Don't despair – get help from a seasoned entrepreneur who has been there.

Money. You need it. Your clients have it.  But you have to ask for it.  Awkward.  It's time for a money breakthrough that will allow you to raise your rates. 

In our IT consulting business we've gotten pretty good at raising our rates without losing our clients.  What are the secrets to our success?

1.  Don't be desperate.

If you have one client and they are your only client, you aren't really an entrepreneur yet – you are probably an employee who should be getting benefits.  By having multiple clients, you can survive without any one account, so if you do risk the relationship to ask for a raise and they never work with you again (unlikely, but it's the big fear), your business can weather the loss.

Having plenty of work puts you in the driver's seat.  You are in demand, and they are willing to work with you in terms of price.

2.  Build in the idea of an annual increase.

When we started our IT business, it said right in our contract that rates would go up by 7% every year.  So if a client was caught off guard when they came back 10 years later and we were unable to work for the same rate, we could reference that we had disclosed the increase right in the initial contract they signed.  This moves them from a place of righteous indignation (how dare you make a living) to chagrin (should have read the contract) and gets the two of you back on more even footing.

3. Anchoring.

Just because you said in your paperwork that the rates would go up each year by 7%, you don't have to increase by that much if the client is already at the top of the range or if you don't feel comfortable asking for that much.  But by disclosing what the rate should be and then telling them the lower rate you are willing to work for them for, you've anchored at the higher number, rather than your old, lowest rate.

I hope these tips help you when the time comes to raise rates in your business or side hustle.  If you'd like to hire me to support you in growing your business and dealing with the money drama, schedule a free introductory call and we'll talk.