Episode 296: Think About This Before Your Next Price Increase!

Have you been thinking about increasing your pet sitting prices this year? Or have you recently increased your dog walking prices, and now you're thinking it may not be enough... harging the wrong amount can be the difference between a thriving business and going out of business. Ouch There is so much to consider before increasing your prices, so that you don't find yourself sinking six months later. Today, I am going to tell you everything you need to know, before increasing your pet sitting prices. Biggest Takeaways: Before increasing your pet sitting prices, it is important to have a sound pricing structure and strategy in place. This is your time to rectify any mistakes you might have made with your old pricing structure, and apply new found knowledge to your future prices.  Creating a pricing strategy that works best for your business requires consideration and time. What should you be researching? Have you thought about your competition? Should you? Is the value you provide worth the increase? What about staff wages? Considering important aspects and knowing how to navigate them is some of the first steps in creating a sound pricing structure for your pet sitting business. Recommendations: The value you provide shines through your website and social media. Now is the time to make sure your social media and website are up to par when clients and future clients are looking for pet sitting and dog walking companies. Better Marketing With Bella provides 6 months worth of content for your pet sitting business to stand out above the rest. If you are interested in having the rest of the years content covered, we can provide that for you. In the Mastermind group we talk a lot about pricing structures. Members have the chance to bounce ideas and experience off of each other when they need some help. This group is filled with HR answers, member accountability and like minded business owners achieving all their business goals. Looking for website hosting or new site you need to check out Barketing Links: Better Marketing With Bella Mastermind Gingr Pet-Care Software Barketing Blog Pricing Guide Structure and Strategy Transcript: This is episode 296 of Bella in Your Business. Let’s face it—managing your pet care business can be a doggone hassle. Fortunately, Ginger Pet Care Software makes running your business a breeze. Enjoy time-saving features like a pet parent mobile app, automated reminders, integrated payment processing, pet report cards, and more. Ginger gives you the time to do the things you need and the things that make you happy. Visit gingerapp.com/bella to claim your free one-month subscription. That’s G-I-N-G-R-A-P-P.com/bella to claim your one free month subscription. Hi there, I'm Bella Vasta from Jump Consulting. You might know me from CBS, NBC, Fox, Huffington Post, Entrepreneur, or maybe you've seen me speak on stage or read my book The Four Dogs That Every Business Owner Needs. In any case, get ready because you're about to get your hashtag Bella Butt Kickin' in this next episode of Bella in Your Business. So what do you say? Let's get ready and jump. Welcome to another episode of Bella in Your Business. My name is Bella Vasta, your host, and today we’re going to talk all about creating a pricing structure in today’s economy. Now, this is going to be an interesting topic—not just for those starting out, but for anyone who already has a business and is adjusting pricing right now due to inflation and rising minimum wage laws. We need to talk about this because some of my Jumpers are doing really well, while others are literally going under and are cash-poor. I’ll start by saying this—the economy is going to get worse before it gets better. I really want to encourage you to have cash in the bank, in your business account, because you may have rainy days ahead. You don’t want to be caught off guard like many were in 2020, robbing Peter to pay Paul just to stay afloat. Hopefully today’s podcast ignites ideas for you on how to recession-proof and grow your business. Now, let me add some context. The last major recession that impacted small businesses was in 2008, when the housing market crashed. I had my pet sitting company at that time, and I decided, “Screw the recession.” I dove deep into Dan Kennedy’s No BS Marketing to the Affluent. I’ve done several book clubs on that book, and it talks all about the “affluent mindset.” It’s not about being rich—it’s about believing you and your pet deserve better. That’s the mindset I want you to have as you listen today, because in order to thrive through this economy, you need to see ahead—take off the blinders and think strategically. Everything I’ve predicted this year is coming true. Everyone was having record-breaking months in March. We’re now in “revenge vacation” mode—people are traveling like crazy. But travel prices are astronomical. A ticket to Dallas costs what first class used to cost to the East Coast. Inflation is high, and although vacations look great now, I question what will happen in the fall and winter when costs remain high. Dog walks are also dropping off this summer because people are tightening their wallets. They’re saying things like, “My kids are home from school,” or “We’re traveling, so we’ll pause services.” That’s why in Q1, we focused heavily on sales. If you haven’t already, go back and listen to the January through March episodes—they’re still highly relevant. So today, let’s talk about how to restructure your pricing in this economy. 