise your fees. Horror of horrors, yes, I brought up that topic! Raise – Your – Fees.
I’ll bet you already have a list of your own excuses about why you cannot possibly raise your fees. If you don’t have any excuses, why haven’t you raised your fees before now? You think you deserve to be paid better, based on the value you bring to your clients. Do you know what? You are absolutely 100% correct. What are you waiting for?
Common Excuses for Not Raising Fees:
- You won’t be able to get clients.
- Your existing customers will walk away.
- No one will pay more for what you offer.
- Your competitors’ fees will be lower and they will take away your customers.
- This is how much everyone else charges for what you do.
Feel free to jump in and add your own excuses – you know you have some. You’ve probably been putting this critical fee increase off for a long time. Believe me, you are not alone. This issue has been around in your industry since before you joined in. It’s a common issue for those who work in service industries.
Is Not Raising Your Fees Making You Happy?
Let me ask you these questions: Did you go to school and work hard to get your certification or college degree just so you could learn to sell time? Did you build your skill level as a support tool for selling time? Do you really believe you have nothing more to offer to clients and customers except your time? I hope your answer to each of these questions was a resounding ‘NO!’
Next question: WHY are you willing to work far more hours than you would as a hired employee for someone else and probably making less money too? Small business owners and entrepreneurs typically work 60 or more hours a week on their own businesses. You know what you do is worth more than you are getting from your customers for your services. It’s time to make your move and raise those fees.
Work on a Strategy to Raise Your Fees
Start working on a strategy today to start raising your fees. Set a date. Consider using a stepped approach to get to the level you want to reach. Notify existing customers that effective ‘X date’ your fees will increase by a set amount. You can then implement another – or a couple – more step increases on given dates in the near future, like in another six months. Start charging all new customers at your higher rate.
Will you lose a few customers? Maybe. But, at the higher fee rate, you won’t need to work with as many low-paying customers to make the same income. Those who are willing to pay for an expertise and value make better customers anyway. Wouldn’t working less hours with fewer ‘better’ customers, making the same or more income be a good alternative to working long hours for low fees? It’s time. Raise your fees structure now. You are worth it.
