#315 // Why You Should Raise Your Rates On July 1 (Part 1) with Greg Crowe
About this episode
The episode discusses the importance of raising rates and the implications of not doing so for business profitability.
July 1 is coming up, and there really is no better time to consider a rise in rates + margins. Today we discuss the pros and cons of considering increases. Why you should raise your rates… Make money. Build wealth. Be kind. It all starts with making money You deserve a market wage + super + a business net profit of 20-35% You’re currently oncosting yourself as 1 full time position but really you are doing 2 positions (ie 30-40 hours of “volunteer” admin work at night time). If you paid someone to do this, your overhead per hour would increase and you would either be losing money or making less money If you don’t raise your prices, every hour is costing you more and out of every dollar you are keeping less. The price of everything has gone up (subscriptions, petrol, staff, super, interest etc) A $45 to $50 wage increase for your key tradie has just cost you $10k Why you shouldn’t raise your rates… You feel dirty like you’re ripping someone off You fear success / failure / making money You are uncomfortable having hard conversations You fear the unknown // what happens if someone pushes back? What happens if you lose clients? Is it worth it? If you’re currently charging too low…
More episodes of Sparky Coach
- #322 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 8) with Greg Crowe
- #321 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 7) with Greg Crowe
- #320 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 6) with Greg Crowe
- #319 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 5) with Greg Crowe
- #318 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 4) with Greg Crowe
- #317 // “Five Simple Ways To Make More Money In Your Electrical Business (Part 3) with Greg Crowe
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