Once you clear the hurdle of setting the rate for your business-to-business services, the challenge you will surely encounter is raising your rates. Perhaps you’re shifting to serving a different market; or you haven’t changed your rates in a while and inflation has caught up with you; or you’ve learned a new skill. Whatever the reason, the time will come to raise your rates. How to go about it? How to communicate it to those that need to know?
I recently came across a great case in communicating a rate increase: Waterknot Graphic Design, Josh Nusbaum’s graphic design and illustration studio here in Portland, Oregon. While I’m not at liberty to disclose Josh’s new price, the rate itself is irrelevant. Not only does Josh bid per project, of which his hourly rate is only one factor, he figured out a way to simultaneously share the news, put it into perspective, and demonstrate his core competency, all with a healthy dose of humor.
Josh created a 12-page booklet entitled $X Business Essentials: The Helpful Cost Comparison Reference for Smart Business Planning ($X being the new rate). Each page gives an example of what the new rate, expressed in dollar terms, can buy for your business: 20 lattes, 9 staplers, 14% of a designer business suit, 1/4 of a fancy smart phone, 10% of an ergonomic desk chair, 8% of a business class plane ticket, 1/20 of a solid wood executive desk, or 3% of a super-fast laptop. Each count or percentage is translated into a visual representation.
The final page equates the amount to “1 hour of premium quality graphic design”, and adds:
Nothing stays the same. Everything changes. Fortunately, some things get better with age – like Waterknot. More years means more experience, greater expertise, and enhanced creative excellence, which equates to a better design value for you. (…)
Sure, you could spend less on coffee and staplers, but they can’t really tell your brand’s story or increase your sales – Waterknot Graphic Design can and will. (…)
As always, thank you so much for your continued support. I couldn’t do it without you. — Josh
As most graphic designers, Josh doesn’t publicize his hourly rate. Rightly so, he aims to compete on the quality of his work, not his price. That consideration went into the distribution of the booklet: he shared it with the Bridges green business networking group, where he is a member, and mailed it to his past and current clients.
The recipients are likely to already know the quality and benefits of Josh’s work already. The brochure reinforces the Waterknot brand experience with a nice touch of customer service.
Whether you’re a graphic designer or other business-to-business service provider, find a way to communicate your rate increase gently, assertively, and lightheartedly, while highlighting what you do best.
Care to share examples of communicating rate increases from your experience?
