I'm curious for one, as to how often on average, most of you technicians or business owners, give yourself a raise not just in this rotten economy but, in good times. I was reading this article which I thought was quite interesting and thought I would post it here for you and hopefully, get some interesting, thoughtful positive or negative feed backs. Please let me know your thoughts on this.

Personally, I have not raised my rates in 3 years now but, plan on doing so this next year.

http://www.usatoday.com/money/smallbusiness/columnist/strauss/2009-12-20-resolutions-for-small-business_N.htm?csp=34&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+UsatodaycomMoney-TopStories+%28Money+-+Top+Stories%29&utm_content=My+Yahoo

hmmm, can't get it to copy paste correctly and am out of time, gotta get to work...I'll copy the post here for you to read instead.
Ask an Expert: Go ahead, resolve to give yourself a raise.


By Steve Strauss for USA TODAY
Q: Steve – What about you, what are your New Year's Resolutions in your business? – Bill

A: OK, I'll play, too.

I am in the business of creating and selling small business content. Traditionally, because of this column, that content has taken the form of written articles, tips and the like, (with some media and business speeches thrown in for good measure.). But increasingly this past year I felt like we were missing an opportunity to distribute this content using all of the new e-tools available, so next year we plan on creating content that will use video, podcats and of course more social media.

Over the past few weeks I have been asking small business owners I know, meet and hear from what they plan to do differently next year. Here are some of the best, most useful, answers I have heard:

Get bigger and better clients: With budgets continuing to be tight, not a few people told me that their goal was to find, not just new customers, but new customers who can pay: Businesses, commercial clients, etc.

It's a good plan for all of us. Now, maybe you are thinking that that would not work in your business. Let me suggest that you re-think things. Even a mini-mart whose customers are almost exclusively individual consumers could try and land some commercial accounts.

Why not you too? Target some businesses that need what you sell. Make a presentation and pitch them. Try some more. Think different. Get out there. When you throw enough stuff against the wall, eventually something is going to stick.

"Give myself a raise": One business owner told me, "I have kept my prices even for a few years, and even lowered some prices this year for a few customers. This year, as the economy hopefully improves I plan on raises prices a bit. Nothing dramatic, but enough so that we increase our bottom line."

"Spruce up your website": The folks over at the Intuit Small Business United blog smartly suggest that a great resolution for many a small business is to update that website. "Perhaps it's time for a redesign, or even just updating things like photos and customer testimonials, or adding a blog." And since two-thirds of consumers "turn to the internet first for information about local companies so not having a website [or a great website] could put you at a disadvantage."

Bust a move: 2009 saw many small businesses retrenching, waiting, holding back. While a smart strategy probably, it is also against our nature. There are new customers to be had and angles yet to be attacked. With everyone more than happy to say goodbye to 2009, there just may be pent up demand for something new, different, and better in 2010. Give it to them.

Master at least one online advertising/ marketing/ selling method: There are so many ways and places to make money online, and since it is a very affordable thing to try, it only makes sense to just do it already. Check out:

• Pay-per-click Google ads, or Yellow Pages local, CitySearch, Yahoo local, Facebook, etc.
• Placing ads on CraigsList
• Selling on eBay
• Getting more involved with LinkedIn, Facebook and/or Twitter.

Create a referral rewards program: "It is so simple, yet so effective. Some of my best business comes from referrals so I finally decided that next year I will create a consistent system for reminding current customers, and then rewarding them when they send me business."

"Pay myself first": "This is the year I do it – I will pay myself 10% of my net income in a savings account first."

Great ideas all.

And next week, look for Part 1 of my annual Top Trends in Small Business column.

Today's tip: Need help with your resolutions? Gaebler.com, a great resource for entrepreneurs, has a nice New Year's Resolution Generator.

Ask an Expert appears Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com.And you can click here to see previous columns. Steven D. Strauss is a lawyer, author and speaker who specializes in small business and entrepreneurship. His latest book is The Small Business Bible. You can sign up for his free newsletter, "Small Business Success Secrets!" at his website.

Jer,

Thanks for the thoughts there...interesting read.

Like you, we've been reluctant to raise rates this past year...I finally did about six months ago and we're busier than ever...this year will be one of our busiest, as it turns out...not bragging here, because we continue to knock on wood...but I firmly believe that the service-ethic we as tuners operate under FAR, FAR outweighs any minor pricing increases over the years...and, most of our customers are either in business themselves, or work in high end jobs...a small pricing increase won't surprise their business savvy.

I don't think piano tuners will suffer by notching up 2 or 3% per year...that's what we did (3%) this past year...

And, now I like myself, um...about 3% better!

YMMV

RPD

I like myself more about 3.5% over this way. Interesting read Jerry thanks for posting.

What I'd really like to do is raise the prices I charge my dealer for floor and warranty tunings. As it is, these barely cover the cost of travel expenses. But, I'm very happy to have the extra business that fills the gaps in my schedule, so I probably won't.

I remember once being told by a shopper "Gee, that's the cheapest price I've found.", but I still didn't get the job.

