News

It’s time to put your prices up!

With the end of the financial year upon us, now is an excellent time to put in place a general price rise for your products and services that your business provides.

Whether you’re a one man band or a multi million dollar corporation, our message to you is don’t be afraid to put your prices up on a regular basis. It is better to have small rises every year rather than hold off and then put prices up every 3 or 4 years by a large amount.

So we recommend that you put up your prices/hourly charge-out rate by at least the annual inflation rate which at the moment is about 3%. Put your prices up by this amount every year. So if your charge out rate is $35 per hour, put it up to $37 per hour. This may not sound like much but at the end of the year it adds up to a considerable amount which helps you to get ahead. It maybe that you can increase it by more than this. Perhaps you’re under priced in your industry. Perhaps you can put your prices up by 10%. Our message is don’t be afraid to charge what you’re worth because you are worth it. If you provide top quality work, top quality products and service, on time performance, then your customers won’t worry about a small price rise every year. Underneath your customers actually expect your prices to go up but they’ll never tell you! The thing to remember is that we are all used to prices going up every year on many items we buy and if you don’t put your prices up, you’re the one that’s losing. In fact your customers may even be wondering what’s wrong if you don’t have price rises for your products and services.

We commonly hear that ‘if I put my prices up, I’ll lose my customers’. This is a total myth and we don’t believe in it for a minute. Look around you and see how prices for items you buy are rising all the time – do you stop buying because of this? – of course you don’t. If you want to survive in business today you must realise that your costs are going up all the time and so you need to put your prices up to make it worthwhile to be in business. The secret for success is for you to provide top quality work, top quality products and service, and on time performance.

So we would openly encourage you to put your prices up because when you come to us next, we might ask you, ‘Have you put your prices up?’