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How To Raise Your Rates

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How To Raise Your Rates

Women take home lower pay as employees--on average, 77 cents for each $1 a man earns. But self-employed women are underpaying themselves too, by under-charging. Here, seven tips to raise your rates.

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Find out what others are charging.

Consult colleagues, clients and suppliers to determine how much people are willing to pay and are currently paying for a service similar to yours.

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Charge what the market will bear--and then some.

Divorce consultant Nancy Fagan got a nasty feeling when she asked her male colleagues in the business how much they were charging. Then she hiked her fees to exceed that of her peers. The bad feeling disappeared.

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Your clients think they get what they pay for.

Clients are willing to pay for things they value, says small business consultant Ainslie Waldron. Think about it like this: If you pay a lot for a dress at a high-end boutique, you will treasure and care for it. If you get a bargain from a low-end store, you will likely think much less of the garment, even if the design and fabric are similar.

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Act like you're worth it because you are.

"You can't raise your rates willy-nilly. You have to be able to back it up," says Maggie Jessup. Strong referrals, quality service and a powerful brand all command premium fees.

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Don't make excuses.

"I've watched men. They do not make excuses," says Fagan. "When I feel that excuse-making instinct come on, I think, 'How would a man handle it?' They would not feel the need to explain themselves."

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Analyze yourself.

Find the root of your fee hang-ups. Fagan has five brothers, all of whom received gifts of property from their father. For her? He said her husband would eventually buy her real estate. Fagan was able to raise her fees to competitive rates once she fought the stereotype that equates gender to financial potential.

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Give value-ads but don't hurt your bottom line.

Financial planner Kristin Harad offers waffling clients free access to teleseminars or a quick portfolio review. "These have a high perceived value, but do not take me a lot of time," she says.

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