1. Do Your Homework Before changing or setting prices, understand your business expenses—not just costs, but also the profit or savings you want to build. I treat savings as an expense—it’s something I “pay” every month. That’s how you build a financial cushion, both for your business and yourself. You’re in business to prosper—not to be a slave to your business or constantly in debt. Do your homework: calculate the cost of goods sold, overhead, labor, memberships, marketing expenses, software, uniforms, and so on. Know your profit margin every month. If you do both dog walking and pet sitting, break your P&L down by service. Understand where your revenue and costs truly are. 2. Don’t Consider Your Competition This might surprise you, but I don’t care what your competition is doing—and neither should you. The only time I cared what competitors charged was to make sure I charged $10 more. Back in 2016, my lowest rate was $25 and my highest was $35. That was six years ago! If you’re still charging $25 today, that’s your wake-up call. You have no idea what your competitor’s expenses, debts, or goals are. So why base your prices on their numbers? Most competitors sell “dog walking and pet sitting.” But you’re selling an experience. When you focus on solving emotional problems—peace of mind, reliability, quality care—you’re marketing to the affluent. You’re not just trading time for money. Read No BS Marketing to the Affluent if you haven’t already. It’ll shift your mindset completely. 3. Think About Value Value isn’t just about the service itself—it’s about the experience you provide. Do your clients feel guilt-free because they know you’ve got everything handled while they’re in back-to-back meetings? Do you make their life easier? Are you seamless, reliable, and easy to book? Do clients know exactly what to expect from you every time, or do they feel uncertain after every message? Your perceived value is what people pay for. Communicate it clearly in your marketing. 4. Consider Staff Wages Think not just about current wages but also where they’re heading. To attract and retain quality staff, you must pay fairly—ideally with room to grow. If you’ve taken my Pricing Structure & Strategy Class (available for $79 at jumpconsulting.net/shop), you know your labor should not exceed 40% of revenue. Ideally, it should be around 32–35% so that even with taxes and increases, you stay under 40%. Talk with your CPA about creative options like mileage reimbursement, gas stipends, or drive-time pay. There’s more than one way to support your team while staying profitable. 5. Create a Pricing Strategy I’m not a fan of static, one-size-fits-all pricing. People love feeling like they’re getting a deal—especially affluent clients. They hate being nickel-and-dimed, so keep it simple and transparent. If your website has a dropdown of ten different services, you’re overwhelming people. Instead, consolidate. Make it easy to understand. When I ran my business, I had three tiers: $25, $33, and $35. I always started with the highest, then “discounted” it based on commitment or volume. Clients loved feeling like they were getting special treatment. That’s what airlines and hotels do—everyone pays differently. So don’t be afraid to price strategically. Inflate your base so you can offer flexible options or “discounts” without losing profitability. Recap If you’re rethinking your pricing structure in today’s economy: Do your homework. Know your expenses and profit goals. Ignore your competition. Focus on your own financial health. Understand your value. Sell an experience, not a transaction. Plan for staff wages. Think ahead and talk with your CPA. Create a strategy. Make pricing simple, flexible, and confidence-building. If you want to go deeper, we discuss financials and pricing every year in the Mastermind. Each year builds on the last, with new data and strategies. Join us at jumpconsulting.net/mastermind. Monthly is $177, or get $50 off the annual plan. You’ll learn how to grow sustainably, remove yourself from day-to-day tasks, and build a business that truly thrives. If you have questions, email me at [email protected]. Before your next price increase, think about how you can color outside the lines.