As your service based business continues to grow your rates and value will continue to grow too. Many business owners are reluctant to raise their rates or to command higher rates because they feel they’ll lose clients and prospective jobs. However, the opposite is true. When you command the best rates, your perceived value will rise too. Here are five tips to command the best rates.
#1 Be professional. This may seem like the most obvious statement imaginable however, you’d be surprised to find out how unprofessional your competition can be. Always, be on your most professional behavior. That means responding to email and voicemail promptly, using proper and professional correspondence, treating the customer like a valuable asset and not a nuisance, by taking great pride in your business and your service, and by always being on time. This very simple philosophy will set you above 75-80% of your competition and people are much happier to spend a little more to be treated well.
#2 Specialize. People respect and are willing to pay more for specialists. You wouldn’t go to a general practitioner if you had cancer, right? You’d go to a cancer specialist and probably someone who specializes in your particular type of cancer because you want the best, the most knowledgeable person. The same holds true for your industry, whatever it may be. People are willing to pay more if you’re a specialist.
#3 Commit to professional development. Just because you’re an expert today doesn’t mean you’ll be an expert tomorrow. The world changes quickly and in order to be able to demand the best rates, you need to be on the cutting edge of your industry and always learning. Your prospects and clients will happily pay more to tap into your knowledge.
#4 Over deliver. You’ve probably heard the phrase, under promise and over deliver. While under promising may not be the best idea, delivering more than you promised is. People will remember that you went above and beyond and will be willing to pay for such great service.
#5 Know your competition. It’s important to know who your competition is so you can position yourself accordingly. Know not only what they charge for their services but also where they have weaknesses and where they are strong. Then you can position yourself apart and above them to demand higher rates.
Commanding the best rates is really about offering the best business service you can offer. When you accomplish that, people will be lined up to pay for your expertise and your service.