#316 // Why You Should Raise Your Rates On July 1 (Part 2) 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 7 key items that will help you in your decision. Good / Excellent Relationships With Clients Is The Key Can you have hard conversations with your clients? Can you talk money with your clients? If you can’t, how strong is the relationship? Life, and business, is all about building relationships A good relationship is built on mutual respect, trust, transparency etc Don’t be scared to fill them in on what’s going on Avoid The Generic Email, Go And See PeopleOr at worst case call them Imagine if someone is having a bad day, or your relationship is already on the rocks, and they get an email about your price rises Delivering the news in person you can gauge their emotions + also communicate effectively Definitely for all your major clients, everyone else can be just told along the way A generic email to 1000 clients should be absolute worst case scenario. Think Of What This Actually Means For Your Clients A GPO might go up $10-$15+A 4 hour job might go up $40+ It’s honestly not that big of a deal Think Of What This Actually Means For Your Business Charging an additional $5 per person per hour = $40 per day = $200 per week = $10k per year Do this across 5 staff members that’s $50k straight to the bottom line Do this across 10 staff members that’s $100k straight to the bottom line Do this across 20 staff members that’s $200k straight to the bottom line Establish A Yearly Rhythm For Your Clients, Staff + Yourself Every year, your price will need to go up 3-5%Every year, your staff wages will need to go up 3-5%Every year, your wage will go up 3-5% in line with market value For the first year, this will feel uncomfortable. After 5 years, it will feel normal Don’t Overthink ItIt’s not something you have a say in, it’s company policy If you were the CEO, you would need to do this But Honestly, Sometimes OverThink It If you are making $2m a year and yo are genuinely worried, back your gut + put it on pause It’s time for you to get after your trade god ordained destiny of making money, building wealth + being kind. Much love,Crowe xSummaryIn this episode, Greg Crowe discusses the importance of strategic rate increases, building strong client relationships, and maintaining business profitability through disciplined daily practices and annual planning. Learn practical tips to raise your rates effectively while preserving trust and long-term success.Keywordsbusiness growth, rate increase, client relationships, profitability, daily discipline, annual planning, business strategyKey TopicsTiming of rate increases (July 1, January 1)Four key financial metrics: gross profit, gross profit per hour, net profit, net profit per hourImportance of daily discipline in checking job profitabilityBuilding strong, honest client relationshipsEffective communication when raising ratesAnnual rhythm for rate adjustments and cost increasesAvoiding generic communication, personal engagementLong-term mindset for business and client relationshipsTitlesThe Best Time to Raise Your Rates and How to Do ItMastering Client Relationships for Business Success sound bites"There's no better time than July 1 to raise your rates""Check every job for gross profit and net profit""Build relationships based on trust and transparency"Chapters00:00 The Importance of Raising Rates05:12 Building Strong Client Relationships10:02 Effective Communication Strategies15:03 Understanding the Financial Impact17:52 Final Thoughts on Rate Increases