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Raising Your Rates – Why, When, & How

Raising your ratesIn our consulting work we’ve noticed dog pros share a nearly universal fear of raising rates. If you’ve put a rate increase off, worried your clients will leave you in a mass exodus, this article is for you.

Why Raise Your Rates?

To make a living. Our job at dogbiz is to help people make a living doing what they love. Too often we see new clients whose rates will never provide that living. Many factors go into setting rates. One critical factor that’s generally overlooked is what the dog pro actually needs to live on. If you don’t set your business up to make what you need, you’re not likely to stay in business.

To get the right clients. You may think keeping your rates low will make it easier to get clients, but the exact opposite is true. Low rates will only attract bargain hunters, and they rarely make long term, loyal clients. The clients you really want—the ones who are serious about their dogs and have money to spend on them—are looking for the best dog daycare, walker, or trainer, not the cheapest. If your rates are low, they’ll assume you’re not top notch and look elsewhere.

Because you’re worth it. You have to believe this. Confidence breeds confidence. Setting a strong rate and standing firm behind it can help convince prospective clients you’re the one for them. And besides that, you are worth it. You aren’t selling cheap plastic items or hawking knives door-to-door. The services you provide to dogs and their people improve the quality of life for both.

When To Raise Your Rates?

When the numbers don’t add up. If you’ve avoided doing the math, it’s time to take a deep breath and grab a calculator. What do you need to live on? What is your business making? What is your business’ potential? You can keep the math simple:

  1. Start by figuring out how many dogs you can serve per week. (How many dogs will fit in your daycare? How many private training sessions or classes can you comfortably and sustainably fit into your schedule? How many pet sits can you manage?) Multiply that number by the rate you charge for that service. That’s your top potential gross earning. Now multiply that number by .75 to get to your gross income running at 75%– that’s a safer number to work with.
  2. Add up all your business expenses. Subtract these from your 75% number from step 1.
  3. Estimate your taxes and subtract these from the number you get in step 2. (A quick call to an accountant can give you a ballpark formula for your taxes. We recommend www.dog-pro-cpa.com.)
  4. Compare the number from step 3 to what you need to live on. How does it add up? Can your business as currently set up provide what you need?

If the answer is no, look at raising your rates. What would you need to charge to cover your personal living needs? (If that number isn’t a feasible rate to charge, it may also be time to consider additional services or other service approaches to make the math work.)

When you’re behind. We recommend reviewing other rates in your area yearly to keep a thumb on the going rates. If you aren’t charging at or near the top rate in your area, but are offering top notch services, it’s time to step up.

When you’re busy. Business bustling? Have a waitlist? Turning people away or referring them to colleagues? It’s absolutely time to raise rates, no doubt about it. You’re popular. People love you. There are potential clients standing in line to get access to you. They’ll be willing to pay more.

When you haven’t for a while. It’s important to review your rates yearly, and raise them periodically. Avoid falling behind. A small rate increase every year or two is much easier to orchestrate than a large one every five years.

How To Raise Your Rates?

Write a letter. Craft a letter for your clients announcing and explaining your rate increase. A written letter is best if you can, as it’s a nice personal touch and gives people time to digest the information before they respond. Don’t over-apologize about the increase—that only encourages people to be upset. The tone of your letter should be even, warm, and confident. Put a marketing spin on your rate hike—how does the increase actually benefit your clients, what does it allow you to do for them? Does it help protect your ability to maintain small daycare or walking groups, the very reason your clients chose you? Keep class sizes small? Allow you to continue boarding dogs in your home environment a few at a time for maximum attention to each? Help your clients understand the reason for the increase and they are much more likely to be understanding.

Give clients time to digest. Provide a grace period between announcing the rate increase and putting it into effect. We recommend a two-month minimum before clients actually see a difference in their bill. If you’re facing down a large increase, implement it over time. For example, a $5 increase in an ongoing service like daycare or walking can be a large pill to swallow. Let clients know about the increase, but explain that it will take place in phases—perhaps a $1 increase in two months, another $2 six months after that, and the final $2 another six months beyond.

Avoid the bad times. Don’t announce rate increases at already financially stressful times of the year, such as the holidays, the New Year (a common time to receive rate increase notices), and tax time. These times may negatively impact clients’ perception of your increase.

Don’t Fret

Every client we have worked with on raising rates worried terribly about losing all her clients in the process—and every client has been thrilled with the results afterward. If you handle the increase well and are increasing rates on committed clients you’ve taken great care of, there will be no mass exodus. In fact, our clients very rarely lose more than two clients, tops. And with everyone else paying more, they generally come out ahead even before replacing the one or two who choose to move on.

