Today I want to share with you an astonishingly simple and underused method of making more money from whatever you are doing.And even if you’re employed in a 9-5 job, this principal still applies.
A friend of mine is a qualified (and very good) sports masseuse. Up until last year he was charging £35 per 40 minute session, and was making a decent living. But, like everyone, he could do with a little extra money.
The answer was staring him straight in the face…
I told him to raise his price to £38 a session.
Eek! Do what? RAISE prices, when everyone is so worried about costs? Surely this is madness?!
Well I may pace up and down in my dressing gown talking to myself most mornings as I try and crack another project, and I may support Derby County FC (both sure signs of losing your mind), but when it comes to increasing your income, raising your wage is the easiest thing to do. And almost without fail, it works – IF you chose the right level.
In my friend’s case, going from £35 to £38 was a no-brainer, because £38 is perceived as being almost identical to £35 in the most people’s minds. You may not think so staring at these figures in black and white, but I really doubt you’d quibble over the extra £3 in reality – not if you liked the product or service.
So my friend did as I suggested and guess what…? Not one customer left him. Even better, not one customer complained or made a negative comment.
That means another £5,000 or so a year without any costs attached. The money goes straight into his pocket (at least until the taxman tries to mug him).
Basically he ASKED for a £5k a year pay rise, and got it without any drama.
And this is what you should be doing as well.
Few people notice or mind a 10% price rise – that’s the reality. But it makes a HUGE difference to your profits.
‘Oh that’s great Lewis. Cheers. I have a full time job, so how can I get a £5K a year pay rise?’
Simple, you do exactly the same thing, and ‘raise your prices’.
How to squeeze extra out of your boss without resorting to kidnap
This is not another of my ‘Derby County’ moments. I am not going mad. If you ask your boss for a rise, I reckon you have a 50:50 chance of getting it IF you pitch it in the right way.
Just bowling in a saying you want more won’t cut it. You need to make a strong case, and the best way by far of doing that is by showing ONE thing…
That you’re adding more value to the company.
If you can do that, then you have a great chance of getting a pay rise, because any boss who’s not an idiot will recognise he or she will be poorer without you.
What you shouldn’t do is winge about your circumstances. Don’t point out what long hours you work, or how far in you have to travel, or how the price of kids clothing has rocketed recently.
Instead, focus on how much you’re adding to the company.
If you’re bringing in new business this should be easy to do. Just point at your achievements with a big stick and make it clear how much you contribute.
If you’re a member of the backroom staff (accounts, IT, customer services etc) it may be harder, but you can still do it. Show your boss how your efforts have cut out the need to hire extra staff if you’re in accounts, or how you’ve negotiated a better price on stationary… demonstrate that your new software installation
has made it easier to cross-sell… show how you’ve kept more customers on and have even sold them new products if you’re in CS…
Basically have a think about any ways you’ve influenced the company’s profitability, and there’s a fair chance you’ll get a pay rise.
And here’s a trick to use…
Always plant a figure in the manager’s head. If you want a £5K pay rise show them that your efforts have brought in £10K or more. If you’re angling for a £2K hike, show them a figure of £5K or so that’s solely down to you.
In short, ‘give’ them a much bigger figure than you’re asking for.
Of course you might not get a pay rise. But one thing’s for sure… it won’t be held against you if pitched the right way. In fact it will mark you out
as having incentive.
If you are turned down, try this: “Okay. Fair enough. But is there anything I could do, any extra value I could bring to the company which would warrant a pay rise?”
Put the ball in his or her court. Make them tell you how you can get a rise. If you do what they say, they’ll find it very hard to deny you a fat raise the next time round.
I do agree with all the ideas you have presented in your post. They are really convincing and will certainly work. Still, the posts are too short for newbies. Could you please extend them a bit from next time? Thanks for the post.
lol!! this is a great idea!
So helpful and so useful post. Thanks for such informative post. Good job.
I know this if off topic but I’m looking into starting my own blog and was curious what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet smart so I’m not 100% positive. Any tips or advice would be greatly appreciated. Thank you