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It’s almost the end of the year. Now is a time to think about writer rate increases. Here’s why the New Year is a good time for it.
You need to raise your rates regularly. I only do it once per year, and I’ll tend to do it at different times of the year for different clients. I try to do it on their year anniversary. However, there are some that I’ll do at the New Year due to how long it’s been between rate increases.
Inflation is a major problem right now. It’s all the news seems to talk about, but it shows why the rate you charged last year is causing you to lose money if you don’t increase your rates now.
What makes the new year a good time for writer rate increases? Surely just after Christmas is a bad time for it. Here’s why I do it this time of year if it’s been more than a year for a client.
It’s time for a fresh start
The start of a year is often viewed as the time for a fresh start. People make all sorts of personal resolutions, so why not make business ones too? After all, the end of the year is when people consider their goals for the next year and what they want to achieve. They look back over their year and see what they need to change.
Of course, writer rate increases always come into the new plan. It makes sense to bring them in as soon as possible.
While this is great, you do need to remember to give some notice to your current clients. Otherwise, they are likely to walk, and you could break contracts.
People expect writer rate increases
The new year brings price hikes everywhere. Clients will expect them from you at this time of the year. Think about the trains, plane fares, and those businesses around you.
Yes, there are sales here and there, but they are usually “end-of-year sales” and will be on old stock. When it comes to new stock, there will be higher prices. It makes sense to bring in your writer rate increases at a time that people expect it.
This is also an argument against price hikes this time of year. Everyone else is doing it, so why not break the mold and opt for your increase at another time of the year?
It’s easier for you to remember
When did you last put your prices up?
That could be a question that your prospective clients ask. I know I’ve been asked it in the past. People want to know the chances of prices increasing in the near future. By setting the date for the new year, it is easier to remember. It’s also a time that people expect it and can plan for the next year.
This also makes it easier to set your notice period for prices going up next year. You can do your end-of-year review towards the end of November to give your clients plenty of notice before January 1.
It encourages people to purchase earlier
December is a slow month for many people. Commerce businesses will have a lot happening, while others are struggling financially so they won’t want to order a lot of marketing. They want to go into the new year with a bang.
This causes problems for you. It means your December can be poor financially, and you want money to spend on your family. You can counter that with the promise of lower prices at the hardest time of year. Encourage your clients to order before the end of the year because they will have to pay higher prices from January 1. Wouldn’t you purchase sooner to save some money?
This can also work if you find a different time of the year is difficult financially. Set an increase for just after that time period so people get that FOMO (fear of missing out) feeling. They’ll buy during your slower time period and help you out financially. You’ll just need to remember there may be a slight lull when it comes to the initial month of your writer rate increase.
When have you found is a good time of year for a rate increase? When did you last increase your writer rates? Share in the comments below.
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