I’m hearing lots of service-based business owners, coaches and consultants say “I was going to raise my prices but now it seems like the wrong time to do it.”
But there are SO many reasons to raise your prices.
Reasons to put off charging more? I can’t think of any that aren’t mind-gremlin related.
Keeping your prices low will not make selling any easier, and it doesn’t make you a better person. I PROMISE.
Not convinced? Read on!
1. Higher paying clients are lower maintenance
I’ve seen this with my own business and I’ve heard it time and time again from business friends and influencers.
Higher-paying clients value your service simply because they’re paying more for it. This means they treat you with the respect you deserve and they’ll value your precious time more.
This is especially true if they’re paying you for your 121 attention and you need your clients to turn up on time and do the blimmin’ work.
A friend told me that she’d bought a cheap course the other day. She couldn’t even articulate what it was going to do for her.
How likely is it that she’ll go ahead and complete the course? Will she pay 100% attention, implement her learnings and give it her all?
And what if she thinks ‘oh it was only fifty quid, I’ve decided I’ve got better things to do’.
Is she likely that she’ll recommend it to others and go back to the service provider and buy more? Unlikely.
People who pay, pay attention. The more they pay, the more motivated they are to make it work.
Extra Brucie Bonus: Higher paying clients are more likely to pay on time too. Strange but true!
2. Charging more means less selling
Let’s assume you only have time and headspace for 8 one-to-one clients at a time and you charge £500 per client per month. That’s an earning cap of £4,000 per month.
Charge £575 and you only have to have 7 clients to earn the same money.
Charge £665 and you only have to service 6 clients to earn the same money.
You need to find fewer clients to earn the same money.
This is the way successful business owners think: ‘I need to earn £X, I only have Y hours, therefore I’m going to have to charge at least £Z.’
Once you start down the road of thinking about whether people can afford it or not, you’re getting into the sucking sands of assumption land. You can’t possibly know whether people can afford it. Unless you’ve been spying on them. In which case you need to stop that, it’s illegal. People will pay if they see the value in what you’re offering. If they don’t, they won’t. It really is that simple.
Now open your listening ears, I have something important to say to you:
You deserve to make a good living.
A good living means you’re doing something that uses your unique skills and you’re being compensated enough to motivate you to do a good job. And not to be run ragged because you’re having to squeeze in as much work as possible to make ends meet.
If you’re working your bum off around the clock to pay the bills or getting paid less than your worth, you’ll either burn out or lose the will to do a top-notch job.
Don’t do that to yourself. Start charging more and watch that motivation magic happen.
3. Fewer clients means more time
One of the main gripes of coaches and consultants is the lack of time they have. Even with a team to support you, you’re still the CEO, the head of marketing, the finance director, the sales team and often doing the lion’s share of implementing and servicing clients.
Charging more is the key to having more time. Because you need fewer clients to make the same money you’re likely to be:
- Spending less time on client work
- Spending less time on lead generation and follow up
- Feeling more relaxed about your business which allows you to be more creative
If, horror of horrors, you end up making more money as a result of charging more, you can invest that in outsourcing. Then you’ll have even more time to strategise and send your business rocketing in the right direction. Virtuous circle, here you come.
Ideas of what you could do with all this excess of free time:
- Create a income stream that requires less of your time and energy e.g. run a group programme or DIY course
- Build your audience so that you’ll be able to sell more easily in future
- Hone your niche and your message so that you’re more efficient with the time you spend on selling and promoting
- List all the possible podcasts you could be featured on and start pitching
- Start work on that big goal you’ve been procrastinating over
- Write me a long thank-you email
4. Higher prices position you as an expert
Don’t like that? Sorry, it’s the way it is.
If something costs more, it sends a message that you’re good at what you do. It shows confidence in your own abilities. People will assume you have higher quality services.
That’s why it’s so annoying when someone less talented or less ethical than you is charging so much more. You shouldn’t have to feel like that.
You have two options in this scenario:
Option 1: Moan about those overcharging gits behind their backs.
Option 2: Charge what you’re worth and forget about them.
I know which one I prefer!
5. Because you might as well do it now
There are ALWAYS excuses to delay the decision to charge more. This is fertile imposter syndrome territory. ‘Who am I to charge so much?’
This crisis is an absolute peach of an excuse for those negative Norma thoughts. Don’t let them win!
I’m not suggesting you whack up all your prices indiscriminately across the board. Only on the services you’ve been meaning to charge more for. You don’t have to increase prices for current clients at all! Many service providers freeze their prices at current rates for current clients. (But only do this if they’re good clients who you want to retain.)
Seriously, what’s the worst thing that could happen? Then think about the best thing that could happen: doing less work for more money with clients you love.
But Janine, no one has any money right now!
Some people are struggling, it’s true. But some are doing fandabbydozy and they need your help. Not only that, but they want to work with someone who feels ecstatic to work with them. Allowing them to pay you what you’re worth is a win-win.
If you’re feeling lots of ‘buts’ rise in your noggin, take a look at these 3 price-drop myths. None of them are good enough excuses to let your business stagnate.
Having a business that thrives a global recession is something to feel proud about.
Only this week I heard about a farm who lost 90 per cent of their business when restaurants closed. Instead of giving up they decided to make better use of their direct-to-consumer online shop. It’s now thriving, and I’ll bet the price tag is more than what the restaurants were paying wholesale. But people are happy to pay because of the high quality and locally sourced nature of the produce.
Are you feeling like you might be up for it? Hang on a minute, I have two more things you need to avoid.
Top tip: Don’t ask for feedback on your pricing
It’s so tempting to get some validation on your pricing but DON’T! You need to price your services based on what YOU know it’s worth.
Clients will always say they want it cheaper. In one role, during my corporate career, I ran yearly market research studies. To begin with, we’d ask customers what they thought of the price. They ALWAYS said they wanted it cheaper, but then they would nevertheless buy when it came to the crunch. In the end, we took out that question because the responses were useless. It didn’t represent the truth.
Friends and family will always say do it cheaper. Friends and family are unlikely to know the value of what you do. Are they your ideal customer? No. I didn’t think so. Their opinion on this matter is not relevant.
Business friends, coaches and influencers will often say do it cheaper. This is the most shocking one, but it’s understandable. Everyone has their own money-mindset hang ups and we project them onto other people. What we’d be prepared to pay for something. What we’re being paid for something. I have a friend who was in a mastermind and was told by the person running it to charge less even though she knew it for a fact it would sell at the higher price because she had sold it many times already.
It’s about you and your clients and the value you’re delivering. That’s it.
Still feeling queasy about charging more?
I know that charging more can be a triggering and scary thing to do. That’s why I’ve put together this free guide 6 Steps to Charging More with 100% Confidence.