Welcome back to Season 2 of the Growth Engine with Ryan Parshall and Trice Alford. Owning an agency without real profit is called a hobby! You are not….
a “successful business owner”, you are not an “entrepreneur”. So what do you do?
Two key things control margin: Labor and Price!
So what do most agency owners do? They dive into managing their labor. They spend so much time in spreadsheets, time tracking, micro-managing labor and hammering on their own people.
Hmmmm? Understanding your labor and being efficient is important. But do you have more control over labor, time or price?
If you said PRICE…you are correct. If you want to make real margin, charge the right amount, which is usually much higher than you are thinking.
How long are you going to continue trying to figure all this out before you find out that you simply have to increase your pricing. In many cases, you need to increase 20% or higher.
For some of my clients, I ask them to double their pricing if they are under $100 per hour. Anything less means you do not value your services and expertise.
Listen to Episode 21 of The Growth Engine where we tackle the most difficult decision for agency owners…price increases. But it’s much easier than you are making it!
Learn more about Healthy Brands business coaching for agencies and small to mid-sized businesses.