28 May How to Raise the Rates You Charge Your Clients
Are you looking for a way to raise the rate of your services? Many of us would love to charge more but are afraid that we may lose our clients or wonder if our work justifies an increase in the client’s fee.
You will find several ways and strategies in this article that will help you earn more fee without losing your clients.
- Differentiate Your Service
Make your offering stand out by providing unparalleled client services or allowing your clients to customize work processes with you. Train your team to respond to clients’ needs quickly so they stay with you for the speed at which their work is done even when you raise your rates.
Your goal is to develop a relationship of trust by offering an exclusive service, so your clients feel that your team is the most suitable for them. This will allow your clients to value your service more than others and they’ll be willing to pay additional fee for it.
- Use Increment as a Business Strategy
Whether you are a freelancer or have a self-owned business, schedule a time to increase your rates as you add more clients to your portfolio. You may decide to increase your fee after a year of being in business or when you’ve reached a milestone in terms of number of employees or clients. Inform your clients beforehand of this “business strategy” so when the time comes to raise rates, they are not surprised and can plan for the additional charges.
Raising your fee significantly in one instance can drive away some clients. It is important that you increase the rate in intervals, for e.g. annually, so that your customer transitions comfortable to the higher fee structure. But make sure that the interval don’t occur too frequently.
- Add a New Service
Adding a new service or upgrading the previous one can help you to justify the increase in rates to your customers. If you’re having trouble increasing the rate of your existing services, then this strategy will allow you to make more from clients through cross-selling.
Bonus: new services also attract more customers.
- Design New Packages
Breaking down your services into “packages” designed for different number of service hours or different tasks will allow you to charge more for additional work. Your clients may begin with a “standard package” and upgrade to a “premium package” when their capacity increases. You can up-sell to charge more by convincing them that you can provide specific solutions to their business’ problems with the upgraded package and higher fee.
Whenever you feel the need to raise your rates, you can design a new package. The client will be comfortable with the change in fee if it is in a new package they are transitioning to.