Have you ever felt like you’re constantly hustling but never earning enough? Do you find yourself wondering when to raise your pet business rates so you can finally see the financial relief you deserve?
In the demanding world of pet services, understanding when to raise your pet business rates is crucial. I talk about it ALL on this episode.
The reality of what happens when you don't charge enough, the rising costs of everything in this world, and how this affects your bottom line if your prices are too low. I will share personal stories to illustrate what happens if you don't get this part of your business under control. People legit are going out of business because this subject isn't given enough care and attention. It isn't based off of emotions AT ALL.
We’ll explore actionable strategies, from analyzing your profit margins to mastering the art of setting rates that reflect your true value. You’ll learn how to break free from the cycle of financial anxiety and create a thriving business. By aligning your rates with your goals, you’ll attract better clients.
Tune in NOW!
Timestamps:
[00:00] Introduction to the topic of when to raise prices
[01:03] Signs it's time to raise prices
[06:30] Strategy and Discounts
[08:00] 30/30/40 Method
[09:30] Mathematical pricing vs. emotion-based
Notable Quotes:
"If your business is constantly running out of money, or you are constantly wondering if your card is going to get declined, then you're doing something wrong here, because most likely, you're probably working yourself like a dog, pun intended."
"If you're giving discounts off your initial price rather than an already inflated price, you're potentially undercutting your business's value."
"It should be a mathematical equation with a strategy that you employ."
Resources:
Pricing Structure & Strategy Class
Jump Mastermind
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Transcript:
Welcome back to another episode of Bella in Your Business. My name is Bella Vasta, and today we're going to talk about when it’s time to raise prices. This is probably one of the most popular topics I see discussed in Facebook groups, and it’s an important one. Raising prices isn’t just about making a quick decision to increase your rate by a few dollars. It's a more complex process that should involve careful consideration. Today, I want to guide you through a thought process that might be a bit uncomfortable because it involves money, which is often tied to our sense of worth and value.
Some people choose to raise their prices every year, which is fine, but are these increases aligned with inflation or simply based on feelings? If you're making pricing decisions based on emotions rather than strategy, you might not be setting yourself up for success. I’ve even created a class on this topic, the Pricing Structure and Strategy class, because there is both a structure and a strategy to consider when setting your prices.
One of the biggest mistakes I see is setting a price and then discounting it, which essentially takes profits out of your own pocket. So, when is it time to raise prices? It’s definitely a daunting decision, but there are clear signs to look for. For instance, are you or your business living paycheck to paycheck? Your business and personal bank accounts should be separate, and you should be doing draws or paying yourself a paycheck depending on how your business is set up. If your business is constantly running out of money, or if you're constantly worried about your card being declined, it's time to rethink your pricing structure. If you're working tirelessly but still living paycheck to paycheck, it indicates that your current rates aren't sufficient to cover your living expenses and business costs.
Another important factor is profit margins.
