4 Signs That Tell You It’s Time Increase Your Service Fees
April 11, 2022
As a freelancer or coach, you are likely to encounter moments in your journey when you want to consider upping your service fees. Sometimes, these moments make you realise that your fee is way too low for the value you deliver, but you may not always be sure if you should be increasing your rates. We’ve got you covered with 4 sure shot signs that tell you that you need to up that freelancing fee.
Your rates are the lowest in your market – Adopting a competitive pricing model might work for you in the short term as a solopreneur, but you need to keep weighing your existing fee against the fees being charged by your competitors. If you fix your service fee is solely based on your market rates, you might end up undervaluing yourself over time. So, at regular intervals, do examine how much your competitors are charging for their coaching and mentoring services. If your market survey reveals that most competitors are charging more than you, it’s a clear sign that you need to bump your fee up too.
You have up-skilled over time – It’s a no-brainer by now that every professional needs to stay in tune with the fast-changing times, and one way of doing that is to up-skill by obtaining domain specific certificates and completing courses relevant to your area of expertise, while being on the job. Make sure to keep weighing your service rates against the quality of service you provide by virtue of possessing the said skill set. Do not hesitate to justify your increased rates through your constantly evolving skills and expertise. Your clients are aware of your worth, but sometimes, you can use the opportunity to inform them about the same while deciding to up your coaching rates.
You are playing the catch-up game with ‘demand’ – Have you ever felt overworked or too busy, whilst being overwhelmed with new clients wanting to avail your services? Have you encountered an almost 100 percent close rate where every lead seems to convert? If the answer to some of the above questions is ‘Yes’, you probably need to re-assess and jack up your service rates. Being in a position where every potential client wants to sign up for your services might feel good, but it’s probably because they’re getting the best deal from you. You’d rather not be in this position. Instead, you might want to charge higher (even if it means losing a potential client or two), justify your premium positioning , and also eventually earn more with lesser engagement, leading to better work-life balance as well.
Your service rates haven’t changed in over a year – If you were employed full-time with a company, wouldn’t it be completely natural for you to expect an annual appraisal? Similarly, while being your own boss in your solopreneur journey, 12 to 14 months is a good interval to re-evaluate your service charges. Moreover, rapidly evolving market economics surrounding pricing, coupled with inflation, is a solid reason for you to consider increasing your value with time.
Going the competitive pricing route is a smart way to begin your solopreneur venture. But this model is short-lived and loss making in the long run. The above pointers are crystal clear signs for you to increase your service rates, as you grow in your journey in every possible way. Catching these signs early and adjusting your value accordingly will benefit you in more ways than one.