Have you raised your prices yet this year? As freelancers or small business owners we are responsible to raise our own prices and hourly rates. No one else is going to do it for us.
Even if I raise my prices mid-year, I still give myself a raise at the beginning of each year as well. In fact, that is one of the keys to how I’ve tripled my income every year as a web designer.
In this #designscope, I share 3 reasons to raise your prices every year. This can be in addition to raising your prices during the year as you perfect your packages and pricing.
I whole-heartedly believe in charging according to your skill and experience and I’m positive that most of you reading this could actually double your prices without losing any customers.
This #designscope covers:
- 3 reasons to raise your prices every year
- why you are more skilled than last year
- how much to raise your prices
Skip to minute 2:00 to get right into the meat of the topic! The first five minutes are a bit of a welcome and chat with periscope friends.
3 Reasons Raise Your Prices Every Year:
1. You know more about the online industry than you did last year.
You probably know more than most of your clients about blogging, branding, online marketing, how to build an email list, social media management, sales funnels, or copywriting.
As graphic and web designers, we pick up a lot of knowledge about running an online business that can be shared with clients through our conversations and recommendations.
This makes your time and services more valuable – raise your prices accordingly!
2. You are more skilled than you were last year.
It’s impossible to code websites or design graphics without learning new things along the way. All the time that you’ve spent googling, taking classes, or learning through trial and error should be reflected in your prices.
You can do more today than you could a year ago, and therefore you can offer better and more experienced services to your clients. Your prices need to reflect your skill level!
3. The cost of doing business increases each year.
Almost everything is more expensive today than it was last year. The cost of doing business is ever increasing. Domain and hosting costs go up, software renewal fees go up, theme costs go up.. unless you’ve locked in lifetime pricing, chances are you will pay more in business expenses this year than last.
If you don’t raise your prices every year to offset these price increases, you’ll actually end up making less money!
How Much to Raise Your Prices Every Year:
It doesn’t have to scary or daunting to raise your prices. A 10% price increase at the end of each year is a great place to start if you are uncertain or apprehensive about raising your prices. Again, this can be in addition to raising your prices during the year as perfect your packages and pricing.
Should You Let Your Clients Know About The Price Increase:
Since I clearly post my packages and pricing on my design site, I do not notify my clients by email or social media. However, this is a personal preference. I think it’s totally okay and maybe even a smart marketing-tactic to let your followers know that you’ll be increasing your prices in the near future.
If I were to be in the inquiry and on-boarding stage with a client during this time period, I would absolutely let the client know that my rates would be going up on a certain date, and if they book before that date they could lock in my current rate.
Nothing is ever set in stone on a website. You can always change your prices again later if you decide that you’ve raised your prices too much or not enough. That’s the beauty of running your own design business!