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11632Re: [infoguys-list] Re: Los Angeles, CA

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  • Bob Hrodey
    Dec 2, 2007
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      Vicki Siedow wrote:
      > I have raised my prices a couple of times in the last
      > couple of years, and each time business has increased.

      That is one of the true mysteries of this business that I learned quite
      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.

      Truly strange.

      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!


      --

      Enjoy,

      Bob
      ________________________________________________________________
      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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