It’s about setting prices like a business, not giving in to fear, imposter syndrome, or the notion that you’re responsible for helping everyone, to the detriment of your family, and even your clients.
The Simple and Easy Way to Double Profits and 10x Assets
- Hourly rate $125
- Annual hours billed 1000 (about 20 hours/week)- Annual revenue $125k- Annual business expenses $100k- Annual profit (pre-tax) $25k (20% profit margin)- Savings rate 5% ($1.25k/year, if you can even afford that given your low income)
If you were my client, my initial priority would be to figure out why your expenses are so high. However, for our purposes here, let’s assume you can’t reduce them.
With the same hours worked, your income is now $150k. Your expenses are almost unchanged, with just a $2k increase in your annual credit card servicer fees, and possibly an extra $5k in marketing spend.
If your profit margin is low, increasing your rates modestly can double your profits and 10x your assets. If your margin is high, you’d need to increase your rates much more to achieve the same outcome.