As a self-employed person, it is smart to take a close look at your hourly rate from time to time. After all, you are learning more and more, your costs are going up and the market is also changing. Yet many entrepreneurs find it exciting to raise their rates. For instance, they are afraid that clients will then drop out or think it is not professional. In this article, you will read how to adjust your rate in a smart and businesslike way. That way you keep growing and get paid fairly.
Why increase your hourly rate?
Charging a higher rate is not crazy. Indeed, it is often just necessary. Many self-employed people adjust their rates for good reasons. Here are a few.
- Your costs go up: Think more expensive insurance, higher energy bills or new software. So if your rate stays the same, you will keep less.
- You get better and better at your job: You learn, you grow and maybe now you even specialise. A nicer rate certainly fits that.
- The market is changing: In your industry, rates are going up. If you are left behind, you are selling yourself short.
- You want to grow further: Maybe you want to invest in your business or work fewer hours for the same income. A higher rate makes such a thing possible.
When does an increase make sense?
There are times when it is extra smart to raise your rate. Pick such a moment with a little strategy.
- At the start of the new year: Customers understand that rates change in January. It feels like a logical time for a new price.
- On new clients or assignments: You can immediately quote your new rate on a new order. No hassle afterwards.
- After training or certification: You have learnt something and are delivering more value. That can be seen and paid for.
- If your rate has been the same for a long time: Then it's just time for a small rise. Even if it's just a few euros. It all adds up.
How do you increase your rate?
Good preparation really makes all the difference. This is how you come across as confident when raising your rate. This helps you as an entrepreneur.
- Calculate what your ideal rate is: Look at your costs, how many hours you can bill and what you want to earn. This will give you a well-founded figure.
- Check what others are asking: Find out what fellow freelancers charge with roughly the same experience. That will give you a little grip and confidence.
- Let us know in time: Tell regular customers one or two months in advance that your rates are changing. In this, be clear and friendly.
- Explain it calmly and professionally: There is no need to apologise. Just tell that you have grown, that your costs have increased or that you are positioning yourself differently.
- Do something extra for loyal customers: Consider a temporary transitional tariff or a small extra service as a thank-you.
Conclusion
Raising your hourly rate is part and parcel of being an entrepreneur. Many clients understand that, especially if you explain well why. So be clear, let them know in time and remain friendly and professional. In this way, you show that you know your value and dare to state it. And that is good for you and your business.
