![\"\"](\"http:\/\/nspg-software.com\/ads\/graphics\/MP900341424B.jpg\")
You live modestly and you still don’t have enough money to make ends meet. If you are skilled enough to provide a good service, you should be able to earn enough to live on. While it’s not unusual for new businesses to struggle, established businesses with reasonable word of mouth and repeat business should be able to prosper in almost any economy.<\/li>\n![\"\"](\"http:\/\/nspg-software.com\/ads\/graphics\/Photoxpress_2044786.jpg\")
These signs that you need to raise your rates can drive you in two directions. You can either raise your rates, or cut your costs. If you’ve made it to this point in this economy, chances are that you have already cut things to the bone. Take a look at your costs using a tool like Numbers Cruncher or any of the breakeven calculators that industry associations provide to see if you can cut more, and still stay in business.<\/p>\n
If you’ve looked at all of your costs, and you can’t cut any more, your only real option is to raise your rates. Knowing your actual breakeven can make this easier to do. Your choice will be to continue to short change yourself and your employees by charging too little, or you can ask your customers to pay a more reasonable price.<\/p>\n
Once you’ve firmly established where you stand financially, you can make the decision that is right for your business. Remember that any reasonable choice you make that will allow you to continue to provide your customers with the services they need, benefits your customers too.<\/p>\n
One of the hardest things \t\t\t\t\t\tabout running your own business is raising your rates. \t\t\t\t\t\tAnd, with the way the economy has been the last few \t\t\t\t\t\tyears, it’s doubly hard.\u00a0After you’ve cut your \t\t\t\t\t\tcosts as much as you can, it’s probably time to consider \t\t\t\t\t\tchanging what you charge.\u00a0 Especially in bad times, \t\t\t\t\t\tcharging enough to make a profit is critical to your \t\t\t\t\t\tbusiness success. <\/span><\/p>\n Almost everyone believes \t\t\t\t\t\tthat raising your rates will cause you to lose jobs. The \t\t\t\t\t\ttruth is that having lower rates doesn’t always mean \t\t\t\t\t\thaving more customers and profits. The ultra price sensitive \t\t\t\t\t\tcustomers that you have may not be the customers that \t\t\t\t\t\tyou really want to keep. <\/span><\/p>\n So let’s take a look at \t\t\t\t\t\tsome of the signs that you may be charging too little.<\/span><\/p>\n You have to work more \t\t\t\t\t\t\tthan 60 hours a week just to get by. If you want to \t\t\t\t\t\t\twork that much because you like what you’re doing, \t\t\t\t\t\t\tgo ahead.\u00a0 If you have to work that much \t\t\t\t\t\t\tbecause your business can’t survive on fewer hours, \t\t\t\t\t\t\tyou have a real problem. Everyone needs some time \t\t\t\t\t\t\toff occasionally.<\/span><\/p>\n<\/li>\n You can’t afford to \t\t\t\t\t\t\tupgrade the tools you really need to do your job. We \t\t\t\t\t\t\tall\u00a0 depend on our tools to provide the \t\t\t\t\t\t\tservices we specialize in.\u00a0 When things wear \t\t\t\t\t\t\tout and technology changes, we need to have the means \t\t\t\t\t\t\tto replace and upgrade. Replacements and upgrades \t\t\t\t\t\t\tare just a part of normal business expenses. <\/span><\/p>\n<\/li>\n You have a family \t\t\t\t\t\t\tmember working in the office for little or no \t\t\t\t\t\t\tsalary.<\/span><\/p>\n<\/li>\n Your rate hasn’t \t\t\t\t\t\t\tchanged in years. Are you still charging what you \t\t\t\t\t\t\tcharged a year ago, or even five years ago? It’s \t\t\t\t\t\t\tnot uncommon to hear about businesses that never \t\t\t\t\t\t\traise their rates. As we always say, \t\t\t\t\t\t\tMeasure Monthly, Adjust \t\t\t\t\t\t\tQuarterly<\/strong><\/span>.\u00a0 Even in times of low \t\t\t\t\t\t\tinflation, your costs go up.<\/span><\/p>\n<\/li>\n You always feel \t\t\t\t\t\t\tdesperate when submitting a new proposal because \t\t\t\t\t\t\tyour business is one or two payments away from shutting \t\t\t\t\t\t\tdown. Sometimes businesses find themselves in an \t\t\t\t\t\t\teconomic hole, and feeling that you have to win a \t\t\t\t\t\t\tparticular bid is normal.\u00a0 But, if your rates \t\t\t\t\t\t\tare so low that you’re always feeling desperate, \t\t\t\t\t\t\tit’s time for a change.<\/span><\/p>\n<\/li>\n<\/ul>\n These signs that you need \t\t\t\t\t\tto raise your rates can drive you in two directions.\u00a0 \t\t\t\t\t\tYou can either raise your rates, or cut your costs.\u00a0 \t\t\t\t\t\tIf you’ve made it to this point in this economy, chances \t\t\t\t\t\tare that you have already cut things to the bone. \t\t\t\t\t\t If you’ve looked at all of \t\t\t\t\t\tyour costs, and you can’t cut any more, your only real \t\t\t\t\t\toption is to raise your rates.\u00a0 Knowing your actual \t\t\t\t\t\tbreakeven can make this easier to do.\u00a0 Your choice \t\t\t\t\t\twill be to continue to short change yourself and your \t\t\t\t\t\temployees by charging too little, or you can ask your \t\t\t\t\t\tcustomers to pay a more reasonable price.<\/span><\/p>\n Once you’ve firmly \t\t\t\t\t\testablished where you stand financially, you can make \t\t\t\t\t\tthe decision that is right for your business.\u00a0 \t\t\t\t\t\tRemember that any reasonable choice you make that will \t\t\t\t\t\tallow you to continue to provide your customers with the \t\t\t\t\t\tservices they need, benefits your customers too. <\/span><\/div>\n","protected":false},"excerpt":{"rendered":" If you’ve looked at all of your costs, and you can’t cut any more, your only real option is to raise your rates. Knowing your actual breakeven can make this easier to do. Your choice will be to continue to short change yourself and your employees by charging too little, or you can ask your customers to pay a more reasonable price. Continue reading \n
![\"\"](\"..\/..\/ads\/graphics\/MP900341424B.jpg\")
You \t\t\t\t\t\t\tlive modestly and you still don’t have enough money \t\t\t\t\t\t\tto make ends meet.\u00a0 If you are skilled enough \t\t\t\t\t\t\tto provide a good service, you should be able to earn \t\t\t\t\t\t\tenough to live on. While it’s not unusual for new \t\t\t\t\t\t\tbusinesses to struggle, established businesses with \t\t\t\t\t\t\treasonable word of mouth and repeat business should \t\t\t\t\t\t\tbe able to prosper in almost any economy.<\/span><\/p>\n<\/li>\n![\"\"](\"..\/..\/ads\/graphics\/Photoxpress_2044786.jpg\")
Take a look at your costs using a tool like Numbers \t\t\t\t\t\tCruncher or any of the breakeven calculators that \t\t\t\t\t\tindustry associations provide to see if you can cut more, and still stay in business.<\/span><\/p>\n