This is a question I get asked a lot, and the simple answer is to raise them whenever you want (it’s your business, after all!).
You don’t need a new certification. You don’t need 2 more years of experience. You don’t need to build a new website.
And you certainly don’t need approval from anyone.
As Nike says, “Just do it.”
But in case you’re like 100% of my clients 😉 … know that it’s completely normal to feel resistance to raising your prices.
Let’s go through some guidelines and strategies together to help you get clear about when, why and how to raise your prices. (Be sure to read to the end for a tip to make the whole process easier!)
When should you raise your prices?
• You are at or close to capacity with client appointments in your calendar.
• Prospects tell you they would have paid more.
• You’re starting to resent the time you’re spending with clients.
• You realize your pricing model won’t allow you to make the income you want.
Before I go into the why and how of changing your pricing, I want to be clear about something. Adjusting your pricing doesn’t mean charging a sky-high price for your services. One great way to get more income out of your time is to look at different delivery models, like creating knowledge products or group programs to supplement or replace one-on-one work.
With that being said, don’t be afraid to charge a premium for your time.
Why raise your prices?
• Reduce your stress level around money so you can take care of yourself and continue making a difference through your work
• To model a healthy relationship with money for your clients and customers (everyone has money issues!)
• Your clients will engage more fully and see better results when they are more invested financially
That last one always struck me as strange, but I’ve seen it prove out time and time again. Think about it. If you paid $5 for a personal trainer to meet you at the gym twice a week, how motivated would you be to show up? Now what if you paid $2400 for 3 months for the same personal trainer? At which price point are you more likely to show up and, consequently, get better results?
Same goes for your clients.
How do you raise your prices?
1. Adopt a philosophy of generosity. Instead of approaching pricing from the mindset of “how much can I get from people,” I highly recommend a different question: “What pricing will make me feel 100% free to generously give to my clients without resentment or feeling like I have to charge extra if I invest a little extra time with them?”
2. Ignore what people think. Or rather, what you THINK other people think. The truth is, people do not wonder about how you came up with your pricing. They don’t. Really. I mean it.
Just as you don’t quiz the clerk at Starbuck’s about their exorbitant latte prices, prospects are wrapped up in their own lives and trust you know how to run your business and set your prices.
3. Create a communication plan for existing and new clients. This is both the most difficult and most important step. But once you have the timeline for rollout and the words to express your value, then everything else flows.
How do you make raising your prices MUCH easier?
Have a clear marketing plan, compelling messaging and a simple sales process. What people will pay for your services depends significantly on the value you establish up front. With a clear marketing plan to establish credibility with prospects, compelling messaging to make them say “I need YOU” and an sales process that consistently closes the sale, by the time you’re discussing pricing with a prospect, the investment isn’t much of an issue. This happens for my clients and me all the time.
One last thought… give yourself raises on a consistent basis. In the corporate world, we could depend on cost-of-living increases and promotions. It was structured and determined by the corporate machine.
When you run your own business, you only have yourself to depend on for increasing your income. Don’t be afraid to get paid well for your gifts and talents. You’re worth it!
Thanks for reading! If you’d like individual mentorship on how to raise your prices and communicate your value, please get on the calendar for a time to talk! http://marycravets.com/breakthroughwithmary