Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry, or you’re a contractor. Costs have been rising due to inflation and the pandemic, so it may be time to rethink your own pricing.
Here are five signs that you might be undercharging:
- Nobody ever questions your quotes - Do all your new clients accept your quotes or charges without asking any questions, requesting a breakdown, or wanting a discount? It’s possible they’re delighted to be getting such a great deal.
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- You run off your feet but you can’t afford to get help - When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low –something needs to change.
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- Your prices have been the same for two years or more - In most industries, prices increase slightly each year. Leave your prices flat for too long, and you’re not keeping up with the market. Make sure you review your fees annually.
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- You’re overbooked - When business is booming and there’s no room for new clients, it’s time to raise your prices.
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- Clients don’t treat you as well as they should - When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.
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What should you be charging?
Finding your pricing sweet spot could take a little time. You’ll need to do some research, maybe ask around a little, and find out where your competitors are pitching their rates.
If you’re not sure about your pricing, we can help – give us a call or an email.