“Hi, I’m [Insert Name]. I Own a Marketing Agency and I Don’t Charge Enough”
Ever wonder if your marketing company is charging enough?
Here’s how to tell: If you have too much work and you’re too busy, then you’re not charging enough.
Does this sound like you?
Think back about the last couple of clients that went really well for you. The ones where you provided a lot of value and delivered really stellar results. Now think about how much you charged them. Was it enough?
Most likely not. You’re probably charging what you think is a “respectable” amount; something you think the client is likely to agree to pay. Or worse – you have an amount to charge but when you give the figure to the client, you undercut yourself by knocking off money. Don’t do that!
Raise the rates.
You need a new formula. Specifically, this one:
X number of project hours + 25% for profit + 25% for “oh no’s”
Meaning if you have a 100 hour project, you take that cost and add 50% to cover profit and those pesky incidentals. The minimum you should be charging is 50% more than it costs to do the work.
And stop assuming that the client isn’t going to pay that kind of price. If you’re selling them on the value and the results, they won’t have a problem paying. You could end up raising your rates by 100%. I did, and guess what happened – the clients paid!
But if you show them value and the results you can bring them, and they still don’t want to pay then you’re talking to the wrong audience. And that’s okay. All that means is that you need to go back and look at what kind of clients you want to work with and be selective about whose work you’ll accept.
Get to the next level.
It’s this simple: look back at successful clients, figure out how much those projects cost you, add 50% and raise the rates!
Here’s what you need to do next.
Use the comments section below and let me know if you feel you charge enough. If you do, what is your secret?