Increase your fees by 10% today.
Yes, just do it.
“Why?” you wonder.
It’s not related to the calendar or to increased expenses.
It’s because you’re delivering more significant differences to clients today and in the coming months than you did before.
Compounding
I believe that compounding works for your professional or business services firm just as compounding works on your money.
When you leave the first year’s interest in the account, the following year’s interest is on both the original deposit and the first year’s interest. The longer you leave the interest in the account, the more compounding and the greater your balance grows.
Professional and business services work the same and even better!
You deliver some life changing differences to your clients in year one. You build on those to deliver even greater life changing differences in year two.
The better part is that if you start with a new client in year two, you start at the same place as you are with existing clients. You don’t go back to the beginning because you are already more capable than you were at the beginning of year one.
Each year you build on the previous year’s differences. Clients’ lives continue to change for the better and the fees you charge increase proportionally.
That’s why you should increase fees right now by 10%.
Because I bet you haven’t accounted for the increase in how you’re making a difference in client’s lives.
The IMPACT of 10%
The 10% increase is in recognition of the differences you’re making in client’s lives right now.
That means that you will not incur increased operating expenses or increased personnel expenses. So the 10% revenue increase falls right to your bottom line. (I am making this super simple, don’t miss the forest for the trees.)
Current Revenue: $1,000,000
Total current expenses -800,000
Profit $ 200,000
10% increase
Revenue $1,100,000
Total current expenses -800,000
Profit $ 300,000
You now have $100,000 more profit.
It’s up to you to decide how to use that additional profit. Get good advice from a growth minded accountant (not a tax savings accountant) or a CFO.
Options for your extra profit
- Upgrade your technology. Focus on tech that increases productivity and reduces manual or repetitive work. One example is ensuring seamless integration between your proposal software and your invoicing system. It’s worth it to pay for quality consulting and help getting set up and running.
- Invest in retaining current clients. Take the time to visit with clients and learn how they see upcoming needs, wants, and desires. Talk with them about whether those are on the critical path and how significant it would be to them to get them satisfied. List the IMPACTs you can deliver and offer those to them with proportionally higher fees.
- Invest in marketing and your online presence. You want to be sure that what people see and read reflects the IMPACTs you are currently delivering, not what you delivered a year ago. The effects of compounding should show in all your marketing.
These ideas focus on acclerating your firm’s ability to deliver IMPACTs year after year.
You have others. Choose what works for you.
It boils down to this
You’ll be earning 10% more because of the the increasingly significant IMPACTs you deliver.
Why make a bigger difference and not get paid for it?
Something holding you back?
Schedule a Virtual Coffee or text 10PERCENT to 703-801-0345.
