Charge What You’re Worth: When + How to Raise Your Prices
Excuse me for stating the obvious but…
Pricing is super hard.
And raising your prices… that can be downright scary!
Not only do you have to feel confident saying those “bigger than ever before” numbers aloud when a potential client asks, “how much”-- but there are also a lot of fears that can creep up when you decide to increase your rates, like:
Will anyone actually pay this?
What if I scare all of my business away?
Who am I to charge this much?
But think about it this way-- your pricing is simply part of your branding.
The rates you charge send a direct message to your clients about what you believe your work is worth. It’s what they’ll believe it’s worth too.
So… you’ll need to decide if you’re going to be the Wal-Mart of your industry, or freaking Bergdorf Goodman.
But once you’ve decided you aren't Wal-Mart-- how do you know when it’s the right time to raise your prices? And then how the heck do you actually do it?
Let’s take a look at some ways you can make raising your prices a totally smooth transition…
THE TIME IS RIGHT TO RAISE YOUR PRICES:
WHEN YOU CAN’T COVER OPERATING COSTS
Seriously, if you’re in the weeds + can’t pay the bills, something has to give. In order to stay afloat, you need to increase your pricing immediately. You should always be pricing your services so that you can pay yourself, your taxes + cover your general expenses. If that’s not happening, you currently don’t have a business, you have a hobby.
WHEN YOU’VE REACHED A NEW LEVEL IN YOUR EXPERTISE
If you’re learning new skills + techniques that you can incorporate into your client services, you can raise your prices to reflect that. As you continue to educate yourself, you can use your new experiences as a way to increase your rates.
WHEN YOU’RE SCALING / BRINGING ON A TEAM
By working with others, you’re adding value to your client’s experience. Raising your pricing to reflect the work of a team versus the work of an individual is a great way to transition into a higher pricing model.
HOW TO RAISE YOUR PRICES STRATEGICALLY:
WHEN YOU’RE LAUNCHING / RE-LAUNCHING
If you begin to offer a new product or service or if you make some updates to an existing offer, you can use that as an opportunity to increase your pricing. Add your new pricing structure to your website then do a “re-launch” in order to debut your new packages + rates.
USE THE SEASON / INCREASE ANNUALLY
The truth is the price of doing business increases each year, so why shouldn’t your prices reflect that? You can use the beginning, middle, or end of a year to promote your seasonal pricing and let clients + customers know this rate will increase the following year. You can even use price increases as an incentive to work with you during specific seasons when things are slow (offer a deal on pricing in slow months + increase in busier months)
INCREASE WITH EACH NEW CLIENT
One of the simplest ways to increase your pricing is to do it gradually, as you become more experienced and gain more confidence. Your clients don’t have to know how much all of your other clients are paying-- so you can bump up your baseline pricing each time you bring on a new client until you’re comfortable charging more!
It's time to stop undervaluing yourself + start asking to be compensated for what your services are worth!
Even if you start small, by slowly increasing the rate you're being paid over time, that will give you the confidence you need to take bigger leaps-- so you can scale your business beyond yourself + hire a team!
READY TO BECOME THE FEARLESS LEADER YOU KNOW YOU CAN BE?
Click below to sign up for the totally FREE 5 Days to Freedom Challenge + learn how to stop working like an employee + starting running your business like a real CEO!