pay staff more

Should I Pay Staff More If I Raise My Rates For My Pet Sitting Company?

If you’re a pet business owner, you know that business is constantly changing. One of the things that constantly changes is the prices of goods and services. There may come a time in your business where you raise your rates, whether it’s because you’re trying to slow down business, make more money, or just make ends meet. But when you raise your business rates, should you pay staff more? Today let’s talk about the answer to this important question.

Should I Pay Staff More If I Raise My Rates For My Pet Sitting Company?

pet sitters' wages

Calculating What To Pay Your Staff

It can be difficult figuring out what to pay your pet sitter. But rest assured, once you find that that number you should never need to alter it, regardless of what your rates are! Yep, I’m giving you permission to keep your staff’s wages the same, even if you raise your rates. Raising your rates should be an opportunity for you to make more money, and if you raise your staff’s wages in the process, you’re kind of defeating the purpose.

To start, you’ll need to find the lowest price you can charge your clients and still make a healthy wage. Think of this number and write it down. Then, figure out what the wage would be for your staff off that number. Keep in mind your staff pay (labor) should be roughly 32 to 35% of your total business revenue (factoring in taxes and raises). That number you come up with is the number you’ll pay your staff whether you’re charging $20 a visit or $200 🙂

You want to have it spelled out in your employee manual what the wage is. Be clear that this wage has no bearing on current client rates and it doesn’t change based on the type of pet sit. If your staff asks about raises, I recommend telling them that raises are yearly based on merit.

Charge More, Make More

When you charge, you and the business make more. Like I said earlier, if you pay staff more when you raise your rates, you’re kind of defeating the purpose. The method above I spoke about is what you should use for piece work – or getting paid per visit. Basically, what you charge clients has NO impact on what you pay your staff. 🙂

Price increases happen constantly in business. It fluctuates. When you don’t have enough staff, you increase your rates for new clients. When you need to get your staff busy, you decrease the rate to the lowest rate you can afford. Having a pricing structure will really allow you this flexibility.

As business owners, it’s easy for us to get caught up in the needs of both our clients and our staff. I encourage you to start thinking more about yourself! In business, we should never think about what clients will “handle” with pricing or what staff will “work” for. This causes you to forget about the most important part of the equation – YOU!

pet sitting pricing structure

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