Once you’ve established your recruitment agency and you can feel it beginning to grow, you might start to wonder whether you should increase your fees.
Perhaps you started out by offering a low rate to attract clients and now you’re wondering how to start bumping it up to a level you’re happy with.
Below we’ve explored how you can approach increasing your fees and when is the right time to take the plunge:
How do I increase my fees?
There are a few different ways that you can think about increasing your fees.
However effectively they all boil down to the same thing, you need to showcase your worth.
Give Your Reasons – You should be clear yourself on exactly why you deserve a fee increase. If you can’t explain it to yourself then it might be a struggle to explain it to clients.
Add New Clients – A simple way to start increasing your fees is by taking on new clients who will start paying your newly increased fee straightaway.
Renegotiate Your Offer – If you’re concerned that your client won’t be too happy about an increase, then you could consider renegotiating the service you provide. If you can demonstrate that they’ll be getting more for their money by providing additional services it could make the fee increase much easier.
Don’t Say Sorry – You should show your clients how grateful you are for their business, however you shouldn’t apologise for increasing your fees. You’re increasing them for a reason and you deserve it!
When do I increase my fees?
Choosing when to increase your fees is probably even harder than deciding how to go about it!
Offer a Grace Period – One of the worst things you can do is implement a fee increase without any warning. Give your clients notice so it allows them to get used to the idea and doesn’t come out of the blue.
Have a Proven Track Record – If you’ve only been working with a client for a few months then it’s unlikely that they’re going to happily accept a fee increase. Establish a proven track record of success before you consider upping your fees.
Present It as an Annual Increase – One way to increase your fees is to do it gradually by presenting it to your client as an annual increase. Though you won’t be able to raise your fees significantly it leaves the door open for future rises.
Test the Waters – Why not start with one client and see what the result is? You might be pleasantly surprised and it’ll give you the confidence to speak to your other clients.
Be Prepared to Walk Away – You have to be prepared that some clients simply won’t accept an increase. If there’s no room for negotiation then you have to be willing to part ways.
Good luck, you have the experience and you deserve that increase, go for it!