How to Raise Your Prices the Right Way
Everyone says to raise your prices to make more. While that is true there are things you should and should NOT do when deciding and implementing a price increase.
One question I get all the time, is “how do I raise my prices?” ?
When I first started I had a heck of a time charging what I was worth, thank goodness I had a mentor to kick me in the butt to make me move past my comfort zone and make me do this.
I am specifically speaking in this post to people that offer services, freelancers, coaches, consultants, etc…
If you have a product, or want to go even further after this video, check out eventualmillionaire.com/double where Millionaire, Jason Cohen talks about how to raise your prices with products.
When I first started, my mentor told me to charge $150/hr., and for a 24-year-old just starting out, I thought that was ridiculous! Thankfully he gave me a few quick tips on what to do that I’m going to share with you.
#1 DO NOT DISCOUNT!
I know sometimes you may get on a sales call and people cannot afford you, and that is ok. A lot of times, people that are looking for cheaper and cheaper prices, are not always good clients. And you really want ideal clients, because bad clients are a pain in the butt and just make you unhappy or cause more stress. You can always add on services to add more value to the service and make it less expensive in the eyes of the client.
#2 LEVEL UP
When you raise your prices, you also have to raise the value you are delivering to your client. Don’t raise your prices if you can’t deliver that value of service. You don’t want to be one of those people that overcharge and under deliver. Your service should reflect the level you are charging.
#3 GIVE A GUARANTEE
If for any reason you feel you can’t deliver on that level of service for what you are charging, just give a guarantee. If they are unhappy for any reason, you can just give them their money back. And of course, you should honor that guarantee. Also, ask for feedback on how you could do better, because this is an ever evolving process and you will only continue to get better and better.
Furthermore, when you charge more, you need less clients, which = less headaches. This then gives you time to work on your business and systems, and putting better systems in place because you are delivering more and more value because you have more time.
So take some time to think… What should you be charging?
What are other people in your space that are working with the most amazing clients charging?
This really helps people understand your level of value.
For example, having a website built could cost anywhere between $500 and $50,000 or more. Now your industry may not have that wide of a range of pricing, but just think about where you want to be.
How much profit do you want to make?
Once you come up with that number on what your new price is going to be, don’t rush out and retroactively tell all your old clients that you are raising your prices, that can be difficult.
What I want you to do is go after new clients with that new price point in mind.
Make sure that the people you are going after can afford this level of service.
Then for the old clients, give them a huge head up.
Say something like:
“In a few months [or whatever you decide] I’m actually going to be raising my prices. I just wanted to let you know way in advance, that way you understand it is coming down the pike and we can decide if this is still a really great relationship.”
You can also add more value.
So if you feel weird about going back to old clients and telling them you are raising your prices, let them know seeing they are a current (or previous client) and let them know they will get an extra… Whatever is going to add more value for them.
Action Items:
- “Figure out that price increase” (exact numbers and package prices)
- Create the new prices and packages in your payment processor.
- “Figure out the deadline for the price change and contact all of your current clients if you are going to give them a heads up!”
Thanks for tuning in!
Everyone says to raise your prices to make more. While that is true there are things you should and should NOT do when deciding and implementing a price increase.
Tags: business revenue, double revenue, finances, profit, Profitability, raise your prices, revenue increase, Wealth Building, wealth creation
Categories: All, Finance, Personal Finance/Wealth, Wealth Building
Hi I’m Jaime. Each and every week I bring you the top business advice from the people who know best.
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2 responses
Great photo love the hair.
This is helpful and doable. Thanks.