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The Raise Rates or Not

April 23, 2014

Business advice for women entrepreneurs

raisingrates

The news buzzed this week about Netflix’s plan to increase subscription prices for new customers while keeping old subscribers at current rates for a limited period of time. The company said the reason for the increase was the need for funding to expand and conduct more original content. The news also highlighted the fact Netflix’s first-quarter earnings were already very strong.

To increase rates or not is the question for many women entrepreneurs. Known for being nervous in raising prices at the expense of losing customers, women business owners tend to maintain standard pricing too long thus decreasing their opportunity for growth. It is interesting Netflix is raising rates when it’s already successful; not when it’s desperate for revenue. Women entrepreneurs should glean wisdom from this company and consider making economic moves for their business at the right time.

The other interesting fact about Netflix is how the owner of the company is not worried about competition because he believes the more players in the market, the faster the transformation within their industry leading them all to success sooner. Netflix is proud to be leading the way not only for themselves but for other companies.

Today’s blog post should inspire you to ponder two business issues. How long has it been since you raised your rates? If it’s been more than three years, it may be time to look at your business plan, your position and value in the market, and your company’s growth potential and make a decision to increase them. The second issue you should investigate is how many competitors have entered your marketplace in the past two years? How does their entrance affect your business? What should you do to embrace or work with other competitors to enhance the entire industry? By creating a stronger marketplace you also affect demand for your services and more justification for increased rates.

Once in awhile as entrepreneurs we must make strong financial moves that help our business remain vibrant and poised for growth. Take a look at our success strategies today to gain more advice on making the move to raise your rates.

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