Setting your rates can be one of the most intimidating parts of running your own business. You need to charge what you’re worth, but you also need to set a price that people are willing to pay. It’s a balancing act that’s not always easy to figure out.
And even when you do set rates that help you succeed, there will come a time when you’ll want to start charging more for the work you do. That too can be a challenge to navigate. After all, the last thing you want to do is scare away your current clients by charging too much.
So, is it the right time to raise your freelance rates? Here are a few ways to tell:
Fact #1: You’ve Been Successful So Far
Have you been doing great work for your clients? Do you have the results to back it up? If the answer is “yes,” then it might be time to raise your rates.
Having proof of previous success shows potential clients how valuable your services are. And if you’ve gotten results for your current clients, they’ll see the value in your new rates.
Fact #2: No One Tries to Haggle with You
When you tell prospects how much it costs to work with you, how do they generally react? If everyone agrees to your rates right away with no negotiations, you might be undercharging for your services.
It shows that clients see your services as valuable and can’t pass them up at the current price.
Fact #3: It’s a New Year
Has it been over a year since you raised your rates? If so, it’s time for an increase. The cost of living increases every year. Food, housing, utilities and entertainment all cost a little more over time – there’s no reason your services should be any different.
Most employees receive annual raises for both performance and the cost of living. Your clients shouldn’t expect you to be an exception.
Fact #4: You’re Better Than You Were Yesterday
The more time you put in as a freelancer, the more experience you gain. Your rates should reflect this experience.
After all, if you were applying to a regular salaried position, you would expect to be paid more with several years of experience than someone applying for their first role. You’re always growing and learning; make sure your rates reflect it.
Raising your rates isn’t something to fear. While it might feel intimidating at first, it’s a normal part of running a freelance business.
So, if you have gained more experience, aren’t getting any pushback from clients about your rates and have proven results to your name, it’s probably time to raise your rates.
Want to learn more about running a successful freelance business?
APPLY TO ALLERGIC TO HOURLY™
What would it mean to you to hit 6-figures without tracking your time, working 40+ hours a week, & being glued to your laptop? Allergic to Hourly™ helps you create a business that fuels your freedom without being stuck charging hourly rates. Fill out your application as soon as possible so we can send you an advanced private training with all the details! The deadline to apply for the next session is at the end of this month.
TAKE THE SOLO TO CEO QUIZ
If you feel stuck in your business but aren’t sure how to get unstuck or what steps to take next, take the Solo to CEO Quiz. We’ll ask you some questions about your business, give you a score, and then give you actionable next steps & resources to help you get unstuck and create momentum. Click here to take the quiz.
FREE TRAINING: 5 SYSTEMS YOU NEED TO GROW YOUR ONLINE SERVICE BUSINESS FREE TRAINING
In this free training, I show you everything you need to know about the 5 systems your business needs to grow sustainably, how to build on the things you’re already doing in your business, the tools I use to pull in bigger clients with less effort, and how to set your business up to support the life you really want to live. Sign up for the free training here.
FREE TRAINING: THE 4 MINDSET BLOCKS KEEPING YOU FROM STARTING YOUR SUCCESSFUL SERVICE BIZ FREE TRAINING
If you’ve been thinking about starting your own business as a freelancer, consultant, or service provider, then you know that the hardest part is just getting started. I know there’s so much info out there, it’s hard to know where to start or what to do next. I put this training together to connect the dots for you and help you get started successfully. Sign up for the free training here.
Read the next blog post: Uncover the Riches in Niches
