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Fee Phobia: Raising Fees
September 12, 2008
Raising rates is just a fact of business. Making a profit is, after all, the whole point of the game. Most people see their own costs going up, and won’t be surprised that you’re raising your fees, too. With proper communication about it, you should be able to raise your fees effortlessly. After all, your overhead costs have risen. Yes, there is a delicate balance between the fee you need to charge for your products and services, and the fee that people are willing to pay for them. If it's a reasonable rate increase, it shouldn't drive your customers away. Time a rate increase to coincide with a natural new beginning — a new contract, a new year, etc. Just be sure that you don't raise your fees so high that your customers go elsewhere.
Don’t let fear get the best of you like many small businesses that set their prices extremely low when they first open their doors and fail to raise them, ever. Afraid they will drive away customers, these types of store owners get stuck in time, charging and getting paid amounts that are years out of date, yet all the while, inflation and the cost of doing business continue to rise.
Posted by Shanu Singh Guliani on September 12, 2008 | Comments (0)
