Do you know that you need to increase your prices but you’re not sure how to do that? Or maybe you’re worried that your clients will get upset and people will stop buying from you?
You are not alone.
Back when I first started in business I was really, really excited to work with anybody.
It didn’t matter that they were paying me only a fraction of what I was worth.
I was grateful to have clients.
And…lucky for me because we were charging so low and doing such good work, we had an endless supply of leads and new business.
The business grew exponentially through word of mouth referrals which word have been great except that all of our clients knew our prices and expected to pay our decreased rates.
It made increasing our pricing really difficult.
I knew to sustain the business, we’d have to increase our prices but…
To be honest, I was terrified of upsetting our clients and having to justify a higher price on sales calls.
Undercharging is a trap that most early entrepreneurs fall into.
It can be really scary to increase your prices.
No one ever really wants to hear the word “no.”
I spent YEARS undercharging and I was a really grateful for all of our clients.
But it just wasn’t working.
I didn’t have the profit margins to really be sustainable without me putting in a lot of hours all the time.
Luck for me, I had a good friend of mine who changed my life.
I’m going to share with you what she shared with me.
She said, “Bridget, do you think you’re the best at what you do?”
“Of course. I am the best at what I do. My team is amazing, I know that what we do is awesome and we provide a much better service than a lot of these other people do.” I replied.
“Well then, why wouldn’t you charge more?” she asked.
That question caused me to really sit and think. At first, I couldn’t really figure it out.
What was it that was really holding me back from being able to charge more for my services?
If you know that you need to charge more, but you’re not doing it, I’m gonna ask you the same question.
What is holding you back?
What is the worst thing that is going to happen if you increase your prices?
The worst thing that can happen is that someone will say “No.”
Ultimately, that’s what I was afraid of.
That small little word was what was holding me back from increasing my prices and that may be what’s holding you back from increasing your prices as well.
She continued on and she asked, “If you doubled your prices right now, how many of your clients would you keep?”
I thought about it for a moment, then I said, “We’d probably keep about half…”
That’s when it dawned on me…
We would make the same amount of money for half the work.
If we doubled our prices and half of our people left, that would actually make things BETTER in a big way.
It was a big eye-opener to me. So I did it. I took that step in faith.
My mentor told me to do three things.
Step One: Decide exactly how much money you want to make in a year.
Maybe it’s $200,000…
Maybe it’s one million…
Whatever it is – WRITE IT DOWN.
Step Two: Decide exactly how many hours you want to work per week.
Let’s say you want to work 20 hours a week and you want to make $100,000 a year (which is very, very doable by the way), you’ll have to figure out exactly how much you would have to charge per hour to be able to work 20 hours a week and make $100,000 a year.
It’s all about finding your NEW hourly rate.
Your new hourly rate is going to guide a lot of your pricing. You have to uncover that exact amount that you need to be charging to meet your income goals for the year.
Step Three: Build the boundaries where you can comfortably, but firmly tell people “No.” if they try to negotiate your prices.
Make sure that you have those boundaries in place so that you are holding firm, and not ever going back or decreasing those prices.
When you have been charging the same amount for a long time, your customers might give some pushback about the increase.
If people start giving you some pushback about not wanting to pay more, you need a script to follow so plan what you’re going to say in advance.
That way you’re not caught off guard.
If it’s something that you’re really uncomfortable doing, then I would suggest you hire someone to have those conversations for you.
If you learn how to follow these three steps, then everything is going to change in your business.
But I understand it can be a little daunting to get started…
I remember thinking, What do I do?
So I asked her that same question and she replied…
Just do it.
I had a sales call that was actually later that day and I decided that I was going to quote a higher price.
I had a lot of sales calls coming up. We had a full client load so it wasn’t a big deal if they said no. On the call, I quoted triple what he had been charging and without blinking an eye, this person said yes and paid on the spot.
This happened three times in a row.
In that week, I tripled my prices and I sold three packages back-to-back.
I made more money in that one week than I had made in an entire month before. It was so crazy to me that I just kind of walked around my house thinking, “Wow, it was this easy the entire time?”
I want to tell you that it is this easy. It is this easy if you know that you are good at what you do, and you can provide the value in exchange for that money.
If you are making a tremendous jump in price, then you may have to do some rebranding so that people understand that you are worth that value.
We talk about exactly how to do that in our free 10 Day S100K Challenge.
If you do not increase your prices and you continue to undercharge, eventually you’re going to become so frustrated and so resentful of your business that you’ll want to quit.
You might even spend a lot of time wondering what you’re doing wrong.
When I increased my prices, we were able to provide a much, much higher level of service and you’ll be able to do the same thing, too.
Charging your worth is key to building the business that you want.
If you want to make your next 12 months your best 12 months in business EVER but you’re not exactly sure where to start, register for our FREE 5 Day Business Bootcamp.
Inside the challenge, I’ll break down the most important steps you need to take to completely transform your business.
I’ll teach you how to implement a simple 3 step formula to set yourself apart from your competition and draw your ideal clients to you like a magnet.
Plus, you’ll discover the secrets to confidence, clarity, and courage so you can get more clients at double (or even triple) the price without a huge list, a fancy funnel, or a social media following.