Raising prices is one of the most important things you can do for your business. So many entrepreneurs are afraid to do it, and they find themselves stuck in a stressful, low-margin business where they’re always putting out fires. They can’t turn the business into something they can take a step back from, invest in, and grow.
You need to stop getting emotional about getting every job and client. You need to not care about if there is cheaper competition in town. You want the customer who is willing to pay more for better service, not the one shopping solely on price. You won’t compete on price, you’ll compete on service. You’ll offer a better lead time, stronger customer service, and a more professional experience.
Don’t try to chase and convert every lead, you need to be okay with losing 60% of the people who reach out to you. It’s okay to tell customers that you’re not the right option for what they’re looking for. Be confident and trust the process, or else you’ll leave thousands of dollars and tons of time and energy on the table.
Raise your prices to do less work for more money. Raising prices by just 30% can double your profits. This gives you the leeway to invest in the business, your employees, and your growth. And you’ll get higher-quality customers, because the customers who cause the most stress are the ones who are bargain hunting for services.
Don’t start with high prices, start with $50/hour or more for your time based on the market. But when you get too busy, and you find yourself working nonstop just to stay afloat, that’s when it’s time to raise your prices. Tell your customers that you need to make hires and invest in the business, and you’ll understand if they leave. This is how you can start to dominate the service sector.
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