Home – New Forums Money matters Price increase

  • This topic is empty.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #999195
    HC
    Member
    • Total posts: 1
    Up
    0
    ::

    Hi,

    I want to make sure I am charging enough for my services each year and I’m keeping up with the cost of living etc and was wondering what percentage I should raise my prices etc year. I am in the automotive industry. I charge an hourly rate of $70 per hour.

    Thanks

    #1218315
    Rowan@quaotic
    Participant
    • Total posts: 712
    Up
    0
    ::

    I don’t think there is an easy answer to that question. Do you make an income that you can live with after all expenses? Go from there.

    #1218316
    LucasArthur
    Participant
    • Total posts: 3,171
    Up
    0
    ::

    There is, IMO, two components to this question..

    Firstly, it’s about earning enough to keep up with the cost of living… only you can answer this

    Secondly, this is a more discreet side of it although are you charging enough and how much you can charge as a percentage increase for your wage?

    Really, I think you need to input all business costs (inc your wages and so forth) and then work it backwards about how many hours you work and so forth to come down to a base cost requirement to be charged per hour.. funnily, I think there is a tool here in FS?

    It’s not about just increasing it on a regular basis, but you are right about keeping up with living… devils advocate though, most business services can only burden so much per hour – and just because an owner wants a BMW or a yacht (not saying you) doesn’t mean you have to charge more per hour? Maybe you need to explore leveraging other people’s labour to make money

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1218317
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,488
    Up
    0
    ::

    Hi And Welcome to Flying Solo [USER=50112]@HC[/USER] .

    It is great to have you!

    Thank you for joining our community and posting today.

    I agree that it is a difficult decision you have.

    You might find different answers to different questions you may ask.

    For example, if you ask the question how much do I charge to keep up with the cost of living, apply the CPI and you have an answer.

    If you ask, how do I become more profitable than I am or how can I maximise my profitability, there are lots of avenues to explore eg, like Jason said, make money off employing others, or enter a niche field and get known as an expert or expand the services you offer or expand the locations you service and the list goes on… and on…

    Cheers

    #1218318
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::

    As a customer I think you are over priced and a rip off. But that comment would apply if you were charging $10 per hour or $150 per hour!!!!!!!!!!!!!!!!, The reason for that comment is, you need to look wider then what the customer thinks, but within reason.

    All great advise so far, but one which has being missed is that you need to look at your competition as well, if they are all charging $60 then well unless you have far higher quality work, you will go out backwards. But if they are charging $90, then you need to seriously look at your pricing.

    You do need to consider that customers wont put up with large price increases in one hit, so you need to ensure you do keep your price increases each year.

Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.