With the new year in sight, it’s time to start thinking about the changes that come with it. If you’ve been charging out at the same hourly rate for years now and have started to think it’s time to increase your rates, we’ve compiled a few tips for you. Here’s how to increase your hourly rate in a fair and just way so that your client continues to receive value and quality service they deserve.
Determine your value
Ask yourself, what exactly has increased the value of your work? Have you recently completed further training and up skilled in your field?
Are you widening your service offerings? Or have you recently put more staff on?
For example, electricians who have recently completed the Certificate III in Gas Fitting can now add extra services on to their offerings which means their total hourly rate will go up.
Explain this in detail to your clients and they will understand.
Go straight to the point
When communicating with current clients about the change in your rates, be direct and clear about it and try not to beat around the bush.
Communicate the below three points:
First, your business is important to us, second, price changes are part of business and are relative to the rising cost of living, third, price increase is justified through service and value.
It’s important not to solely focus on the fact that your rates are increasing due to higher expenses, as there is no value in this.
Have a deadline and plan for your rates to be raised by a certain date. Communicate this prior so that your clients can utilise you services one last time before the rate change. Giving them this option will help them to understand that you are working for their best interests too.
Understand that you will leave some clients behind
Clients that are looking for the cheapest rate may decide it’s time to part ways when a change like this is brought into effect, however, this is something to be aware of and not unusual. As you get busier, often these clients can actually help you focus on finding quality clients.
If however, you’d like to keep working together to try to find a compromise that works for you both, but ensure that it is still a rise in comparison to your previous rate.
In summary, the easiest way to increase your rates is through further qualifications, as this is a justified and fair way to grow your business. If you are expanding and hiring more people within your business, this is another great point to raise.
If you’re thinking about further training, check out our courses here which are available throughout the year or speak to our team now for more information.