Lifestyle And Marketing Notes On Setting And Raising Prices

Lifestyle And Marketing Notes On Setting And Raising Prices



Lifestyle and Marketing: Notes on​ Setting and Raising Prices
Lifestyle and Marketing
If you​ think you​ need to​ live large to​ attract business,​ think again .​
What attracts business is​ a​ valuable offer delivered to​ the​ right prospect with confidence,​ integrity,​ and consistency .​
On the​ other hand,​ it​ is​ almost impossible to​ attract business when you​ are desperate for work .​
Your lifestyle choices can underscore your commitment to​ an​ authentic and connected life,​ one lived in​ awareness and respect of​ the​ well-being of​ others and of​ the​ planet .​
Living these choices and letting them inform how you​ show up in​ the​ world can be a​ compelling aspect of​ your personal marketing formula .​
They can distinguish the​ offer you​ are in​ your chosen market niche.
Insurance,​ Taxes,​ Retirement,​ and More
Other considerations for the​ self-employed are medical,​ dental,​ life,​ and disability insurance .​
In addition,​ you​ may need professional liability insurance,​ insurance on​ your equipment and records,​ and insurance to​ protect you​ in​ the​ event of​ accidents on​ your premises .​
Self-employment taxes can take the​ unwary by surprise .​
Check with your accountant (you do have one,​ don't you?) and find out what your tax liabilities are likely to​ be .​
How do you​ plan to​ fund your retirement? There may be tax-advantaged plans available to​ you​ as​ a​ small business owner .​
Again,​ check with your accountant .​
(Have you​ noticed that one of​ the​ expenses you​ will need to​ plan for is​ accounting?)
It is​ easy to​ overlook hidden costs such as​ depreciation .​
Think about the​ furnishings and equipment you​ use and how often you​ will need to​ repair or​ replace them .​
Where will you​ get the​ money for these expenses? How will you​ pay for software upgrades or​ for a​ technician to​ debug your computer?
The following outline can help you​ understand how to​ set your own rates and why there is​ no one size fits all formula.
How Much Do you​ Want to​ Take Home? Net Income Versus Gross Income
Here's a​ partial list of​ expenses you​ may incur in​ your business.
Taxes
Benefits
Medical insurance
Disability insurance
Dental insurance
Retirement
Overhead
Depreciation (it's not theoretical!)
Replacing furnishings
Replacing equipment
Upgrading software
Administrative overhead
Clerical help
Bookkeeping
25-50% of​ your time to​ manage and market your business
Vacation,​ Holiday,​ and Sick Pay
Where Does the​ Time Go?
Hint: Keep a​ running list of​ everything you​ do for thirty days .​
Not a​ to​ do list,​ but an​ I​ did list .​
This will help you​ to​ understand where your time goes.
Sales and marketing
Service (email,​ phone,​ troubleshooting)
Email
Proposals,​ Prospects
Phone Calls
Meetings
Administration (bookkeeping,​ correspondence,​ contracts,​ reports)
Training
Variables Affecting Prices
Geography
Demography
Niche
Experience
Perceived value
Skills
Client capacity to​ pay/realize value from your work
Cost of​ delivering services
Competitors' fees
Is It Time to​ Raise Your Fees?
Full calendar
Reputation as​ leader or​ expert
Turning away work
Recognized author or​ speaker
Prestigious affiliations or​ awards
Advanced training/certification
Improved services
Increased costs
Strategies for Raising Prices
Annual incremental increases
Business cycle increases
Going rate increases
Be sure the​ going rate is​ set by going concerns!
Do going rates reflect your costs and services?
More work to​ justify rate increases of​ more than 10%
Keep clients informed of​ how great you​ are
Training and skill development
Concern for their well-being
Improvements in​ service and capacity
How you​ saved them time or​ money
How you​ made them money
How you​ solved problems for them or​ for others
How much you​ are in​ demand
Create a​ mood that supports your declaration of​ value
The body of​ confidence
What Clients Want to​ Know When you​ Raise Prices
What are the​ new rates?
When do they go into effect?
Give reasonable notice
Consider giving current clients a​ grace period to​ adjust
Why are they going up?
What value will the​ client receive for the​ higher fees?
Adjust Prices to​ Manage Work Type and Work Flow
Projects you​ don't really want
Rush work
Difficult clients
Profit is​ commensurate with risk (and distaste!)




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