I promptly raised my price to $5 more than the most expensive tuner in town. I never regretted that decision.

Those that are shopping for the cheapest rate will always find someone cheaper. But those customers aren't particular about the quality of the tuning job, nor do they reward a skilled tuner with long term loyalty.

If you want to get rich, become a plumber.

When the economy here in Michigan was doing well, I raised my rates about 3.5 % per year to try and stay even with the basic cost of living/inflation as per the recommendation of my CPA. Currently our unemployment (actual figures not what the state tells us) is at 20.9 %.

It makes it much more difficult to increase prices when even the best technicians here are not raising their rates. I've always been the first to increase them and the others usually follow. Seeing as how things are, and have been, rotten here since around 2000 or so, I've been a bit more reluctant.

I can tell you one thing though. My health insurance rates have almost doubled in the past 4 years alone and I haven't even had any claims! How in the heck can they get away with that???!

I don't think any of us probably gets raises as often as we probably should,certainly not as often as we need. Do you agree? Or do you raise them yearly regardless?

How do you guys all know how much everyone else is charging? I don't really have a clue what other technicians in my area are charging. I'd have to call them and ask them and I sure don't want to do that.

Why not? If your worried about them seeing your number, purchase a pay as you go phone and use it for price shopping. Part of the RP course has you do exactly that, call around and find out how much techs are charging so you can establish your fee.

Happy Holidays
Les

That probably explains a few of the weird and creepy calls I've gotten over the years from people that didn't seem genuine. I would rather find honest ways of doing things.

We find it out from our customers too. It's not that difficult when someone calls asking what you charge and then say so and so charges X amount. It's not illegal to ask fellow technicians what they charge either.

I would think sharing costs would be a good thing.

While discovering what "the competition" charges is appropriate, sharing that information with other tradesmen is NOT. Antitrust legislation (for the purpose of preventing/punishing price fixing) applies to the trades as well as multibillion dollar corporations.

"I don't think any of us probably gets raises as often as we probably should, certainly not as often as we need. Do you agree? Or do you raise them yearly regardless?" Jerry Groot

I've been a little hesitant to raise fees particularly with an eye to the economy, but it's getting to be that time. Actually, it's long past time. 10% raise here we come!

I really like it when I'm good to myself like that.

There is not much relation between what I charge and how much money I make, as I make most of my money from investments. However, I do feel that I need to charge more when my costs go up, and when I feel that the price does not reflect the proper respect for the work that I do. So my price has been going up the past few years, and will go up again on the first.

When I started, my price for a tuning was about as much as my monthly health insurance premium. Now my health insurance is over $550 a month (per person).

A sure sign for me to know when to raise my fees is when I get 2 or 3 people in the same week say, "I don't think you've charged me enough." It happened this week...so up they go!

I agree that with friends and colleagues it can be OK.

I just don't like the idea of someone calling and pretending that they are someone that needs a tuning. They take up your time and trick you into telling them what you charge for everything just so that they can beat you by a few dollars. I've heard that some tuners use their wives to do this.

I do hear from the occasional caller what someones else charged them before but I don't think it's accurate most of the time.

Usually I get the info. by mutually sharing with another tuner colleague or seeing an advertisement.

I see the gas stations follow these guidelines very appropriately and accurately don't you? NOT. Here, they are almost always exactly the same price. If not, most certainly within one or two pennies of one another. It's strange how one gas station changes it's pricing, within 24 hours, the rest follow suit. It's maddening.

Sharing costs is a good thing. Price fixing is not. I charge what I charge but, I do find it interesting to see what someone else charges for something too.

No price increase for me this year. I did it last year, but I think I'll wait a bit until I do it again. In light of the fact that I'm one of the few people I know who made more money this year than last, I wouldn't feel quite right raising my rates at the moment. Many of my clients have been laid off or their salaries have been cut. I'm fortunate that my wife's employer provides us with good health benefits.

When you’re starting off in the business, there's only one way to find out what the "going rate" is. Your colleagues are limited along with resources and joining PTG is a serious drain. To just throw out an arbitrary price, advertise piano tunings in Craigslist for $65 and your fellow colleagues mention in converstion as ....you know "that guy".

Sorry if you’re put off by price shoppers...I understand its part of the business, not just ours, but any business.

You can also just Google "price of piano tunings" in Houston Texas or wherever and get a pretty good idea.
Or go ahead and call a tuner but tell him/her what you're doing. You can call a piano dealership and ask them.
Yeah that's it, bug them instead! They don't have anything better to do.

Here is some more food for thought regarding how much you should give yourself a raise this next year.

http://www.marketwatch.com/story/pay-rai...wc0mZnxchAzB7-A

Note this: "At the companies who said they are making changes or considering them, the average salary increase for employees of all types will drop below 3% for the first time since Hewitt started its salary tracking survey in 1976. At those companies, salary hikes will average 2.2% for executives, 2.5% for salaried exempt (those who are exempt from overtime pay), 2.6% for salaried nonexempt workers, and about 2.5% for nonunion hourly employees.

