11632Re: [infoguys-list] Re: Los Angeles, CA
- Dec 2, 2007Vicki Siedow wrote:
> I have raised my prices a couple of times in the lastThat is one of the true mysteries of this business that I learned quite
> couple of years, and each time business has increased.
early on. Like anyone else I was hesitant to bump my prices up when I
was first getting started. I did so reluctantly, fully expecting an
exodus - mass or otherwise - to occur. Business actually increased.
Figured it was a fluke and bumped the rate by 20% the next time
literally hoping to drive away some of the marginal clients who were
penny pinchers and always seemed to expect 8 hours of work for 5 hours
of pay. Didn't happen then either and so far as I can tell has never
happened in my experience. Higher hourly rate (within reason, of
course) brings in more business.
Another brief story in re: low pay to subs that might strike a nerve
with some others here but, nonetheless, it's something to think about.
A long while back and for quite some time there were two investigative
firms in my area. Me and the other guy. The other guy had been doing
it for about 5-7 years before I started out. Like me, he also worked
for the sheriff's police and was doing it (back then) part-time. He had
a good load of clients as did I. He was getting time starved (I'm sure
many of you have that problem from time to time, if not more
frequently. It's where you have enough work to keep you busy 20 hours a
day but you don't want to work that much... or have to.)
At this point he asked me if I could give him a hand with some cases as
he was severely overloaded. I didn't have a lot of time but he was a
friend and I said I'd help him out if I could. He asked me how much I
was charging. At that time, about 22 years ago, I think I was getting
about $35-$40 hour. He said that he couldn't possibly pay that much as
he was only billing $22/hr. I told him that there was no way that I'd
sub for him for anything less than $32. He bitched and moaned and then
said he'd pay me $30 and no more. I told him that I wouldn't do it even
if he paid me $40/hr. He asked why not. My response was that if he's
billing $22 and paying me $30, $32 or, even $40 an hour, he'd have to
pad the bill to make any money since he refused to raise his rates for
fear of losing clients. That meant that no matter how great my work
product was, HIS clients would be looking at the reports and thinking
"Nice work but why the hell did it take Hrodey 4 hours to do a 1½hr job.
He simply could not believe (perhaps, RECOGNIZE is the better word) that
if he doubled his price from $22. to, say, $40 or $45 an hour, that even
if he lost 50% of his clients, he'd still make the same money in half
the time. Knowing what I was charging should have also told him that
his erstwhile clients (if any) weren't going to rush to my door in an
effort to get a better rate.
Realize your worth and work to live - don't live to work!
Hrodey & Associates Established 1977
Post Office Box 366 Member of NALI, ASIS, FBINAA, NAPPS
Woodstock, IL 60098-0366 NCISS, Assoc Det of IL & P.A.W.L.I.
Licensed in IL & WI (815) 337-4636 Voice 337-4638 Fax
email: inquiry@... or rth@...
Illinois License 115-000783 Wisconsin 8045-063
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