#315 // Why You Should Raise Your Rates On July 1 (Part 1) with Greg Crowe

July 1 is coming up, and there really is no better time to consider a rise in rates + margins.

Today we discuss the pros and cons of considering increases.

Why you should raise your rates… Make money. Build wealth. Be kind. It all starts with making money You deserve a market wage + super + a business net profit of 20-35% You’re currently oncosting yourself as 1 full time position but really you are doing 2 positions (ie 30-40 hours of “volunteer” admin work at night time). If you paid someone to do this, your overhead per hour would increase and you would either be losing money or making less money If you don’t raise your prices, every hour is costing you more and out of every dollar you are keeping less. The price of everything has gone up (subscriptions, petrol, staff, super, interest etc) A $45 to $50 wage increase for your key tradie has just cost you $10k

Why you shouldn’t raise your rates… You feel dirty like you’re ripping someone off You fear success / failure / making money You are uncomfortable having hard conversations You fear the unknown // what happens if someone pushes back? What happens if you lose clients? Is it worth it? If you’re currently charging too low, you might not be able to get there in one go Your overheads are too high and it’s messing with your break evens You genuinely want to absorb this one to keep + build client relationships You are on top of this and are continually raising your rates

It’s time for you to get after your trade god ordained destiny of making money, building wealth + being kind.

Much love, Crowe x

Summary

In this episode, Greg Crowe discusses the importance of raising rates at strategic times, especially July 1, to ensure business profitability and sustainability. He shares practical insights on how to approach rate increases, understand your numbers, and build a profitable, long-term business.

Keywords

business rates, profitability, financial planning, business growth, pricing strategy, July 1 rate increase, business tips, financial year, profit margins

Key Topics

Best times to raise business rates (July 1, January 1) Understanding your break-even rate and profit margins The importance of knowing your numbers and costs Overcoming the fear of raising prices Building a profitable and sustainable business The impact of overheads and non-billable expenses Market normalcy and pricing ethics Self-development through business challenges

Titles

Why July 1 is the Best Time to Raise Your Business Rates Master Your Business Finances: When and How to Increase Prices

Sound bites

"Most of you are on costing volunteer administration work" "Every hour is costing you more money" "Stop glamorizing the struggle, speak positively about your business"

Chapters

00:00 Introduction to Rate Increases 01:24 The Importance of Timing for Rate Increases 02:20 Understanding the Need to Raise Rates 05:04 The Financial Reality of Running a Business 08:48 Defining Your Role and Responsibilities 10:58 Market Wage and Profit Margins 12:25 The Cost of Volunteer Administration Work 14:11 The Consequences of Not Raising Rates 16:03 Reasons Against Raising Rates 20:41 Evaluating Overheads and Break-Even Rates 23:03 Market Realities and Client Expectations 25:31 Building Client Relationships vs. Profitability 26:28 Conclusion and Next Steps