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In last month\u2019s 12\/60 program we looked at the nuts and bolts of taking the first formal steps of selecting a business entity and basics of branding. This month we were fortunate to have Dennis Spring<\/a> join us to talk about prevailing rates and how to set your own. Program Chair Aerial Ellis moderated the session and here are some questions from the IPA members that Dennis answered for us:<\/p>\n

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Q: What about an introductory rate?<\/p>\n

A: I\u2019m not a fan and never will be of introductory rate for anyone, IPAs or regular agencies. If you bring a certain expertise to the table, you need to be compensated fairly. To lower your rates is an option \u2013 anybody can do it but I caution \u2013 it\u2019s the same as full time people they may be earning $75K and they\u2019re no longer there, and they\u2019ll say to me \u2026..I was earning $100 but will take $75K \u2013 don\u2019t \u2013 that immediately locks you in perceptually into a certain level and once you\u2019re in there it\u2019s very difficult to get out of.<\/p>\n

Q: How do you determine when the time is right to raise your rates with a current client?\u00a0\u00a0 How does one raise rates with clients?<\/p>\n

A: If you are working with a client on an hourly or daily rates and the market rates for similar backgrounds in your geographic area \u2013 if you detect that those rates have risen you need to make an adjustment. If you have a retainer client with an agreed amount of time at a certain rate per hour or quarter and you first set these rates around certain parameters of what you\u2019d be doing. If those change it\u2019s time to raise your rates. Clients most often will question that, and you need to be ready to explain why you\u2019re raising your rates or project estimate.<\/p>\n

You can read the full transcript here<\/a>, and Tim O\u2019Brien, APR did a great write up about it in PRSA Tactics<\/a> as well! \u00a0(Image credits: Tactics\/harry briggs\/corbis)<\/p>\n

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