Brand loyalty is a powerful thing, especially in an industry like ours. Once someone has forged a relationship with a pet sitter or dog walker or daycare operator, it’s very difficult to imagine trusting their dog to anyone else. You’ve practically become family. You relieve a great deal of stress, worry, and guilt for your clients. They are unlikely to create upheaval in their lives searching for a new dog pro over a $2 rate increase.

So take a look at the rates around you, assess your own, and if warranted, take a deep breath and make the commitment to charge what you’re worth. You deserve it.

We take a deep dive into rates and services in THRIVE! Take a look and see if our group coaching program is for you.

Smart Discounts for Dog Pros: Don’t Give the Store Away

Everybody loves a deal, and everyone loves to spend less if they can, no matter their socio-economic standing. Have you been hearing “Do you have a discount for (fill in the blank)?” a lot lately and wondering how to respond? Are you tempted to offer discounts when business is slow? Here are some discount do’s and don’ts to protect you from giving your store away.

smart discount policiesHave a policy in place. Never put yourself in a situation where you have to decide on the spot. Know ahead of time what, if any, discounts you offer, have a firm policy, and stick to it.

Avoid across-the-board discounts. For all shelter dogs, for example. Such a discount is great in areas where shelter adoptions are rare and need to be promoted. But in some cities half to two-thirds of all dogs are shelter adoptees. A discount that applies to eighty per cent of your clientele is not a discount; it is your de-facto rate.

Apply discounts uniformly. It is the law. The IRS takes a stark view of whimsical discounts and should you be audited, you must prove you have set policies.

Avoid ongoing discounts. Especially important for daycares, walkers, sitters, and boarders. With a limited number of slots to fill, allowing an innocent amount off weekly services means giving up a considerable annual chunk—which you can’t replace. If you have ongoing discounts, take a few moments to do the math—the amount of money you’re losing will likely stun you.

Don’t discount:

For up-front payment. Payment in advance should be your standard policy, full stop.

For all non-profits. There are simply too many worthy causes. Either provide a small discount to one or two favorite groups or volunteer a set amount of time. As in: “I’ll work with one dog at a time, on these kinds of cases, and the family has to be in real need and not be able to pay for training services.” The rescue group should do the screening and you decide when each case is done and you can accept another. This way you help but don’t butcher your income stream and rates.

For sob stories. A particular hazard for trainers. You will hear, “Unless Rex stops barking I’ll have to give him up,” “My mother’s in the hospital,” or, “I lost my job.” And there you are, seeing how Rex’s quality of life could improve through your work.

These are tough situations and you need a strong set of rules to carry you through. Compassion is understandable (and praiseworthy), but don’t let other people’s financial problems become yours. To make a living as a dog pro you must separate your desire to do volunteer work from your professional life. You have only so many hours every day in which to train. If you go bankrupt, you won’t train at all. Dogs in need of help don’t know if their owners have money or not. Help ten dogs this week and you help ten dogs. Help ten dogs for free this week, and next week you will be working behind a desk to pay the rent. No dogs helped.

For friends. Better yet, don’t train for friends at all. People rarely take advice or homework seriously enough when a friend gives it. Then compliance fails, the dog doesn’t improve, and tensions in the friendship follow.

Do discount:

For volume. People who sign up for Puppy and Adolescent classes as a package, for example. But make it reasonable, don’t give away the store.

For vets and vet staff. So they can experience how good your service is and refer to you. This applies to other referral sources as well—the independent pet store owner and staff, shelter staff, etc.

For your favorite cause. Is Greyhound rescue close to your heart? Or senior dogs? That is a good reason to offer a discount. Just make sure the group you favor is smallish, or you may get a reputation for low rates that nets you an entire clientele of discounted people. No business can survive that way and being passionate about something should not preclude earning a viable income.

Remember…

Clients who haggle rarely respect your skills and qualifications and, when given in to, will likely prove difficult to work with. The same client would never barter in a lawyer’s office. Plus, when your fees are negotiable it undermines your professionalism—you are an expert at what you do; it’s okay to charge for it. If you need more support when it comes to pricing and services, this is an area we explore fully in THRIVE!

Training The Perfect Dog Pro Staff

Staff training is essential to the success of your business. The better trained your employees are, the smarter they work. Well-trained employees are more engaged and more likely to solve problems independently. Because they feel more valued, they are happier in their jobs, which in turn is reflected in their productivity.


And yet, job training is often random and uninspired. An outgoing employee shows a new person the ropes in whichever way he or she likes. A manager spends half an hour going over a new piece of equipment or software. One complaint too many triggers a lecture-style presentation by the owner on ‘best practices’ in customer service. But job training should be forward-looking, interactive, ongoing and regular, and carefully planned—it should be an integral part of your business strategy, not something you are forced into by circumstances.

