No matter what business you are in, you will always have a competitor who charges less. Further there will always be people who come into the industry as newbies and charge lower prices. Candidly, they should charge less. Many times I see some who will buy into that premise and subject themselves to matching or coming close to the pricing of those who they should not be compared to in the first place. Let me talk about avoiding getting caught in that mess of comparison and actually raising your prices where you feel they should be.
You understand that when you first started that you might not have been worth what your top competitor in your area was worth. You didn’t compare to the top people, so charging the same would not have been a smart move. As you improved and found better skills, experience and training, you felt the difference. The problem today is that you may feel compared to the guy that just started and maybe has a nice looking website, but no experience, no training and no skills.
The struggle becomes real when we start to think about raising our prices. We know we are worth it, yet we fear being compared on that singular dynamic to those who do not compare on the many other dynamics that matter. We know we provide absolute value and have seen the improvement of what we deliver and how we deliver from the time we started. Most times the idea of raising our prices will somehow hurt us is only in our head.
Fact: Most of our clients have never bought what we sell (to the level which we sell it) before.
Fact: Our clients only have a snapshot of what we and our competition give them regarding pricing
Fact: People will buy value if they know what value is. Most of our clients know only the surface level of what we do, not the depth that we understand.
There are several different ways you can raise your pricing where your clients won’t even know let alone have concerns from your clients.
First, let’s assign a value to how much you could gain from raising your prices. If you look to the value of your bookings last year and simply pretend to raise the prices you got by 5%. Write down how much that would represent.
Only you know the value of what you are not charging and it is important that you work for what you are worth. It is important to focus more on how much you are not making rather then fearing the business you might lose (which you haven’t gotten in the first place). It is important to get what you see as your true value. Raising your prices will help you maintain a positive value of what you provide and avoid burnout.
There are many elements which go into raising your prices including the original marketing message which you send out, your competitive situation and much more. To find out more, check out one of the courses I created specifically for raising your pricing without your clients being concerned (I have packaged these together for a deal that you cannot afford to pass up- simply said if you raised your prices for one client, it would more than pay for the 5 courses)