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Further
Reading ...
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E-marketplaces from Seller's Perspective - Nowshade Kabir
What is an E-marketplace anyway? E-marketplace is a business to business web based venue, where buyers and sellers meet online, generate business leads and conduct business transactions. The e-marketplace features are tailored in a manner so...
HOW TO BUILD CREDIBILITY ONLINE: THE "MAGIC" TEN STEPS - Craig Lock
I find this a most interesting and somewhat complex subject, as there has to be TRUST in any business relationship before any exchange is made. This can be quite difficult to achieve, when you have never met your customer (prospect) face to face in...
Stimulate Creativity and Learning - Wendy Hearn
What does cultivating creativity add to the workplace and your business? The benefits are huge but are often underestimated by most people. Companies who wish to progress quickly and stay ahead need to stimulate creativity and learning among their...
How to Build a Niche Site With a Blog - Linda J Bruton
Building niche sites is all the rage these days. The basic strategy is very simple. Find a niche market that isn't oversaturated. Develop a list of related keywords people are searching on. Then write an article optimized for each one of your...
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How To Realistically Set Your Fees - Part 5
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Written By:
Sue and Chuck DeFiore
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How To Raise Your Fees
There comes a time when it is inevitable that you must raise your fees in order to maintain both your profit margin and income level. You will find that the greatest resistance to this comes from your oldest clients.
There appears to be a direct correlation between the length of time a client is with you and the amount of outrage they show to your rate increase. This article will discuss the types of clients and how they usually react.
Keep in mind, no matter how you raise fees, how you approach telling clients or amount of lead time you give them, you will lose some clients. This is a given. I have found over the years that a very high percentage of clients lost are those that I'm not crazy about working with anyway. It's worked out, for me anyway, that these former clients who complained the most about your fee increase, were responsible for 85-90% of the aggravation I encountered.
Clients are attracted to you for a variety of reasons. We would all like to think that it is because of our brilliant promotional pieces, our award winning designs, outstanding service, etc. The reality is that many clients are using your services strictly because of price. I refer to these clients as price loyal. They are loyal to whomever has the lowest price. This type of client is not particularly sensitive to quality of work or level of service you provide. They go strictly with the lowest price and if you have the opportunity to examine how they run their business, your see it operates on this principle. For me anyway, this type of client is no loss.
There is a second type of price conscious client that is concerned with the quality and type of service being provided to them. You may lose this type of client with a price increase, but - continued below ...
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continued ...
you'll find that they will be very apologetic about it. These clients truly can not afford the higher rates. They are usually a dream to work with, and I hate to lose them. In this situation, I will try a number of ways to keep them.
Your newer clients usually react in a more neutral manner to a rate increase. They haven't been with you long enough to get a true baseline on your fee structures. You stand a very good chance of keeping these clients if the reasons for the rate increase are explained to them and not just dropped on them.
I find that I lose about 5-6% of my clients when I raise my fees. Usually, I suffer no income loss because my higher rates absorb their loss. Remember, the bottom line is you are selling your time, you must make the most efficient and profitable use of it. If your rates stay around market level, you should have little or no trouble finding new clients.
Copyright 2003, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 17 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our FREE "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
coaches@homebusinesssolutions.com
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| _Additional Resources ... |
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Right PR Empowers a Manager - Robert A Kelly
Business, non-profit and association managers are in a stronger position to succeed when they use their public relations resources in a way that alters individual perception leading to changed external stakeholder behavior. A mouthful, but...
A Unique Joint Venture Twist: Make Huge Profits Even If You Have No Money, No Products, and No List - Rick Miller
Would you like to jumpstart your online or offline business without spending a ton of money? Without a doubt, joint venture marketing is the most powerful secret to making money online or offline. In its simplest form, you partner with...
Choosing a Mortgage Lender - Bwalya Mwaba
Just as there are many types of mortgages and mortgage deals to choose from, there are also many sources where you can go to get a mortgage. Your key choices are to use a mortgage broker, a more general financial adviser, or shop around yourself and...
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