Train With Purpose
Base your staff-training program on your job descriptions. What do you want your employees to know and what do you want them to do? Your program should teach and develop that knowledge and those skills. The more clarity and precision your job descriptions have, the easier it is to design a staff-training program.

Design for the long haul. Training should be ongoing, not reserved for new employees or left until problems arise. You can follow this strategy and still allow for tactical, one-off sessions to address specific problems or to teach new skills. (Don’t be afraid to ask employees for ideas about topics for ongoing training. People on the front lines are often the ones with the greatest insights into what might improve everyday work life for staff and the service experience for customers.)

Goal Setting
A training topic—or fancy title—doth not a training session make. In other words, don’t mistake a training topic for the intended outcome of the session. Customer service may be the topic and How To Wow the title, but for training to be successful you need a clear set of goals for your desired outcome.

Goals should be:

Specific: Spell out what you want people to know and do. “This training will be about customer service” is a non-descriptive statement about a topic broad enough to encompass most anything. By contrast, “Learning protocols for greeting clients in the morning rush” describes the content of the training session in specifics. “Learning to read canine body language” is too broad; “Recognizing when a dog is anxious” is well defined.

Measurable: Another problem with broad goals like “Learning to give good customer service” is that they are tough to measure. What would the yardstick be? No more client complaints ever? A measurable goal would be “Employee will be able to follow phone protocol.” The goal “Take good care of the dogs” is open to interpretation, whereas “Keeping kennels clean” or “Using positive feedback whenever a dog greets you calmly and politely” is immediately quantifiable.

Achievable: “Learning basic training skills” is a specific and measurable goal, but it is too big a project to achieve to any satisfying level in just one training session. Instead, aim for something like “Learn basic luring techniques and when to reward.”

Make Training Effective And Fun
One of the biggest training sins employers commit is to choose a lecture format for their training program. The research is unequivocal on this. People retain only about ten percent of what is said in a lecture, making it a very poor way to teach anybody anything.

Instead, make your training interactive. Provide plenty of opportunities for your employees to apply the ideas in practice. In addition to increasing the likelihood that the learning will stick, this approach has the further benefit of giving you the chance to see what they are learning.

Step 1. Get people invested by asking them to participate from the very beginning.

  • Send out a survey before the training, for example, asking people to contribute their experiences, concerns, questions, thoughts, etc. about the upcoming topic. In each case consider whether the survey should be anonymous, and whether it will be optional or mandatory.
  • Request a case study. Giving people a form to fill out often makes this easier and yields better information. The form might include questions like: What happened? What did you do? What were the results? How did you feel about it? What questions did this experience raise that you would like to see addressed?
  • Give people a short article to take a look at. Ask them to make notes for discussion.

And so on. The idea is to get people to interact with the material before the event. Say you were doing a training session on how to deal with difficult customers. You might send out an anonymous survey asking people to contribute a recent experience they found stressful and ask for details about how the scenario played out, the customer’s reactions, the results, how the staff person felt about the experience, and what questions he or she was left with.

Step 2. Always open your training with an interactive opportunity.

  • A brainstorming session, for example. Have people throw out ideas or questions or examples and write them all on a whiteboard for later discussion. (Always have a few examples up your sleeve to get the ball rolling if nobody volunteers.)
  • A quick poll. Prepare questions ahead of time and have someone capture the figures for some on-the-spot statistics: Sixty percent of Best Dog Kennel staff finds the cleaning manual confusing. Who knew?

Opening a training session this way gets people engaged and avoids setting the expectation that they are just going to sit and listen. Follow up by stating the goals of the session and, where possible, tying those goals into something your employees shared during the opening segment.

If we return to the hypothetical training session about difficult customers, you might open that by asking people to brainstorm the kinds of customer situations they find especially difficult.

Step 3. A lecture / presentation.

  • Cover the points you want to make, and the things you want to teach.
  • Keep it brief.
  • Load it up with examples.

In the customer training example, you might use the presentation part of the session to outline strategies for how to defuse troublesome situations, provide specific language for employees to use when a customer has a complaint, and describe the complaint process from A to Z, so everyone knows what is required of them if and when a customer is unhappy.

Step 4. Give people a chance to apply what they have learned.

