Raising Your Rates

  • Category: Business ModelFees

As consultants and advisors, we’re actually much better positioned to raise our prices than those who produce physical products.

The challenge—depending on how you structure your practice—is deciding exactly how to go about increasing your fees and revenue.

Jonathan and I explore hourly rates vs. price, the difference between pricing products and services and why tinkering with your prices is a good thing.

Quotables

“But for folks like us, it’s actually not that complicated because by and large, we’re not getting bulk discounts on anything. We don’t have, like, a supply chain or anything like that.” –JS

“There are all sorts of reasons why hourly rates are bad. There’s a couple situations where they can really work, but the thing that I find really difficult with them is you’re inviting your client to speculate about how you spend your time.” –RM

“Folks who bill by the hour usually in their marketing don’t project themselves in a way that’s clear to their buyers exactly what the heck they do.” –JS

“It doesn’t make them a bad client or you a bad consultant, but there are times when you just need to go out and get new clients, new people, experiment with different approaches and learn.” –RM