Just realized my neighbor's simple advice about pricing saved my month

I was complaining about a slow week to my neighbor, who runs a small landscaping business, and he said, 'If you're always busy, you're charging too little.' That hit different because I've been undercutting myself for a year just to get jobs. How do you figure out your real rate without scaring clients off?

3 comments

3 Comments

leet3223d ago

Took me way too long to learn that lesson myself, I was basically paying people to let me work for them. Start by adding up all your real costs, then pay yourself a real wage on top. It feels scary to say the new number out loud, but the right clients will get it. You'll work less but actually make money, it's a wild switch.

butler.mark23d ago

My buddy ran a small print shop and was always stressed about money. He finally sat down and added up his rent, ink, machine repairs, everything. Doubled his old rate and lost a few regulars who just wanted cheap copies. The clients who stayed actually respected his work more, and now he takes weekends off for the first time in years.

finley7775d ago

Wait but what if you're in a super crowded market though? Like @butler.mark's friend had a print shop, but what if there are five other shops on the same block all fighting for the cheapest price? Doubling your rate sounds great in theory but you might just price yourself out completely. Sometimes you gotta take the lower paying jobs just to keep the lights on while you build up a name.