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Playing the long game…how to DOUBLE your income and protect your business

If you increased your prices by 5% how many of your customers do you think you’d lose?

None? One? Two? Half a dozen?

Not all of them I’m sure.

Next question, do you think you could replace these few customers with new ones who would pay 5% more?

I’ll assume the answer is yes.

So, what happens if you increase your prices by 5% every year? And every year you lose and then replace a few customers.

What effect will this slow and steady approach have on your business?

Here are the numbers…and they might surprise you

Remember, this is just a 5% price increase per year….

Year 1 – £20 per hour = £41,600

Year 2 – £21 per hour = £43,680

Year 3 – £22.05 per hour = £45,864

Year 4 – £23.15 per hour = £48,157

Year 5 – £24.31 per hour = £50,565

Year 6 – £25.52 per hour = £53,093

Year 7 – £26.80 per hour = £55,747

Year 8 – £28.14 per hour = £58,535

Year 9 – £29.55 per hour = £61,642

Year 10 – £31.02 per hour = £64,535

Year 15 – £39.60 per hour = £82,365 (Basically double where you started)

Year 20 – £50.54 per hour = £105,120

Year 25 – £64.50 per hour = £134,163

Think of it like this. Can you offer 5% more value to your customers every year? If you can, then you deserve to be paid 5% more.

Now, before you say these numbers are ludicrous. Think about it.

Are they really? In 25 years the going rate for a decorator could easily be £60+ per hour.

In 25 years, you might need to earn £134,163 a year.

To prove this…you only need to look at house prices:

Average house price in England 2020 = £256,000

Average house price in England 1995 (25 years ago) = £55,000


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