You know it’s time.
Maybe it’s the frustration you feel when you look at your bank account. Or the brewing resentment when you get on the phone with your clients. Or the realization that you’re really, really good at what you do.
Whatever the reason, you know it’s time to raise your rates. But you’re a little nervous about actually making the change.
I hear you! Raising your rates can be scary. It brings up your fears that no one will hire you, you’ll go broke and you’ll have to crawl back to that job you couldn’t stand.
I promise you there’s an easier way. You can get paid what you deserve, and declaring your new rates doesn’t have to be so hard.
Today I’m going to walk you through the proven steps I use with my private clients to help them earn what they’re truly worth.
Let’s get to it. Here’s how to raise your prices, stress-free.
Step 1. 6 Signs You’re Ready to Make a Change
Here are some tell-tale signs it’s time to raise your prices, just in case you are on the fence about making this change. If you even resonate with just one of the signs below, it’s time to up what you charge!
1. You’ve just got a feeling it’s time to do it.
2. You’re feeling resentful about how demanding your clients are.
3. You’ve created solution-focused offers that people love and you feel great about.
4. You have a waiting list.
5. You’ve recently taken a killer training where you learned a ton and upped your game big-time.
6. Your clients tell you you’re not charging enough. (Hint: This is a HUGE wake-up call!)
Step 2. Picking the Price – How to Decide What to Charge
First, avoid the comparison game.
It’s likely you already have a general feel for the prices your competitors charge. However, in-depth research on everyone else’s rates will not help you find your perfect pricing. Instead, it’ll just make your head spin and get you stuck in the awful comparison game.
To find your perfect pricing, you have to focus on you and what you do best. I guarantee that the more you do this, the more you’ll differentiate yourself from the competition, eventually making them irrelevant!
Second, consider your customer’s perspective.
We can get in our own way when it comes to raising our prices. So start by thinking about your customer.
Ask yourself, “What is it worth to someone to have this _____ problem solved?” (After all, if you’re a regular reader here, you know that offers which solve clear problems are the ones that easily sell.)
What’s the first number that comes to mind?
My clients always have a number that immediately pops into their head. Then they start talking themselves out of it. Fifteen minutes later, after a discussion about providing killer results for clients (which leads to amazing testimonials, which leads to more clients . . .), they jump back to the number that first popped into their head. Save yourself the time and worry and go with what first came to you!
Third, ask yourself, “How can I kick it up a notch… or 10?”
I’m guessing that the first price that came into your mind made you a little bit nervous? That’s perfect!
The next thing I have my clients do is think about how they can “up their game” to make that price feel like a bargain.
To do this, ask yourself…
- How I can kick my services up a notch, providing phenomenal results to my clients?
- How can I provide such incredible service that they feel like that price, the one that made you a little uncomfortable, is actually a great deal?
Once you figure this out, you’re right on track.
Refine your offer, and finalize it with killer copy. Once my clients write the copy for their new offer, they find themselves totally convinced that their offer is fantastic and the price is perfect. That’s how we know we’ve struck gold.
Step 3: Tell Your Clients
To start, create a transition plan.
One of the big reasons entrepreneurs are afraid to raise their prices is they picture springing the higher prices on their current clients and watching those clients bolt. The it’s-really-that-simple way around that concern is to make a transition plan.
Consider these questions and map out exactly how you want to raise your prices. Sorting out these specifics makes everything easier!
- When will you start charging new clients this new price?
- When will current clients begin paying your new rate? (It’s okay if the dates are different for new versus current clients.)
- What date will you tell your current clients about the increase?
- What date will you post your new rates on your website? (I often advise clients to post their new client rates on their site at the same time they tell their current clients.)
- Will you give your current clients an opportunity to make a few final purchases at the old rate? If so, when will the deadline for that be?
Sorting through these details allows you to create a clear transition period for your clients, and it also offers an incentive for them to stick with you!
Then, execute your transition plan.
Now that you know what’s happening and in what order, it’s time to implement your plan. Notify clients, update your website and send friendly reminders to the clients you love most.
Your clients may be busy people just like you, so if you don’t hear back from a client after you’ve notified them, be sure to follow up!
That’s it! Now, You’re Earning What You’re Worth
Follow these steps to guarantee you make the shift with confidence, fairness, and most of all: class.
Let’s start a conversation!
What gets in the way of you raising your rates? Or if you already have, what approach did you use when the time came?
Share your thoughts in the comments below!
If you have questions about how to raise your rates or unique situations, post them here and I’ll help however I can.