Do you want to increase prices in your business?
In my 20-plus years of sales experience, I have seen so many entrepreneurs make mistakes when pricing their services.
Honestly, it’s probably one of the most difficult things that entrepreneurs have to deal with. How can they price their products and services in a way that actually nets them some money, but where people are willing to pay the prices?
Customers and clients are frequently looking for ways to save money, but with the right pricing formula, you can actually earn the right to charge prices that you desire (and deserve).
It comes down to one thing… VALUE!
You must be providing your clients value.
Clients hire you to get exceptional results!
It doesn’t matter if you’re a coach, you manage social media, or you’re a service based provider, results matter. And, you can only increase prices and demand premium pricing when you are consistently earning those exceptional results for your clients.
For me, I just completed an 8-week sales course for CPAs and other accounting professionals around the country. My goal for these individuals was all around them getting results which reflected in increased revenue!
One of the boundaries that I put into place was that each person HAD to attend every class. There’s no way for me to work or help anyone if they choose not to attend every class. When I say attend every class, I mean that you’re there on time, you don’t leave early and you complete all of the weekly homework.
This requires a committed person, and that’s what I was looking for.
I know that you’re not going to get results if you don’t put the work and effort in, which is why I required 100% attendance and dedicated work.
In the end, we were able to train the accountants and CPAs, so that they were able to increase prices and their revenue by an additional $150,000 as a group within that 8-week period.
Now, that’s what I call amazing results! My training and their dedication is what led to that type of success.
Going forward, now that I’ve shown I can help clients get MASSIVE results, I can demand a premium price. I can guarantee that I’m going to deliver the results that they crave.
It’s so so important to remember that the results that each of your clients or customers get, helps lead you to being eligible to ask for those higher prices.
If you aren’t proving your work to your clients and then you decide to increase prices, you’re going to have clients leaving you. Stop that before it happens and give your clients value from the very beginning!
Stack Your Wins
People often wonder how in the world they can show value when they’re first starting out, and don’t have results to prove their worth.
It’s simple, keep your prices aligned with what the industry standard is, and as you are able to stack your wins and prove your incredible results then you can raise, raise, RAISE those rates.
My guest on Success Unfiltered, Rachel Pedersen, experienced this when she was first starting out. A potential client had reached out to her to have Rachel manage their social media. She presented them a proposal for $1,200 / month in fees, but when offered that price the prospect said she was thinking more around $600 / month in fees.
Rachel was shattered. She knew that the potential client didn’t value Rachel’s worth, but Rachel still agreed to the $600 / month in fees.
She was only able to do that because she built up her self-esteem and stacked her wins.
She took everything she did for this client, all the good work she’d done and used it as proof of her skills when she approached other clients about work with increased fees.
This particular client may not have believed in Rachel, but it taught Rachel a very important lesson, you cannot convince someone of your worth if you don’t believe it first.
Now, Rachel charges $1,000 per HOUR for her services.
She’s done the work, believes in herself and is able to have that come across to each and every potential client she meets.
Build Your Own Momentum
Have you ever experienced a lack of momentum?
When you receive a NO on a proposal, simply because your prices are too high, it can leave you feeling undervalued and like you’re not worth what you charge. However, if you’re doing good work and you can easily stack the wins you’ve had for clients, it’s time to build momentum, and shut that negative little voice in your head up.
Here’s how Rachel did it after being fired from a huge client, a client whose income went from $4k a month in revenue to $180K a month in revenue!
It was the worst feeling in the world for Rachel, but she wanted to build that momentum back up. She did everything she could to get to the point where she was BEFORE the client left her. She started hopping on podcasts, reaching out to clients, asking for referrals, getting visible, stacking more of her wins.
Rachel decided right then and there that she was going to get the momentum back, even if she didn’t feel like it in the moment.
It’s all about taking action, like Mel Robbins says, “5-4-3-2-1… DO IT!”
If we only do the things we’re supposed to do on the days we feel like it, we’re only going to be working two thirds of the time.
After a huge NO or rejection, turn to music, let it lift you up and get your head back in the game. Rachel loves music “because it’s someone else’s soundtrack that you can use to replace your own inner dialogue in your head.”
Such good stuff!
In Conclusion
Every NO is a journey to YES, so it doesn’t matter how many NO’s you’ve received.
If you continue to do amazing work, provide your clients with exceptional results, and stack those wins, you’ll be able to increase prices to premium rates before you know it!
Like Rachel said, take action TODAY! What is one thing that’s been on your mind that you can do immediately to start building that momentum?
