Why and How to Raise Your Solo PR Rates

That Solo Life, Episode 271: Why and How to Raise Your Solo PR Rates In this Episode

In this episode of That Solo Life  co-hosts Karen Swim, APR and Michelle Kane welcome back one of their favorite guests, Chip Griffin, from the Small Agency Growth Alliance. The episode centers around a crucial topic for PR professionals and marketers who work independently: raising rates.

We kick off the discussion by acknowledging a common challenge faced by solos and small agencies—undercharging for their services. Chip emphasizes that most professionals in this space undervalue their work and are often hesitant to ask for what they’re truly worth. He encourages listeners to consider raising their rates, asserting that the majority of solos are not charging enough.

The conversation then shifts to the mechanics of how to implement a rate increase without alienating existing clients. Chip shares that it’s essential to communicate any changes thoughtfully and to avoid abrupt or insignificant increases. Instead of small, incremental adjustments, he advocates for meaningful rate hikes that reflect the true value of the services provided.

Karen adds her insights, highlighting the importance of raising rates for new clients while also addressing the sensitive issue of existing clients. She suggests incorporating rate increases into year-end business reviews, where professionals can present a comprehensive look at past performance and future plans. This approach not only justifies the increase but also positions the professional as a strategic partner rather than just a vendor.

Throughout the episode, we discuss the importance of understanding one’s value and the need to think like a business owner rather than an employee. Chip points out that many solos treat their expenses like an employee would, failing to account for overhead and the true costs of doing business. He encourages listeners to adopt a value-based pricing model, which allows them to charge based on the expertise and results they deliver rather than just hourly rates.

As the conversation progresses, we touch on the significance of maintaining a healthy client mix and the necessity of ongoing business development. Chip reminds us that it’s vital to regularly assess our client relationships and to be proactive in seeking out higher-paying clients. He also warns against the pitfalls of complacency, urging listeners to avoid falling into autopilot mode with their client engagements.

In closing, we emphasize the importance of clear communication with clients regarding rate increases and the need to approach these discussions with confidence and strategy. Chip shares valuable resources available on his website, smallagencygrowth.com, encouraging listeners to seek help and not navigate their business challenges alone.

This episode is packed with actionable advice and insights that will inspire PR pros and marketers to evaluate their pricing strategies and take charge of their business growth. We hope you enjoy this enlightening conversation and feel empowered to raise your rates smartly and effectively!

About Chip Griffin

Chip Griffin is the Founder & CEO of Small Agency Growth Alliance (SAGA). He is a serial entrepreneur with a track record of building businesses that serve the PR and marketing community.

Chip helps small PR and marketing agency owners build businesses that they want to own. He works with them to grow profits, eliminate overwork, and improve their overall satisfaction.

As an experienced entrepreneur and agency owner himself, Chip shares the wisdom of his successes and the lessons from his failures. He understands the challenges and opportunities that face agency owners because he sat in the same chair and faced similar decisions. 

You can email Chip at chip@chipgriffin.com if you’d like to talk.

Episode Timeline

00:00:00 - Introduction to Raising Rates Join Michelle, Karen, and guest Chip Griffin as they introduce the topic of raising rates for PR pros and marketers.

00:01:00 - The Importance of Valuing Your Work Chip discusses how many solos and small agencies undervalue their services and the need to raise rates.

00:02:00 - Strategies for Raising Rates Exploration of effective ways to raise rates without alienating clients, including communication strategies.

00:03:30 - New Clients vs. Existing Clients Karen emphasizes the importance of charging new clients higher rates and the challenges of raising rates for current clients.

00:05:00 - Understanding Your Value Discussion on determining your worth and setting rates based on desired income and expenses.

00:06:30 - Stop Thinking Like an Employee Chip advises against treating rate increases like salary raises and encourages a business mindset.

00:08:00 - Avoiding Small Increments The pitfalls of small, incremental price increases and the importance of making meaningful adjustments.

00:09:30 - Value-Based Pricing The benefits of value-based pricing over hourly rates and the importance of tracking effective hourly rates.

00:11:00 - Annual Business Reviews Karen shares her approach to incorporating rate increases into year-end business reviews for clients.

00:13:30 - Strategic Planning for Price Increases The advantages of presenting a new plan and budget to clients when discussing rate increases.

00:15:00 - Communication is Key The importance of clear communication with clients regarding rate increases and avoiding surprises.

00:17:00 - Assessing Client Relationships Chip discusses the need to evaluate client relationships and the risks of raising rates on certain clients.

00:19:00 - Client Mix and Profitability The significance of maintaining a balanced client mix and focusing on profitability rather than just revenue.

00:21:00 - The Importance of Business Development Encouragement to continuously seek new clients and opportunities to ensure business growth.

00:23:00 - Final Thoughts on Rate Increases Chip and Karen summarize the key takeaways on raising rates and the mindset needed for successful business management.

00:25:00 - Resources and Closing Remarks Chip shares where to find more resources and advice, and the hosts express gratitude for his insights.

Resources:

• Best Practices for Raising Rates (Solo PR Pro)
• Agency Health Assessment (SAGA)

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Say Thanks to Chip Griffin!

If you liked this episode with Chip Griffin please say thanks on LinkedIn.

Listen to the episode on our website, Apple Podcasts, Spotify, Amazon Music, or on your favorite podcast platform. You can also watch the interview on YouTube here.