It’s Time For You to Raise Your Prices
Day in, day out, we all feel the same as yesterday – caffeinated, hopeful, focused – and so it’s simple to overlook a big change going on in your cerebrum.You're becoming more of an expert and specialist every day even if you don't notice it. Click To Tweet
Your brain is marinating in new data every day and compiling new connections to run faster and cleaner.
Why does this matter?
Because if you’re not charging more every 6 months then you’re overlooking your key commodity as a client-based business – your gray matter.
Your brain is becoming more precious with every new client, every new situation, and every drop of new data that it encounters – even when it fucks up and makes a mistake.
Mistakes = super valuable data. Don’t over-emotion it and disregard them.
Much like the price of Au, your cerebrum will always be valuable and our society is dependent on you charging equally for its experience.
Kick your emotions to the curb from now on and do this on auto-pilot every 6 months (put it in your calendar):
- Assess what happened in the past 6 months – did you achieve new and better results for your clients? Did you improve the success rate for your clients? Do you have more happy client testimonials? Did you get booked out?
- Yes to most of these? Then continue on.
- No? Then maybe it’s time to look at your services and see if maybe you could promise something different or see why your clients aren’t improving and find ways to fix that. Hold off on a price raise for another 3 months while you figure that out.
- Take a look at the year ahead – how many client spots do you have room for? Click here to figure out your perfect number here.
- If you want less clients, you’ll definitely have to bump your prices up to get the same income coming in.
- If you want to keep the same amount of clients and increase your income, then bump it up so that if you lost 25% of your clients you’d still be making a profit.
- Now figure out WHEN that price increase will be happening. You need to give your current clients at least a month to prepare (for courtesy reasons) or wait for your current contract to expire (talk to your lawyer on the latter).
- Draft up your client emails to let them know of the changes a-coming so that they can feel well-treated and in the loop (template below).
- Put your new price raise in your calendar and get all your back-end set-up for the change.
Template for your price raise:
Hey [client’s name/nickname],
I love working with you and wanted to give you a month’s lead on my upcoming global price increases/client load changes.
Here are the deets for us going forward:
[Outline how it effects this client’s work with you specifically and how it’ll look like going forward.]
- My rate is going from $35 per hour to $60/Due to family/life events I’ll only be taking on 2 client going forward and would love to offer you the opportunity to keep working together after.
- Our current contract will expire on Feb 20th and it’ll continue to be the $35/hour rate till it ends.
- The rate change comes into effect as of Feb 1st BUT as I’ve stated above it won’t for you till Feb 20th.
[Offer a special incentive or offer here.]
Because I prize our work together I wanted to let you know as early as possible and also offer you the opportunity to book one month of work at the current price with the renewal of your package.
I know this can bring up questions so I’ll be looking out for an email from you and respond speedily.
Situational awareness points:
- Clients have budgeted for your services so giving them time allows them to not panic financially.
- You need to make your current clients feel special (unless you’re cool with losing them) so offering a slight discount or special deal is a nice way of making them feel like they’re ‘winning’ in your relationship.
- Your clients have no idea what’s going on with you unless you tell them. If you’re giving them a deal, you need to let them know at the time not hold on to it till later and then expect them to be grateful.
- You can put your new prices into place right away with new clients but letting them in at the current rate is a good way to push them into action.
- Engineering an excellent client experience is your responsibility not the client’s. They’re following your lead.
Money makes everyone feel weird but…Your brain is a valuable commodity. Make sure to price it accordingly. Click To Tweet
Let’s get you 6 months of signed, sealed and delivered happy clients!
What’s stopping you from price raising?