Question: How Do I Raise My Rates?

How do I tell my clients prices are going up?

How to gracefully tell a client you’re raising your ratesRemind them what you’ve already done for them.

Tell them you are going to be adding more value.

Explain why you’re raising your rates.

Give them plenty of notice before you raise your prices.

Use this tactic to get extra work in addition to increasing your prices.

A note of encouragement..

Which pricing strategy is best?

The 3 Most Effective Pricing StrategiesPenetration Pricing. Penetration pricing is a pricing concept that sets the mentality of “low cost and dependable quality equals high demand”. … Image Pricing. … Price Skimming.

How do you raise your interest rate without losing clients?

Follow these five do’s and don’ts to raise prices without losing customers.Do study what your competitors are doing. … Don’t be sneaky. … Do explain your reasons. … Don’t apologize. … Do expect to lose some customers—but expect to gain some, too.More items…•

What are the 5 pricing strategies?

Types of Pricing StrategiesCompetition-Based Pricing.Cost-Plus Pricing.Dynamic Pricing.Freemium Pricing.High-Low Pricing.Hourly Pricing.Skimming Pricing.Penetration Pricing.More items…•

How can I increase my hourly rate?

Here’s some advice to help you get your hourly rate trending upward:Invest in improving your service. Keep adding value; don’t get complacent. … Over-deliver. … Keep non-core work from becoming a distraction. … Collect testimonials. … Ask for referrals. … Leverage your strengths. … Care about your clients. … Keep in touch.More items…•

How do I write a letter to raise my rates?

When writing your price increase notice, keep these in mind:Keep your letter direct and simple. Remember that the time of both you and your client is very valuable so never beat around the bush. … Give a justification for the price increase. … Provide your clients with a lot of notices about the price increase.

How do you justify a price increase?

8 Techniques to Justify a Price Increase Introduce a new version. … Cut to the chase. … Remind customers about the value they get. … Tell them about your costs. … Be humble on social media. … Launch a low-cost version. … Highlight social responsibility. … Make sure your price can be justified.

How do you propose a rate increase?

How to Convince Your Client to Accept Your Rate IncreaseCompromise. Offer a rate that’s lower than what you were asking, but higher than what you’re currently getting. … Flatter. Never underestimate the power of flattery. … Over-perform. … Bluff.

What are acceptable reasons to increase price?

However, companies often weigh both internal and external factors when deciding to raise prices.Higher Costs. One of the most basic reasons companies raise prices on their products and services is to adjust to increased business costs. … Strategic Change. … Industry Trends. … The Aftermath.

How do you justify a price?

Here’s how you do that:Unpack your beliefs about your value. A lot of people who struggle to justify their price are actually struggling with their sense of personal value. … Reframe your thinking: it’s not only about the end product. … Work on your beliefs about selling.

How should a contractor ask for a rate increase?

How to Ask Clients For a Higher RateProve Your Worth. If you want to feel more comfortable with being able to ask clients for a higher rate, focus on proving your worth and overdelivering on value. … Give a Reason. … Tell, Don’t Ask. … Summary.

When should you raise your prices?

1. Time it right. The best time to raise prices is when you’re sure customers are satisfied with your product or service. If you’re planning a price increase, be especially diligent about proving your worth in the months before you do so.

What is Apple’s pricing strategy?

Retail pricing Apple uses a MAP (minimum advertised price) retail strategy. MAP policies prohibit resellers or dealers from advertising a manufacturer’s products below a certain minimum price. MAPs are usually enforced through marketing subsidies offered by a manufacturer to its resellers.

What are the 4 types of pricing strategies?

Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.