It’s time to talk about the elephant in the room – your prices. Yes, I know it’s a sensitive topic, but if you’re small business owners and personal brands, we need to address it. Especially since we know you didn’t get into business to just have fun, you did it to make money and pay the bills. As a freelance designer, I’ve seen many small businesses and personal brands struggle with knowing when the right time is to raise the price their products or services.
But fear not my friends, I’m here to guide you through the murky waters of raising your prices.
So, let’s dive in!
Here are the top 3 signs that it’s time to raise your prices:
You’re Fully Booked
If your calendar is full and your clients keep coming back for more, it’s time to consider raising your prices. Your services are in demand, which means clients love what you offer, the price is a no brainer and they can’t stop talking about how great it is to work for you (aka you’re providing value to your clients). Don’t sell yourself short by keeping your prices low. The people who absolutely love you will stay or find a way to make it work. The people who can’t afford your new prices will undeniably shed a few tears, but will will ultimately understand.
Your Competitors Raised Their Prices
You don’t want to be the only one charging low prices while your competitors rake in the cash. It’s a dog eat dog world out there, and if your competitors are raising their prices, maybe you need to follow suit. Not in a creepy Hailey beber following imitating Selena Gomez type of way, but in a way that shows that you know your value and you’re keeping up. Competitors raising their rates can be a key indicator that the market is changing.
You’ve Gained More Expertise
If you’ve been in the game for a while and have gained more expertise, it’s time to reflect that in your prices. You’ve invested time and money into improving your skills, and you deserve to be compensated for it. We all are all to keenly aware that experts are able to come in and like virtual magic, are able to solve problems that most novices would take months to figure out. Your new found expertise will save your client hundreds of dollars and many many hours of headhead that they will be more than willing to pay.
Now that we’ve covered the “when” signs, let’s talk about the how.
Here are some tips on how to raise your prices (without scaring away your clients):
Gradually Increase Your Prices
Don’t shock your clients by increasing your prices overnight. (Although if you want to pull a Beyonce style price increase, by all means have fun!) Gradually increase your prices so that your clients have time to adjust.
For instance if you’re working with retainer clients you can give them a 3 month grace period where the new price will be reflected after you send the notice.
Highlight Your Value
Make sure your clients know the value of your services or products. Highlight the benefits and outcomes they’ll receive by working with you or using your products. Often people just look and the price tag and forget about why they reached you in the first place –to solve their burning problem. Remind them of how you’ll make that magic happen when they work with you.
Offer New Services or Products
If you’re raising your prices, offer new services or products to make up for the increase. Your clients will feel like they’re getting more value for their money.
Let’s Sum it Up
Raising your prices can be a scary thought, but it’s necessary for the growth of your business. By following these tips and embracing your inner Rihanna, you’ll be on your way to financial success in no time.