  • Whatever format you choose, be careful not to put people on the spot. Begin by showing what you want people to do, while narrating what you are doing. Then give people a different scenario and ask them to brainstorm as a group how it might be tackled. If applicable, demonstrate their suggestions, and then ask everyone to chime in on how the proposed solution worked.
  • If you ask people to carry out a task or role-play, don’t make them do it in front of the whole group. Avoid anything that smacks of performance or testing; this is training. Instead, break people into groups or pairs, or give individual tasks that people can self-assess by comparing against an answer sheet. (Any performance-like role-playing should always be on a volunteer basis only.)

In our difficult-customer training example, this step might be a scripted role-play between you and another manager or a confident, pre-recruited employee. The role-play would be followed by a discussion in which you ask the group to analyze what you did and why it worked.

Then, in a second role-play, things should go less smoothly. Your counterpart would now throw complications at you. Stop at various points during the role-play and ask your employees to give you specific advice about how to handle the situation. Again, ask for input about what works and why, and what alternative approaches one might consider.

Finally, you could have your employees role play a new situation in pairs, letting them stop at various points to discuss how to handle things. (If an employee wants to role-play in front of everyone, take on the role of customer yourself. That way you can ensure the experience is useful, not painful, for your employee. Allow him or her to pause the action at any point and get suggestions from the whole group.)

Make It Count
Training is too often carried out in a vacuum, unrelated to everyday routines and problems. Tie training topics to daily protocols, systems, etc., and follow up to make sure procedures are applied. Use daily or weekly checklists to make this easier. Say you do a staff training on proper phone protocol. Provide a form that guides people step by step through the protocol while they are on the phone. Or, if your staff training focused on proper opening and closing protocols, provide checklists for people to follow.

Remember to reinforce the behavior you want. Make a point of complimenting people when you see them applying what they have learned during a training session.

Finally, tie your staff training into performance reviews. When you go through the trouble and expense of providing training on a subject, you are entitled to hold people accountable for what they have learned.

6 Tips For Keeping Great Employees

We’ve written about the importance of hiring help to get the support you need to push your business forward while maintaining a sustainable work/life balance. We’ve talked about finding and hiring the right people for the job. But equally important is doing what it takes to keep good people when you find them. Employee turnover costs time and money and causes a great deal of stress. So taking good care of the good ones is worth the effort.

Here are six things you can do to hold on to your valued employees.

1. Make It Clear
Even the best employees can’t be expected to read minds. Don’t make it a mystery how to be a model employee. Nobody should be left to guess what you’re looking for. Give new hires a list of review points on day one, and spell out in that document exactly what success for each review item looks like. Your employees should know what is expected of them and what to strive for.

And cut down on confusion by keeping expected tasks clear. Provide detailed protocols to follow for jobs like greeting clients, returning emails, answering the phone, cleaning kennels, moving dogs into and out of playgroups, etc. When employees know what’s expected of them they can more easily settle successfully and comfortably into their roles.

2. Reinforce, Reinforce, Reinforce
So important it’s worth repeating. You use R+ to get the best out of the dogs, and of course positive reinforcement works on people as well. We all like to know we’re doing a good job. Build opportunities into your schedule to see your employees in action. When you catch one making a good decision with a dog, let them know. When you see them land a new client or soothe an angry one, thank them. Employees feel a great investment in the business when they know their efforts contribute it its success.

Be specific when you reinforce—just like when coaching a training client, tell employees exactly what they did well and why you like it. “Great job!” is always nice to hear, but “I love how you noticed that Spot was getting nervous and cheerfully called him away from the other dogs to get him out of the situation. That was great proactive thinking!” is much more informative and likely to impact future action.

3. Make Room For Growth
Few of us are only singularly talented. With good communication and an open mind, you may discover your daycare attendant is a skilled writer, or your training assistant has a flair for social media. Let your team members try on different hats, and the results could surprise you. Surveys have shown that career development trumps pay or benefits when employees consider staying with a job. So keep the job interesting by adding new responsibilities or projects, particularly for employees who enjoy being creative, learning new things, or being relied on. And encourage employees to pursue continuing education, just as you do.

4. Be Flexible And Open
Be flexible where you can about schedules, particularly if you’re unable to provide a full-time position. And openly welcome suggestions and ideas from your staff about how everything you do might be improved. Keeping ego out of the picture and valuing employee suggestions can keep everyone feeling engaged and part of a team—and lead to great innovations for your business as well. A sharp employee may see an opportunity to increase efficiency, save money, or introduce a successful new service.

5. Walk The Walk
With every action, you influence team morale and model the behavior your employees will repeat. If you want them to treat clients well, you must treat your employees well. If you want them to handle challenges and setbacks smoothly, you have to tackle the same with calm and cheerful resolve. Create a culture where your business values are reflected in your day-to-day actions. Engage your team frequently in dialogue and leave room for their feedback. Of course you’ll make mistakes. But an authentic apology can earn you even greater respect and loyalty.

