Yesterday I spoke about the 8 reasons why you MUST raise your prices. These are the reasons why you absolutely positively have to raise your prices.
Sometimes, you don’t HAVE to raise your prices, but you SHOULD raise them anyway!
(1) When your customers are really, really happy (say what?)…
When your customers are super happy with your service and more receptive to a price rise. Just after a big win or a new launch. When you have a bucketful of super happy clients – you can start to charge more. If you have a super loyal fan base that love everything you deliver, they buy everything you have on offer and they constantly tell you what an amazing job you are doing – then you are probably over-delivering, undercharging and it’s time to raise your prices.
(2) As demand for your services grows
As your skills and reputation grow and demand for your services increases you can start to charge more.
Think ALDI – TESCO > WAITROSE > HARRODS – they sell very similar products but at substantially different prices.
Consider Gary V, Tony Robbins or Marie Forleo. When they first started out in business they could charge rates in the $hundreds but now after years of investing their time and effort to become thought leaders in their fields – they can charge day rates in the $thousands or $tens of thousands and people readily pay them!
When you become known for being the thought leader or go-to expert in your field and your services are in demand. Don’t sell your Lamborghini at a Ford price!!
(3) When you want to target a different market
You could charge a substantial amount more to a corporate business than you would for a local business for fundamentally the same knowledge or service although you would probably have to develop a much more substantial package!
(4) When your customers tell you that you are too cheap
It happens! Unless it is your strategy – don’t be known for being the cheapest in your field. Be known for being the best. You know you are too cheap when your customers tell you so, or they accept your prices too quickly.
(5) When you need to price out a customer
When you are trying to price out a client that you don’t like! You don’t enjoy working for them, so raise your prices. Think of this as hazard pay! Or compensation for having to deal with their chaos! You are over-delivering. The client is still complaining. So you work harder to please the person who will never be satisfied. Raise your prices. 9/10 out of 10 they will leave but if they stay, at least you’ll feel less begrudged looking after them!
(6) When it feels right
When it feels right – you know you have upped your game and it’s time to up those prices. Sometimes you just know!