Small business owners often find themselves charging less for their products and services when the companies are first getting started. As time goes on, you will likely want to raise your rates to be more competitive with the rest of the market. However, once you’ve set prices on goods, increasing them can be problematic, and previously loyal customers may end up abandoning you for the competition. Here are three tips for raising prices as a freelancer without alienating your devoted customer base:
1. Offer Reasonable Notice Clients are rarely excited to learn that a supplier’s prices are increasing. Still, freelancers and SMBs need to stay competitive with the rest of the marketplace if they hope to succeed. To avoid dealing with angry customers, be sure to offer plenty of notice of an impending price hike. Not only are customers less likely to worry about a rate increase that’s a month or two away, but they also have time to get their finances in order and budget for the increase. For best results, strive to over-deliver on your services in the weeks leading up to the rate increase so your clients know how truly indispensable you are.
2. Charge New Clients More Raising prices on customers who’ve stood by you from the beginning can be uncomfortable to say the least. One way to avoid this awkward situation is to charge new clients more than you do existing ones. This way, you can boost cash flow without damaging those hard-earned customer relationships.
3. Showcase Your Accurate Time Tracking As a freelancer, you’re probably well aware of the fact that clients don’t always pay their bills in a timely fashion. This issue only intensifies when you try to raise prices to meet market standards. If you want to increase the odds of your clients paying on schedule, aim to provide them with accurate, down-to-the-minute time tracking for each task you complete. By showing customers exactly what they’re getting for their money, you can minimize billing disputes and ultimately get paid for your work faster. As an added bonus, it takes just seconds to translate your pre-approved timesheet into a detailed, professional invoice that your customers won’t be able to ignore.
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Freelancers are often hesitant to raise prices on their goods and services for fear of alienating customers. However, the truth is that your years of experience increase the value you provide. By investing in accurants’ cloud-based time tracking and invoicing tools, SMBs can ensure that every bill sent to clients is accurate and professional. In the long run, better billing means fewer late payments and more money in your checking account. For more information on our easy-to-use accounting solutions, call today or contact the accurants team online.