You’ve probably heard the advice to raise your rates or “charge your worth.” But the thought of charging people more for your services can send you into a big-time imposter syndrome spiral.
Are you worth the extra money? What if you lose clients? What if it’s harder to sell clients on your new price? These are just a few of the questions swirling around in your head when thinking about whether you should increase your rates or not.
Here’s the thing: raising your rates as a freelancer is totally justifiable and absolutely necessary. Let’s take a look at 4 major reasons.
Reason #1: The Cost of Living Has Gone Up for Everyone
No matter who you are or what you do, life is more expensive today than it was a year ago. Everything from groceries and fuel to a cup of coffee has gone up in price.
Why should your rates remain stagnant when other prices change? Raising your prices is a necessary part of business for this reason alone.
Reason #2: It Says You’re Worth More
You know how you can go into the store and look at two similar products like paper towels, but they’re totally different prices. One is name brand and costs $5 while the simple store brand costs $3.
Whether or not it’s true, we perceive the $5 product to be higher quality than the $3 brand. When you raise your rates, people will perceive your business as higher quality than the competition.
Reason #3: You’ve Become Better at What You Do
You have more experience now than when you initially set your rates. That experience has made you better at what you do.
You’re able to provide a higher quality service for clients which is worth more than it was a year ago. Let your prices speak for what you have to offer.
Reason #4: You Can Earn More By Selling Less
It’s true that you might lose a few customers when you raise your prices. But you won’t lose all of them and selling your services at a higher price is far more effective than selling more of your time.
You’ll continue to attract new customers who are comfortable with your higher rates, meaning that they’re better customers for you overall.
Raising your rates might be uncomfortable, but it’s totally justifiable to do it at regular intervals. Remember, the cost of living goes up every year, it makes a statement about your quality, you have more experience than you’ve ever had before, and you can earn more by selling less. So, go ahead and raise those rates to grow your business.
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