Here are 5 ways you can raise your prices and get paid MORE for the services you are already performing.
#1: Just raise ‘em. Pretty ingenious, huh? That’s why I get paid the big bucks. Just type up a simple letter explaining that on X date, your rates are going up. You don’t need to apologize or get a note from your mother. Just do it. The world will not come to an end and your clients will not gnash their teeth, scream, and cut themselves with rocks. In most cases, you will only get a mild response.
#2: Price increase alert with up-sell. In a letter or e-mail, you alert your clients that your rates are going up, but that they can save some money or lock in the current on-site rates if they sign up on a managed service agreement. Keep in mind there are several ways to announce a price increase while up-selling clients on to another service; this is only one example. You could also announce a price increase for on-site rates, but thanks to this new remote monitoring and support software, you can fix most problems remotely for the same rate they are used to paying. This would enable you to charge the same rate for remote repairs that you are charging for on-site services now, while increasing your on-site rates a few points.
Instead of locking in their current on site rates as the letter suggests, you could also offer to waive the set up fee for the managed services (yes, you have to have a set up fee in order to waive it. Creating a set up fee is a smart sales tactic that you should implement regardless of whether or not you increase your rates. It gives you bargaining power when selling managed services because you can “waive” it if they make a decision within a certain time frame). Read full article and comment →