How to Raise Your Prices (So Your Clients Will Thank You!)
“You don’t have to do that, Wendy…”
“You don’t have to send us your
rates; just send in what you actually charge,” he said with a smile.
He was the head of a group that processed claims for my still-new counseling practice. “Those
my actual rates, “ I replied, blushing.
Apparently, they were a little low.
Today, I see that same thing with my coaching clients; outstanding professionals whose prices don’t
to reflect the value of their service. But when I encourage them to raise their rates, they’ll argue with me. :)
Why is this so hard?
It usually comes down to two main fears.
The first is that if we raise our rates, our clients will leave, and our business will die. Yikes. The second is that we’re being sinful, selfish or greedy. Usually,
oth of these
are underneath that resistance.
One of my clients, an amazing energy healer who had more business than she could handle, and nothing
5-star reviews, became almost sick at the thought. It took a LOT of coaching to get her through that!
Is it time to raise your prices too?
Many of you are already charging a
of what you’re worth.
But even if your prices are solid,
you’ll eventually need an increase. For one thing, as your business grows, your clients will expect it!
For another, your business is it’s own, small economy. And a healthy economy is a
Don’t you want a raise like everyone else?
And there’s another reason you’ve got to stop under-charging.
Your clients feel
when your rates are too low. Yes. Guilty.
I once worked with a financial advocate who did great work, but her rates were rock bottom. After we started working together, she tripled those prices, and one of her clients actually thanked her for it!
That client had been reluctant to ask her for help,
because she knew she wasn’t paying her what she was worth.
I can’t tell you how many stories I’ve heard of top-notch professionals whose clients write checks for MORE than the fee. That’s why.
do you raise prices? It’s easier than you think.
Raise rates across the board, all at once.
Consider retail stores. Do they announce a price increase? No. A new round of stickers overnight does the trick.
Do you have an Etsy shop or sell a product
(on or off line)?
Make the decision. Adjust the published rates. Done.
If you have a service-based business
based on extended relationships, you can
that transition with advance notice.
When I shifted my first business to a higher priced, package-based format, I gave everyone a full 90 days to get used to the idea. That gave them plenty of time to prepare, and
all but one
stayed with me through that transition.
Raise rates for new business only, while allowing existing clients to stay where they are.
By giving current clients ‘grandfathered’ status, at what is now a lower rate, many may work with you even longer. This is especially true if you have a coaching, consulting, training or other similar business where a longer relationship with your clients means even
results for th
BUT WATCH IT!
Don’t use this option just to avoid the discomfort of raising prices. Do this only if it makes strategic sense for your business.
Allow grandfathered status, but only for a specific time period.
It gets messy with different clients at different prices for the same service. Uniform pricing will make your bookkeeper happy. :) But you can do this and
honor your existing clients, by giving them a little bonus time.
Let’s say you make the decision to raise rates on September 1 for all new business. Tell your current clients the change is coming, but that you want to reward them for their loyalty.
They get, say, 6 extra months at their existing rates, and won’t pay the higher rates until March.
Now they have time to budget for the increase, and feel a little special too.
Another way to leverage a price increase is to give your existing clients a chance to buy
at the current rates.
Let’s say you’re a yoga instructor who offers packages for a series of classes, and you’ve decided to raise your package rates.
You could offer existing students the chance to
, at the current rate, before the rate increase.
For that matter, you could announce the coming increase to your entire list, and invite them to buy ahead too!
They get to save money. You have a nice income boost up front. And your next round of classes will fill up faster!
Which of these works best?
I’ve used all of these at one time or another. Your best option depends on a number of factors, ranging from your personal comfort level to the nature of your business.
you do it doesn’t matter, really, as long as you do it with positive energy, in a way that is respectful of your clients, yourself,
So – is it time for you to raise
Episode 32. Magic Marketing for Your Private Practice
Episode 31. Take a Break, for Pete’s Sake. Your Clients Will Thank You.
Episode 30. How She Turned a $12,000 Billing Disaster into 8 Streams of Income: An Encouraging Interview with Kym Tolson.
Get it here!