Is Your Hourly Rate Enough?
Do you feel like you are NOT earning enough for all the hard work you do in your small business? Are your earning requirements fair and reasonable?
If you answered yes to both questions, then maybe you need to put your prices up!
Many small businesses charge too little for the products or services they provide. This leaves them with a business that operates on small margins and, often, earning less from all their hard work than they would earn in a job!
Sometimes it is difficult to work out what your business’ charge-out rate should be.
To help in this situation, you can use the Hourly Rate Calculator - a useful little tool to help you work out an hourly charge-out rate for your business.
This tool is also useful if you are facing competitive pressures. It gives you an opportunity to analyse your costs for efficiencies, as well as understand any competitive advantage you may have (to help you better explain why you charge more than your competitors).
The Hourly Rate Calculator (and instructions on how to use it) can be downloaded from the Small Fish website here. Of course, if you get stuck, give us a call.
Kristian Reiss
Small Fish Business Coaching Perth
www.smallfish.com.au
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