At companies who said they are not making changes, raises will average 3.8% for executives, 3.7% for salaried exempt and nonexempt workers and 3.6% for nonunion hourly employees."

After reading the article, I'd say it is fair to give myself about a 3 % pay increase per year on average. Especially considering the fact that most of these workers get benefits that none of us receives unless we are lucky enough to have spouses working elsewhere that receive benefit packages which most of us do not.

Well, I did it. I decided to raise my rates by $10 as of January 1st. So far, I've been asked 3 or 4 times what I charge by my regular customers and a few times by newly recommended customers. Not one of them blinked an eye or even coughed when I told them my new price. I did have to laugh at one lady though. I don't know, I guess it's how she said it that just cracked me up. I couldn't help it. In fact, when I started laughing, so did she. I last tuned her piano in 2001. She asked if I still charged the same price? As I was laughing, I was trying to say, Noooooo and eventually did manage to choke it out.

Patrick,

I hear you, but I seriously doubt if any of us are in violation of anti trust legislation by simply sharing our fees. A good test for legality is whether we are asked to refrain from normal interaction. I had a lawyer tell me once, in this very regard, that "all people have contact with all people, all the time". There would, of course, be something wrong with fixing pricing...Your point is well taken though, as far as calling around to establish a fixed price...I'd be a bit discreet with that, but there again, its a fact that can be obtained through normal channels. There's nothing wrong with researching the competition.

No different than discussing security measures at a bank. As long, that is, as you don't use the information to actually ROB the place!

Jerry: We raised our fees for tuning this year a bit (now at $295.00...just kidding guys!) but the biggest raise we added in was for rebuilding...our costs have just gone up through the roof, so we're pushing our fees up. Response so far? No problem booking work...I think it was Dave Ramsey who said that small businesses should raise their rates 10% per year, every year until the volume of business begins to drop noticeably....

I'm too much of a wuss for that, but the point is interesting none-the-less!

I'll probably push it up a bit after my purchase of my new SAT IV in a few months...but it'll be ok because I'll look so darn stylish around here!

BTW, Happy New Year to all you...without you guys (all) I'd be a poorer person. Thanks for all the great conversation in 2009!

RPD

I had slipped a little behind in reasonable rate hikes for the past couple of years, so the $10 raise effective Jan. 1st was a bit steep in my mind, but (like Jerry's post) not one booking has made the slightest negative peep, and one guy said, "About time, Mr!"

As the real value of the dollar fluctuates (usually downward, but not at the same rate every year), customers expect adjustments--- no one expects businesses to operate at a loss. If the adjustments are modest and appropriate, we appreciate it. We want you to do well.

If the care our instruments receive is skilled and conscientious, we appreciate that, too (I do, anyway), because it's of real value. Unfortunately, it's not the story with every vendor, so when you have the good luck to find a good one the adjustments to the rate for service kind of fade in importance.

On the other hand, a state parks association I've supported for years tripled their membership rate this year, in the very deepest time of the recession. Too much, and at a bad time, but maybe they'll clear enough extra that they won't miss me.

For me, I can point to the annual Theme Park ticket increases as justification to any rate hikes. The parks raise their rates because their costs go up. If their costs go up, I can assume my costs increase as well. Of course, I can print a quicken report in a few seconds that will tell me anything I don't already know...

Ah ! the last one !

Best New year !

I'll be raising my rates this year also. Some of my old customers I will keep charging the same. All new customers will be paying an extra $10 per tuning.

'Hope that works out for you. It gets a little dicey if customers happen to compare notes and wonder why they are paying more for the same service.

Daryl,

That's how we do it too...we start by raising our rates for new clients (under the realistic theory that their pianos are unknown, may take longer first trip out etc) and my repeat customers (who stay scheduled regularily) get that new price increase around a year later. It rewards loyal clientel by keeping costs lower, plus those pianos are up to date "with their shots" so to speak. (David, your point is well taken...but we're up front with clients about how we price...and once they're repeat clients they too will enjoy the slower uptick in pricing-no problems to date with anybody on this, and I know they DO compare notes LOL)

Eventually, all clients end up at the same pricing, and when we need to raise again, we do so with new customers when they call. Doing this provides an immediate test as to our new rates, i.e. will new clients say "yes". So far, as mentioned by others above, nobody balks at all.

Another thing we've noticed. Those who do complain (rare) about price are almost NEVER clients who 1. have a priority on the condition of their instrument and 2. will schedule regularily. Those who want it "just tuned, those broken hammers in the top section are almost never played anyway" are the same folks who call two days before New Year's eve, hoping for a miracle. We refer them to somebody else usually, if they lead with the "just tune" statement. There nothing I "like" more then a high profile party with movers and shakers in our city, where the piano will be awful because there is no budget, and nobody took the time to call in advance...the exposure is just not worth it IMHO. We're no longer available for those gigs...and I like life better (about 4% better, now LOL)

Dan, thanks for the offer...we're overdue for a trip up your direction...I wish we could fly right now...instead, I'm under a reproducer this week! Someday, though!

:)RPD