6. Let The Bad Ones Go
Sometimes an employee just doesn’t work out. We’ve noticed in our consulting work that dog pros will often let the bad ones linger too long, hoping they’ll turn around or wanting to give them another chance. Or you may be tempted to hold on because of a particular skill set an employee brings to the table, or just a lack of time to find a replacement. Whatever the reason, keeping difficult employees is never good for business. Resentments build, morale sours, clients flee.

We believe in the adage, “Slow to hire, quick to fire.” Take your time during the hiring process and you’ll encounter fewer problems later on. But when problems do arise despite your best efforts at training and communication, make a sober assessment. Is the employee damaging your business with poor customer service or a difficult attitude that’s negatively impacting the morale of other employees? Are there too many missed days, mistakes, excuses? Don’t risk losing good people by putting off the hard task of letting a bad apple go. Do it respectfully but firmly, and give yourself what you deserve: the chance to find, care for, and keep the right kind of help—the kind that will help your business grow.

Successful E-Newsletter Marketing

successful marketing with newslettersEmail marketing gets overshadowed by social media a lot these days, which is a great shame because email is a terrific marketing workhorse—free or low-cost, targeted, and much less time-intensive than social media.

Why Use an E-Newsletter
Here are four reasons you should put out an email newsletter:

  1. Sell your services. Being front-of-mind increases the likelihood of sales. Yes, existing clients know what you offer and can use your services whenever they need to. But so many things vie for time, attention, and resources these days it’s easy to be forgotten. Getting back on people’s radar can mean getting back on their priority list.
  2. Get repeat business. Clients are a built-in audience for new services. Already loyal to you, they’re the most likely to try the latest thing you’ve added. Assuming they’ll find out through other channels is risky, and people are more likely to respond to a direct message from someone they know.
  3. Build customer loyalty. Checking in creates a sense of community and increases brand loyalty, which means you’re the one they come to when they need dog-related services.
  4. Get referrals. The combination of brand loyalty and a gentle nudge that you’re there makes it more likely clients will think to refer a fellow dog lover to you. If their experience with your company is buried in the past, referral opportunities are easily missed. Staying in your clients’ consciousness keeps you on the tip of their tongues.

E-Newsletter Tips

Be useful and entertaining. If your newsletter doesn’t provide information and entertainment, people won’t keep reading. Talking too much about your business and services turns your newsletter into a glorified brochure. Yes, these topics belong in your newsletter. But unless you also include articles of general interest people will soon treat your newsletter as they would any other advertising material: Maybe a glance, then the trash button. Your end of the deal is to entertain and inform, not just sell your services.

Sell your services. Though you want to avoid too much focus on your business, the purpose of the newsletter is to promote your business. Don’t make the mistake of not including information about your services—particularly their benefits. Make contact information—website, email, and phone—clearly visible. Don’t hesitate to include a call to action. For example, “Fall classes are filling quickly—sign up now!” Or “The holidays are just around the corner—make your boarding reservations early to ensure your dog’s spot with us.”

Keep it short. Your email newsletter should be monthly and short. Share a quick tip, or an excerpt from an interesting article about dogs, or a humorous or thoughtful anecdote from one of your walks. Put together a fun profile of one of your daycare dogs, complete with a picture. Include a short call for referrals to friends and family or a schedule of upcoming classes. That’s it. Keeping each e-newsletter short and entertaining means clients are more likely to read the next one—and hopefully to pass it along, too.

Actively build your list. You’re going to put some work into getting your newsletter out each month, so the more people reading it the better. First of all, have a prominently displayed sign-up field on your website. Also include a ‘Forward to a Friend’ button in the newsletter itself. Most e-mail marketing services (and you should always use a service, such as Constant Contact or Mail Chimp, for example) offer this option as standard.

Also include a benefits-oriented call to sign up for your newsletter on all your materials, however mundane. Class sign-up sheets, handouts, brochures, postcards, rack cards, even business cards and invoices. Include it in your email signature and on your stationary. If you write an article for a local paper, mention it in your bio blurb. If you are on Twitter, tweet about an interesting newsletter item and link to the sign-up box on your site. On Facebook, post the entire newsletter and include a sign-up box beside it (a free, downloadable application lets you do this). Ask your brick-and-mortar referral sources (vets, shelters, pet supply stores, for example) to keep a sign-up sheet on their counter or in their lobby. And don’t forget to include it in your printed newsletters, too. In other words, never miss an opportunity.

 

Want the power of a newsletter without all the work? Check out our Newsletter Service.