how to know when it's time to raise rates in your service based business
"Create rates that better align with you and your value"
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Are you feeling like you’re working way too hard for way too little? You’re not alone—and chances are, the issue isn’t just your pricing. It’s how you view your value.
We’re diving into the real reason many service-based business owners stay stuck at the same income level: undercharging. You’ll learn how to recognize when it’s time to raise your rates, how underpricing leads to burnout, and actionable steps to confidently update your pricing structure.
You’re Burned Out & Overbooked But Still Not Profitable
If you’re working nonstop, attending back-to-back client calls, and still struggling to pay yourself, it’s likely your prices aren’t reflecting the value you deliver. Burnout often stems from this imbalance—especially during early growth phases.
TIP: Charge based on value rather than hourly.
You’re Attracting the Wrong Clients
Low pricing often attracts low-commitment clients. If you’re facing pushback during sales conversations, chasing down invoices, or working with people who don’t respect your time, it may be time to reevaluate how your pricing is positioning you.
TIP: Find clients that are more aligned with the services that you want to provide. You will learn how to clearly identify how to service those ideal clients and attract similar people.
Your Prices Have Been the Same for Too Long
Employees get annual cost-of-living raises—so should you. Think about the skills, experience, and results you’ve gained in the past year. If your pricing hasn’t evolved with you, you’re undercutting your worth.
TIP: Raise your rates so they are reflective of the current services you provide.
BONUS TIP: For current clients, share the overall value that you can give to ease the conversation of increases.
How to Raise Your Rates Strategically
Audit your current pricing: Review your rates, the time you’re spending, and how that aligns with your expertise.
Assess your value: Your knowledge, experience, and client results are assets—make sure your pricing reflects that.
Prepare for pushback: Some clients may walk away, and that’s okay. Losing low-alignment clients can make room for better ones.
Communicate clearly: Share the added value you bring and give clients notice. If a large increase is needed, be able to back it up.
Implement in phases: You don’t have to raise all your prices overnight. Choose a model that fits your comfort and your client base.
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Hey, I'm Lexi!
Small town mom, wife, and biz enthusiast! When I’m not nerding out over small business financials or recording my podcast, you can find me in the passenger seat of our Jeep or talking entrepreneurship over a cup of coffee.
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