Somebody just asked me recently about pricing, and do I believe that the owners of small business charge enough or charge too little, what what is it. So, there’s a couple of different things I’ll say about that.
When I started my business, there was a recommended range to charge for our services, and I remember being brand new going I don’t know, I don’t know about that. And, charging less than what was recommended because that’s what I was confident to be able to ask for.
At the end of the day, sales and money is the confidence to ask for it. As I got better and better, I felt more and more comfortable asking for more.
In professional services type of companies, I recommend that they increase their rates about every year to two years. No more than two years between increasing rates, and that’s on the professional services side.
Now, obviously if you’re the owner of a small business that has products that may be different because as we manufacture and we get better and better at manufacturing we can drive prices down on products.
But, in services, it’s a totally different matter. The more experience and knowledge and exposure and wherewithal that a professional services person brings to the table the more value they can add and thus their rates should probably be increasing and commiserate with that.