5 Ways To Increase Your Salary Without Increasing Your Prices
If you’ve ever uttered the words “I wish I earned more”, then you’ll be used to hearing everyone’s automatic response...
“Oh, you should just put your prices up!”
That seems to be the standard response that people give whenever you mention cashflow, paying yourself more, or just having a little extra to invest in the business.
But, sometimes it’s just not practical to raise your prices.
And if the solution was that simple, you would have raised them already!
So, what can you do?
It’s not like you can wish on a star for more moolah or hope that a money tree will just sprout in your backyard!
Luckily, there are a number of ways that you can earn more without needing to increase your prices.
And today, I am going to share 5 of my favourite ways with you. Read on to find out what they are.
5 Ways To Earn More WITHOUT Increasing Your Prices
#1. REVIEW YOUR COSTS
I know, everyone tells you to cut down on your costs to make your money go further.
And you may even have undertaken a cost review exercise before. But, I want you to review your costs with this one thought in mind:
Every dollar you spend with someone else is one dollar less for you.
This will help you prioritise where you should actually be putting your money.
Investing in the RIGHT areas can help propel your business forward, and help you deliver more for less.
However, spending money on things you don't really need is just taking money out of your back pocket.
Making sure you're investing your money wisely is a great way of getting more money into your back pocket.
Go back through your bank statements and credit card bills to see what you are spending your money on.
#1. Are you still using that tool/resource?
#2. If you are, what does that investment enable you to achieve that you couldn't do without it?
#3. How much is that achievement worth in dollar terms?
#4. Are you making a good return on your investment?
If the investment is worth it, great, keep it!
If not, bin it and save your cash for something else (or better yet, yourself!)
#3 REVIEW YOUR SERVICES
We all like to provide value. But sometimes we chuck in all this extra 'stuff' to make something SEEM more valuable, but actually all it does is end up costing you more time.
Review how you tackle each project to see if you NEED to include all the aspects you currently throw in.
Are there aspects you can modify or change?
There may even be whole parts that you could cut out if they don’t deliver value to your clients.
Also explore if there are things you can automate or streamline - just because you have always done it one way doesn’t mean that it is the most efficient way!
Finally, are there tasks that you could outsource?
When you are exploring this option, you need to look at the cost effectiveness of outsourcing. Work out if you are able to outsource the task and still add a margin on top. If not, this will eat into the dollars you could be paying yourself.
Review a couple of your previous projects or the standard service you currently offer
#1 What activities add time and cost, but no real value?
#2 What activities can you streamline or automate?
#3 What activities could you outsource to a more cost effective resource while still adding a margin on top?
For more info check out 5 Steps To Creating Profitable Services More Of Your Clients Can Afford
#3. REVIEW YOUR TIME
Time is our most precious commodity - you only ever have a limited amount and you can't make more.
Finding the right balance between spending time on an activity that generates you money (usually known as working "in" your business) vs spending time helping your business to grow and develop (think working "on" your business) is really important.
While every person and every business is different, a rough guide for how to split your time is the 60/40 rule - 60% on revenue generating activity (aka "paying the bills"!) and 40% on business development (aka “working ON your biz”)
Consistently spending more than 60% of your time delivering client work can lead you to burning out.
It can also mean that your business growth stagnates as you aren’t dedicating enough time to nurturing your business. Eventually, you will find you reach a “glass ceiling” in your earnings that becomes difficult to punch through.
On the flipside, spending significantly less time on client work will mean that you aren’t bringing enough dollars into your business.
Striking the right balance will allow you to serve your clients well and still have the capacity to grow your business.
For one week keep a note about where you spend your time - including time spent on client work and time spent doing everything else for your business.
How much of my time is spent on activities that generate me money?
If only a small portion of your time is spent delivering paid client work then that is simply going to limit what you can earn.
What could you do differently to increase the amount of time you spend working on paid client work to generate more revenue?
NOTE: If you're spending large portions of time just delivering client work but still not generating enough revenue to pay yourself a decent salary, then you probably do have a pricing issue.
Grab my 5 Steps To Increase Your Salary (without increasing your prices!) resource to discover how much you are earning per hour and where you can make changes to increase your profitability.
One client I worked with discovered she was only spending about 45% of her time on billable client work. The next week she changed her priorities to focus on delivering her billable client work AND doubled her income in one week!
#4. REVIEW YOUR VALUE ADD
It’s always important to provide value for money for your clients - that’s how your reputation, credibility and referrals grow!