I received a great question in my inbox that I wanted to answer here.
Q: What's a positive way to go about a price increase -- announce privately to all existing clients and offer a month's notice so if they have anything they want under current pricing it's up to them to get it to me before then?
A: First off, congratulations on increasing your rates. This is a much missed strategy for curating a sustainable business. We all have to respond regularly to two things in our business:
- The fact that there is inflation and we can't keep our rates the same forever and still be able to pay our bills.
- The fact that the more you edit, the faster you get. This means that if you are charging by the hour, your take home pay will actually get smaller the better you get at editing! Can't have that.
And yes, you got it! A positive way to announce your rate increase is to give your clients a grand heads up. You get to decide how long they can stay at the current rate, whether it be a month or two or more. When I raised my rates last, I decided that projects received after the turn of the calendar year were going to be at the new rate for my current clients, so I sent an email in October to everyone telling them about the rate change and effective date, and that they would stay at their current rate until that date. (Also gave me time to update all the various spots my rate was listed.) My regular clients scrambled to fill up my calendar before my rate change--that was nice!
What about new people? You can handle it a couple ways:
- Make your new rate effective immediately for new clients, but grandfather return clients on old rate until your change goes into effect for them. It's kind of an admin hurdle, but only for a short time.
- Change it for everyone at the same time, with heads up. You could use this "lower rate period" as an incentive to get some more clients on your books before your rates go up.
How do you announce it?
Send an email (could be bcc to everyone, but also individual) listing just the facts: what the new rate will be and when exactly it goes into effect, giving detail on how you will handle projects in process. Make it short and sweet and to the point. It is important that you inform your clients that the cost to hire you is changing in writing. Say again how much you appreciate their business and support and are looking forward to their next projects. Please don't:
- Apologize
- Explain
- Back down if someone complains
So here's a secret. Eventually you will be an awesome, sought-after, in demand editor. You and your particular skills will be valuable! Eventually some people you work with won't be able to afford you. And that is okay. Raising your rates not only increases your revenue, it also hones your client list to exactly the people who will pay whatever you charge to keep you in their back pocket.
If you are overbooked and overworked, the secret is to raise your rates. Raise your rates until you have the client load you can support, in that sweet spot of loving the people and projects in your inbox.
Good luck and happy pricing yourself!
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What questions do you have about pricing yourself? Hit reply and ask!
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Did you see this?
I spent some time pontificating about why we need community as editors over in the FB group. Check it out at the link below. And you can still join our private paid community for free for a week to test it out. I am keeping that offer open until 9/14.
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In the FB Group
What do you use to manage your customer relationships?
What is your favorite editing reference book?
Doing some beach knitting one last time this season,
Sarah
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I am a knitting technical editor, author, and sweater nerd. I like coffee, puzzles, many books (all at once), and a good sniff of yarn fumes. This Hub is all about helping *you* find success as a technical editor from any direction that works.
When you are ready:
- Learn to tech edit knitting patterns or crochet patterns. Get training and real pattern practice before you take on clients.
- Schedule a strategy session with me. Go deep and get unstuck.
- Join the editor-only community for collaboration, 24-7 support and more skills, including building that business.
- Or just book a virtual cuppa with me. How can I help you?
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