New Year's Eve is the perfect time to implement a rate increase. Raising your prices? Your customers can see you coming! However, you are doing yourself a disservice if you keep your rates the same. Because your services add value, and you are leaving money on the table if you do not value them properly. Moreover, if you do not adjust your rates to inflation, you will have less left at the bottom line. A shame.
Indexing can be learned; I will point out the pitfalls and answer sms gateway hungary the questions that most agencies have about this topic: how do you calculate your hourly rate? What hourly rate do your competitors charge? And how can you best communicate an increase? With these tips, you will get every customer on board.
With this hourly rate you will achieve your financial goals
Your hourly rate has a direct impact on your total invoiceable turnover. Quite important. But how do you determine your hourly rate? You determine your minimum hourly rate based on three ingredients from your business model: your expected expenses, the profit margins you want to achieve and your capacity.
List all expected expenses. Also take taxes into account.
Determine your sales targets in advance.
Map your capacity. Multiply the number of FTEs by your productivity standard.
You now know how many hours you can spend on customers this calendar year.
Is this higher than your current rate? Research shows that the first 10% price increase is not a problem in the mind of the customer. So you can easily apply that. A price increase of 10 to 20% can only be done with a good story.