After some time with your business, you’ll either want to start charging more per hour or introduce some higher priced products to generate more revenue.
When you are solving big problems for your clients and are starting to build your reputation, a higher rate is usually the standard. The problem is that sometimes we spend so much time feeling guilt over wanting to raise our price.
We worry about our customers and clients leaving, complaining, or that they will stop sending referrals our way.
However, you know when you need to start charging more. As soon as your business makes you feel exhausted and like the benefits aren’t worth the work, you need to adjust. Your business should fulfill you and if you are helping people change their lives, the rewards should feel good instead of draining you.
If you’re still wondering if you should raise your prices, ask yourself:
Is the demand for my services higher than the supply?
Have I raised my prices in the last year or two?
There are many ways to go about raising your prices to give yourself the lifestyle you deserve, and here are some of my best tips:
1. Drop off some programs or products.
To get rid of any money worries, can you brainstorm a new way to package your brilliance to sell?
If you feel like one of your programs should be raised to a higher price, do a cleaning out sale and take it down. Then take it, add more value to it with the things you have learned, and re-package it to sell later on.
2. Add more programs or products.
I know, I just told you to drop off your bad performing sales packages. At the same time, you should consider adding new packages you haven’t offered before.
For example, maybe you are a professional organizer and everyone asks you for your tips on spring-cleaning. Instead of creating more time to bring on clients at the same rate, you should consider packaging all your steps into a downloadable video. This way, you can keep your same clients while opening up a whole new income stream you didn’t have before without spending time on each individual.
2. Niche down.
Do you think a “business coach” or a “business coach who specializes in women CEO’s” makes more money? You’re correct if you guessed the second one.
When business owners niche down on whom they help, it makes them appear to be even more of a specialist, thus demanding a higher rate.
Is there a certain demographic that you prefer to work with? Is there an area that you have a passion for? You’ll become the specialist
3. Be clear on your value.
When you remind your customers what you bring to the relationship, they will understand why your prices are going up.
This is why it is essential to showcase your past work and testimonials for your business. When other people see that you bring huge changes to others lives it makes your value proposition incredibly clear.
4. Consider only hiking up prices for new business.
If it really does not serve your loyal customers to raise their prices, consider only rising prices for new business this year.
This depends entirely on your business model and the relationship you have with your clients and customers.
5. Only raise prices on certain areas.
Another option to raising your prices this year is to only raise it on certain things such as your speaking engagements or classes.
What are you looking to change with your pricing this year?