New Year's Experiment for all technibble members

[BostonGeek1]

Just for fun..........when your NEXT potential customer asks what your rates are, quote them 30% more than what you normally charge (unless your rates are posted, because that would be shady).............let me know how it went.

 

[ATTech]

Just for fun..........when your NEXT potential customer asks what your rates are, quote them 30% more than what you normally charge (unless your rates are posted, because that would be shady).............let me know how it went.

Just for Fun? At what point would potentially losing clients (and by extension, income) due to higher rates be fun?

 

[Paul Rodgers]

Just for Fun? At what point would potentially losing clients (and by extension, income) due to higher rates be fun?

He just wants all of our clients

 

[16k_zx81]

LOL I think he's saying we can probably get away with charging more than we do...

cmon, who's game?

 

[14049752]

Ummm...no. I think there are some of us who've thought our rates through and adjust them correctly over time.

For those of you who charge five bucks and a coke, this probably wouldn't hurt you too bad, though.

 

[angry_geek]

I don't know whether to take this seriously or not. What are you going to do with your existing clients? Just send them a thank you on their next invoice with a 30% increase?

 

[MrUnknown]

everyone on here is taking this a little too serious.

it is mostly a simple experiment. Most people will pay the higher rate, I know I could easily charge more. If you are worth more, why not charge it?

Geek Squad gets away with it and they know nothing.Technically we are worth at least as much as they charge, but how many people on here charge $200 for a virus removal?

 

[callthatgirl]

I'm for sure changing rates on Jan 1, might not be 30% but close. I'll tell you how it works out Feb 1.

 

[BostonGeek1]

I said your NEXT POTENTIAL customer. I didn't say all your potential customers . I meant 1..... as an experiment for fun

 

[muncherw]

For those of you who charge five bucks and a coke, this probably wouldn't hurt you too bad, though.

That'll be $6.50 and instead of the can of Coke you normally give me I want a bottle but you can go ahead and take about 3 drinks out of it first.

 

[Mushin]

I have to chime in on this.

A rate increase can be justified so long and you don't get too agressive. The costs of things are upright now with fule in the U.S. on the rise so that alone could make it necessary for someone to increase rates. We use a flat rate model and are trying to keep rates as low as possible while still maintaining realistic profit margin.

In the case of flat rate services you may a $5.00, $10, $15, or $20 increase depending on the services. In most cases this increase will not negatively impact you potential clients.

I think that rather than just blindly increasing rates a full examination of your business would be very wise. Take some time to really look at overall expenses, income, etc and determine what you need to charge to earn what you need to year. I have been spending the last week doing a numbers dive and examining all the service records for 2010 and found some areas that we need to improve. Some of these involve pricing, others involve processes, and still others involve improving communications with clients so they understand the value of services better.

All of these things can impact profitability which in the end is what we are actually talking about when considering a rate increase.

So I would say what can you do overall to increase profitability in 2011 by 30% and what can you do to increase the number of work orders by 10%, 15%, 20% etc. If you can increase profit AND increase your work orders then you will have a very successful year.

 

[ComputerStop]

I was debating a rate increase for the new year - we currently charge $75 per hour (set hours per job - 1 hour for virus removal, 2 hours for nuke & pave, .5 hour for small software installs or hardware, etc.).

I was looking at going to $85 which would be about a 13% increase. In my market I am in the middle for how much we charge, some are higher, some are lower (not counting pizza techs that charge $15 for virus removal).

I know that we are worth it we have the best turn around time in my area (normally less than 24 hours), we dress more professionally than competition (uniforms instead of jeans and stained t shirts), and I think we are just more customer service oriented.

Reasons why I want to increase -

Rent just increased 15%
Gas Prices
Electricity rate just went up about 5%
I would like to cushion the bank even more.



I'll let everyone know how it goes starting on Jan 3rd. (if i decide to go through with it of course)

 

[meanderer]

I am raising my rate coming 1/1/11. But I wouldn't be so loud about it. Just a few dollars more here and there.

 

[16k_zx81]

Oh bugger it. Im charging everyone 50% more.... and DOUBLE if they are ANNOYING

<joke>

Seriously though wish you all well for the New Year and hope all good things come to y'all in business and in life in general

Jim

 

[norm1320]

my business plan already has my rate increases scheduled for 1/1/11, 7/1/11, 1/1/12, and 7/1/12. Perhaps I'll try the experiment on 1/1/13, I'll let you know. lol

 

[callthatgirl]

LOL@16K

I have been planning this and have been telling my clients for awhile on and off. Many have told me that I'm way too low as it is, so my pricing goes up and it's determined by the tech and time.

My personal tech time will be an of 20% increase.
Our remote cleanings a flat fee of $75 and the back end techs do those.
If you schedule an appt with a back end tech, it's $75 an hour
Virus repair is still up in the air, for sure going for a flat fee or per hour, not sure yet. I might do both.

My office prices will probably go down a bit, I am doing a pro-rated hourly thing as I'm new to this location and can do it. Might as well!

 

[JAG Computers]

That'll be $6.50 and instead of the can of Coke you normally give me I want a bottle but you can go ahead and take about 3 drinks out of it first.

I had a good laugh over this one

 

[muncherw]

Just for fun..........when your NEXT potential customer asks what your rates are, quote them 30% more than what you normally charge (unless your rates are posted, because that would be shady).............let me know how it went.

It's 2 weeks into the new year, BostonGeek1. Have you tried this yet?

 

[GreenCycleComputers]

I've got a better idea. I'll just find one person who doesn't mind a one time 10,000% increase in price, work for 3 hours and retire.