Five signs you’re undercharging for your company services
It’s a question every small or medium-sized business owner asks themselves when discussing their growing business, are we undercharging for our services? It can be hard to tell, particularly if you’re in a niche industry or you’re a contractor. With covid disrupting most markets, costs have been rising, so it may be time to rethink your own pricing.
Here are five signs that you might be undercharging from the Lombard Accountants team:
- Nobody ever questions your quotes – Do all your new clients accept your quotes without asking any questions or requesting a breakdown of services Do they ever request a discount? It’s possible they’re delighted to be getting such a great deal and that is a sign you need to realise your value and increase pricing.
- You run off your feet but you can’t afford to get help – When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low – or something else needs to change.
- Your prices have been the same for two years or more – In most industries, prices increase just slightly annually. Leaving your prices flat for too long whilst you improve your output and productivity is damaging in the long run; make sure you review your fees annually.
- You’re overbooked – When business is booming and there’s no room for new clients, it’s time to review your pricing.
- Clients don’t treat you as well as they should – When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.
We at Lombard Accountants understand that finding your pricing sweet spot can be a process that takes a little time. You’ll need to do some research, maybe ask around a little, and find out where your competitors are pitching their rates.
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