Are you undercharging for your services? It can be hard to tell, particularly in a niche industry. Costs have been rising, so it may be time to rethink your pricing.
Five Signs Your Prices Are Too Low
1. You’re Always Busy But Never Profitable
If your calendar is full but your bank account isn’t growing, your pricing likely isn’t covering your true costs — including your own time.
2. Clients Never Push Back on Price
If nobody ever questions your quote, you’re probably well below market rate. Some pushback is normal and healthy.
3. Your Margins Are Shrinking
If costs have gone up but your prices haven’t, your margins are being squeezed. Review your cost of goods/services annually.
4. You’re Attracting the Wrong Clients
Rock-bottom prices tend to attract clients who don’t value quality. Raising prices can actually improve your client base.
5. Your Competitors Charge More
Do some market research. If comparable businesses charge significantly more, you have room to increase.
How to Raise Your Prices
- Increase gradually (5-10% at a time)
- Communicate the value you provide, not just the cost
- Grandfather existing clients on a timeline
- Lead with new pricing for new clients first
Talk to our team about reviewing your pricing structure and margins.