Entrepreneur
Article

Review Your Rates Regularly

By Miles Burke

I was speaking to a client of mine recently, who broached the subject of their old web developer. She was telling me a number of things she didn’t like about them, and reiterating why she liked my business more.

I was flattered. However, I asked a question that explained so much to me, I just had to share it with you.

The question?

I asked her why she left them and decided to find a new supplier.

The answer?

They started charging too much. Now, when I dug a bit deeper, I found out the real reason: they charged more now than they used to.

In fact, if you looked at our rates, and her old supplier, we actually charge more per hour now than they do to this day.

It wasn’t the fact they charged that hourly rate, it was more that they went from a far smaller rate, which they stuck to for a number of years, before raising it overnight by more than 50%. It was the shock and the lack of communication that upset this client, more than the actual money.

So what is the lesson to you out of this story? Make sure you charge well now. If you believe you are short-changing yourself, start to plan for regular small increases in your rates.

If you review your rates regularly, you’ll find smaller increases once per year is far more palatable than a whopping 50% increase out of the blue. It means that you’ll avoid shocking clients, and you’ll get paid better for the hard yards you put in.

Free Guide:

7 Habits of Successful CTOs

"What makes a great CTO?" Engineering skills? Business savvy? An innate tendency to channel a mythical creature (ahem, unicorn)? All of the above? Discover the top traits of the most successful CTOs in this free guide.

No Reader comments

Recommended
Sponsors
Because We Like You
Free Ebooks!

Grab SitePoint's top 10 web dev and design ebooks, completely free!

Get the latest in Entrepreneur, once a week, for free.