Is it ethical to raise my prices after less than six months in business?
I started my online sermon transcription business five months ago. I was expecting to do all the transcription myself. As it turns out, I'm so busy I can't handle all the work myself and need to subcontract much of the work out. My price is $1.25 per audio minute. My biggest competitor charges $2.00 per audio minute. I need to pay 75 cents per audio minute to the subcontractors. If I raised my price 75 cents, I would be set. I just don't want to come across as sneaky or unfair to my clients
Yes, it is. When you are first in business, you may not know the prices you need to charge to cover your costs and overheads. Now you know, and you can adjust accordingly.
Raise your prices on your highest-end items first versus doing something across the board. As your customers get used to the higher prices, you can adjust prices gradually on your different products across the board.
Also remember there is nothing sneaky or unfair about making a profit; without it you simply will not survive and your customers will lose out on what they obviously perceive to be a valuable service.
Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.