RateMate allows you to select your hourly rate based on knowledge – of your overhead expenses, desired income, tax situation and personal needs. Once you are charging this way, you will have the confidence of knowing that you are charging the proper amount for your services, and that you are making a fair profit every time you set to work on a new project.
Neglecting profitability, and undercharging for work, hurts us, hurts the industry, and hurts our futures. Being in business for ourselves gives us the opportunity to retire early, and were throwing it away when we undercharge. Every time we undersell our work, we are incrementally giving away our retirement, our health care, our vacations, and our futures.
If I didn’t give myself downtime, I wouldn’t have anything truly valuable to offer, and I’d just be spinning my wheels. Kind of like when I make a conscious decision to go to bed and tackle a problem in the morning, because I know if I do it late at night it will take an hour, and if I do it in the morning it will take 10 minutes.
In a recession, you need to make smart money decisions. Dropping prices is one of the worst choices you can make. It’s so, so tempting in this economy to price low in order to get what little work is going around. It’s also the fast track to bankruptcy. First of all, let me say that [...]
Note: This article is written from the sign shop perspective, but is applicably to any small business where time and materials are the bottom line. The wrong hourly rate (or “shop rate”) can be like a hidden cancer for your business. How do I know? Because I almost killed my sign business this way in [...]