Do you find it difficult to work out how much to charge for your time and experience? Are you conscious of charging too much? Do you feel guilty even thinking about increasing your rates? These questions are more common than you think – you’re not alone.
You need to remind yourself that what you’re offering is valuable, as it can solve people’s problems. Your service is worth paying for. Now, we’re not going to tell you how much to charge, but we do have a few ways to ensure that your clients pay what you’re really worth.
This is such a common mistake that businesses make. If you undervalue what you offer, you’ll never earn what you deserve. Can you really afford to sell your services for less than you know they are worth?
It’s only natural to see what your competition is charging and what your clients are willing to pay, but you can’t rely on these factors when setting your rates. You have to show your own true value. By setting your rates too low, you’ll limit yourself.
Instead, ask yourself the important questions, such as what will give you more income and your clients better service? And once you’ve set your rates, don’t lower them!
When prospective clients are trying to choose between you and your competitors, they want to know who will give them the best results. Like any business, they want to see a return on investment, so you need to tell them what you can offer.
So, how much value are you adding to your clients and prospects? Make it crystal clear that your services can save them time, money or resources and explain how. In time, your services then warrant higher rates, as with the net financial benefit for your service greater than the cost, it makes financial sense. In a nutshell, they need to feel like they’re getting real value for money.
You may have several clients on your books and you may be incredibly busy, but to each of those clients, you may be the only person helping them with the particular problem they’re having.
This means that you can’t let the little things slip, as those small things could mean more than you think to your clients. By missing one small thing, you could make a client feel insignificant. Can you really afford to let that happen?
If a client reaches out, respond as quickly as you can. Help them in any way you can, and ensure perfect communication throughout. The same rule applies with new business prospects, too. By keeping your clients happy, they’re more likely to value your offering even more.
It’s a great feeling when you win a new project, but it’s even more valuable to have long-term contracts with clients who pay for your services every month. If you want to increase the value of these contracts, be sure to negotiate for fair market value renewals when long-term contracts end.
Now, you can’t really just ask for your existing clients to pay more money for the same offering – but what if you up your game and offer them even more? That’s when you can renegotiate for a higher fee. You still need to be able to solve client problems and offer clients a great experience and fabulous results, but if you can do all this at an even higher level than before, you can justify increasing your fees.
If you make the most of all four of these points, you’ll be able to align your fees with your true worth. Your services are valuable and people want to pay you to solve their problems – so let them!
If you’re looking to grow your business, charging clients what you’re really worth is just the start. Here at Home of DARWIN, we want to help you. That’s why we’re offering a FREE eBook on how to scale up, so you can learn all about a whole host of ways to take your business to the next level.
Can you afford to wait much longer to start seeing your IT business grow?