The Key to Raising Prices Issue #69

?When you work as a Virtual Assistant, it’s important to raise your hourly rate from time to time. But it can be scary, especially since we don’t know how our existing clients may respond.

As your speed and skills increase, so does your ability to charge more per hour. However, how you handle raising your rates can make a big difference in the way your clients perceive the change.

Keep these four things in mind…

• When first starting out,?charge an hourly rate that is?attractive?to clients. This will help you get going and earning money right away.
• Don’t raise rates on existing clients?– keep them where they are. Raise your rates for new clients only. As soon as you have a handful of clients at the new rate, raise it again, another $5-$10 an hour for the next batch of clients. Doing it this way feels less risky because you can test your new prices without losing or upsetting existing clients.

If the work continues to pour in at your higher rates, consider raising fees for existing clients. But call them to let them know (and practice ahead of time). Be ready for objections (and possibly losing some clients), but hold your ground in a friendly and professional manner.

Then follow up with an email outlining the details.?Here’s some sample text to use:

Hi Client Name,

As we discussed on the phone, I’m changing in my pricing in a way that will have an impact on you. Starting next year (January 1, 2020), I’ll be raising my hourly rate to $X.

As I’ve gotten busier and busier, I can’t sustain the quick turnaround of work and high level of personal service that I want to provide, while being spread so thin and in so many directions.?My hope in making the change is that I’ll be able to take on fewer clients, allowing me to give more care to the ones I already have.

While I understand that this new rate might be more than what you are willing to spend, I hope we can continue to work together. I appreciate the opportunity you’ve given me to support your business.

Belinda

• Give them plenty of lead time about the price change. When I raised my rates on existing clients, I told them in November that the rates would increase starting January 1st. That gave them some time to think about it and not leave them in a difficult position if they didn’t want to continue our work.

By using this technique, I have been able to steadily increase my rate, increasing my monthly income until I had doubled the hourly rate I charged when I began. Some clients have left over the years, but more have joined and my business has grown steadily!