Adjusting Service Rates with Cost of Living Considerations

One effective method to increase service rates is by incorporating cost-of-living adjustments (COLAs). This practice is common in the tech sector, where companies adjust salaries based on inflation trends.

Consider this: if the cost of a key ingredient rises, you should reflect that increase in your pricing. For instance, if the price of sugar for your drinks doubles, it's only reasonable to adjust your selling price accordingly.

As a copywriter operating as a side-hustler, I find it challenging to raise rates mid-project. To navigate this, I include COLA clauses in my client contracts, explaining that my pricing will adjust with inflation. Additionally, I outline expenses eligible for reimbursement, such as hiring external vendors or collaborating with designers, ensuring clients understand the necessity of these costs.

This approach allows me to manage project complexities while justifying my rates, effectively passing on inflationary pressures.

Innovating Within Your Pricing Structure

As a new side-hustler, you may lack the leverage to raise your rates significantly. However, you can still enhance your actual income by creatively managing your time commitments.

Real income, which reflects an individual's purchasing power after adjusting for inflation, can be boosted without raising your service rates by modifying how you allocate your time. For example, I have reduced the number of complimentary revisions and client communication sessions in my copywriting projects. By streamlining my payment milestones, I can collect fees upfront and upon completion, rather than at multiple points during the project.

This time-saving strategy enables me to pursue new clients while minimizing the risk of losing existing ones due to price increases. Ultimately, reclaiming time equates to reclaiming potential income.

Bundling Services for Increased Value

In the words of Grant Cardone, if you only have a single service to offer, your chances of making a sale dwindle. To combat this, I recommend packaging your services together. Instead of solely offering copywriting by the word or page, consider bundling project management, vendor coordination, and digital marketing consulting into one comprehensive package.

By doing this, I can charge a premium of 30-50% more than my standard copywriting rates. Premium clients, who have higher expectations, often require less time and effort in terms of revisions, enabling me to focus on delivering quality work without compromising my income.