4 Ways to Make More Money Without Raising Your Rates
No matter the size or industry, there is one thing every business has in common – the goal to make more money. Once you’ve established yourself in the market and increased the demand for your goods or services, it’s common sense to slightly increase your prices as well. However, too many years of this gradual price-creep can eventually price you out of the market and lose you clients.
It’s important that all business owners realize that simply slapping on a higher price tag isn’t the only way to make more money. Instead, think strategically and put the effort into learning how you can better serve your existing customers. In doing so, you will see that there are at least four different ways to make more money without raising your rates.
1. Restructure existing contracts
At least once a year, you should sit down with each of your existing clients and review their current contracts. Foremost, you should be doing this to be sure that your services are meeting their changing needs. Additionally, this provides an opportunity to present new ways in which you can help them.
Restructuring your clients’ existing contracts by taking out the services that aren’t producing a good ROI and replacing them with new services that will gives you the ability to bundle these services with a new price tag. In the end, the client is a new and more effective package of services and you are getting a new contract that reflects your current pricing.
2. Turn one-time projects into monthly retainers
In my line of business, I have both ongoing (retainer) projects and one-time projects. I have a found a lot of value in getting to work with a client on a small, fixed-timeline project, growing a relationship with them and then suggesting ways in which I can help them on an ongoing basis.
For example, I might be hired to re-write the content on a client’s website. Seeing that this new website also has a blog section, I might suggest my monthly blog writing services to help take this workload off their hands. I’ve now created a reoccurring stream of income that has the potential to be much greater than that initial project—all without having to raise the price of my website copywriting services.
3. Work with vendors who offer a referral program
This is such a smart, but commonly untapped, revenue stream. I work with many different vendors including professional graphic design artists, printers, website designers and marketing consultants. I’ve also developed a referral program with many of these vendors.
In some cases, I receive a percentage of the total cost of services they complete for a client and in other cases it’s a one-time referral fee. No matter the structure, this is an extra source of income that isn’t billed to the client at all. It’s the value or working with vendors you know and trust and have the best interest for each of your businesses in mind.
4. Become more efficient with your time to increase your bandwidth
The reward for good work is more work, right? Well, the more efficient you can become at completing the work for your existing clients, the more bandwidth you will have to take on additional work – and earn additional income.
I’ve found that after working with any client for a quarter, I can complete the tasks quicker and with better quality. There’s a steep learning curve for sure, but once you get past that you will also become more efficient with your tasks. Whether you choose to use this extra bandwidth to take on more clients or to simply schedule in some relaxation, there is value in this time!
Bonus tip: Over deliver with quality and customer service. One of the best and most basic ways to ensure a steady pipeline of leads is to inspire your current clients to make word of mouth recommendations for your services to their network. Before you spend your time attending business mixers and networking meetings, first put the effort into making sure your current clients are fully satisfied with your work. This will make them want to talk about you to everyone they know. And not much is more powerful than a glowing word of mouth referral to a second-degree connection!
Have you used any of these ways to make more money without raising your rates? Join in the discussion by commenting below!