Should You Reduce Your Rates for On-line?

This email could save your business. 

The answer to the question… 

“Should you reduce your rates?” is… 

Yes. No and maybe. 

There is no way I could give you that advice without knowing your business…the service you’ve been providing and the response you’ve been getting from your members. 

But there is one thing I can be sure of. 

If you DO decide to reduce your rates… 

DO NOT reduce everyone by a certain percentage in the same month.  

Here’s what I mean.  

If someone is paying $400/month and you want to give them a 25% reduction this brings them down $100.  

If you do this with everyone your total revenue for that month gets chopped by 25% over night.  

This will have a big impact on cash flow, something you don’t want right now. 

Here’s a better way. 

Give them the 25% reduction… 

But spread that 25% out over several payments (i.e. 5 months). 

So, in the example above you’ll be giving them a $100 reduction.  

Take that $100 and divide by 5 months and now you only reduce by $20/month. 

Cash flow is the name of the game for small businesses right now and this strategic decision makes it happen.  

While a reduction may or may not be necessary, preserving your cash is essential.  

The decision is a tough one and depends on many factors.  

Please do not take this as you should reduce your rates. 

In fact, I always prefer to heap the value in every possible way before I touched the price and I would honestly go toward this first. 

But in this very weird situation the longer this goes the tougher it gets. 

Good Luck! 

Vince Gabriele 

P.S. Next month I’m taking on a few clients through a mini coaching course to help gym owners with these kinds of decisions. 

Reply Back with Coaching if you’re interested. 

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