Time to raise your prices? One of the first considerations is to check the costs of running your business. Here are a few – outsourcing costs, electricity, internet, technology, accountant. For a longer list of costs see Video Business Tax Deductions.
What is your competition charging for the same service? If your prices are too low, you may be viewed as a bargain-basement provider That is not a winning strategy for a small business. But if your prices are too high, you may lose the sale to competitors. In that case you need to prove that your value is worth the price. Our widget repair service costs more because…
When you’ve decided to raise prices, you might raise prices to new customers first. This can give you confidence that your new prices are acceptable in the market. Then learn to identify new, better clients
As new customers provide feedback, you will see whether or not the market will readily absorb your price increase. If so, then it’s time to raise prices to existing clients. You’ll need to draft a letter or email, and be prepared to explain why you are raising prices. But do not apologize.
Even if you have a written price sheet, pricing the video job still requires thinking on your feet.
Try this as a rule of thumb:
If they say how much
You say ten
If they don’t flinch
You say thousand
If they don’t flinch
You say per hour
If they still don’t flinch
You say per guy.
While those rules of thumb are amusing, they do demonstrate how “Pricing the Video Job Requires Thinking On Your Feet.”
Low prices can be interpreted as an indicator of the quality of your work and if you charge too little, clients may think that you simply won’t do a good job. As a freelancer, you must always be learning and growing. If your hourly rates haven’t budged for years, they are not keeping pace with your skills and value.
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