You’d never say “no” if someone told you they could increase your revenue without making complex, sweeping changes to your business plan. So it’s time to get unstuck from the routine that has kept you from taking the simple, easy step that will make all the difference.
When was the last time you examined your fees?
I am working with a client who has a full time job and a side business. The money she makes from her side business goes into her vacation fund. I asked her what she charged and she said $35.
I asked her a few additional questions, which I encourage you to ask yourself as you read:
Q.When was the last time you examined your fees?
A. I’m not really sure.
Q.When was the last time you looked at what the market was charging?
Q. Have you considered that you may not be charging enough?
A. People tell me that all the time.
Q. How many years have you been doing this work?
A. 30 years.
By charging less than the going rate, you tell your customers you offer an inferior service
I told her that I use a service that she offers. Only they do less than what she does and they charge $100. I told her that my sister uses a service similar to what she does and they charge $75. By charging less than the going rate, you tell your customers that you offer an inferior service. Often you fear that by raising your rates, your customer will leave you. If you are still the most affordable at what you offer, why would they leave you? You are a trusted service provider. You have years of experience in your business.
Do the math
What would happen if you raised your rate to $50? It’s still way under the market rate but it’s a 43% increase. What if you raised your rate to $75? Do the math. Take your sales from last year. Number of customers times $35 in column 1. Now take the same number of customers and multiply it by $50 in column 2. For grins do the same for $75 in column 3. Your vacation fund is growing.
Get Creative With Your Price Increase
The leap from $35 to $75 is a big one. Reward your current customers by thanking them for their loyalty and letting them know you are raising your rates. Because they have been a loyal customer, their rate will increase from $35 to $50. You already have done the math to know what that will mean to you. Charge new customers $75. Get really good at explaining the value you add with your experience, references, and all the extras you do.
If you’re feeling stuck on ideas for how to gracefully and successfully implement your price increase, research strategies online or schedule a session with me to chat about it!
Barb Mason, Coach
I am a coach and jewelry designer. At UNSTUCK Coaching, I help middle-agers make changes toward the most fulfilling employment experience. As my own first coaching client, I know what it takes to get UNSTUCK.
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