Do you get the feeling that you are charging too low? Chances are, you might be overdue for a price increase. Certified business coach and strategist Faye Cornhill shares 5 signs to know when it’s time to put your prices up.
I want to talk to you about the signs you’re seeing that indicate it’s time to put your prices up. I want to start by reminding you that your business is your business. And as the CEO of your business, you need to have the autonomy to raise your rates as and when you see fit. However, I think there are five signs that something needs to change and I want to share these with you.
Before you ask, it’s not a case of “tick test 5 boxes and it’s time”. Be sensible, be pragmatic, but also trust your instinct.
Sign # 1: You’re getting bookings.
The first sign is that you actually have bookings. If this isn’t you then I wouldn’t necessarily be recommending that now is the time. It could be, but possibly not. But I’m not saying that you need to be inundated with bookings.
Being fully booked isn’t the only time to raise your rates. The first time I raised my wedding photography prices was when I reached 30 weddings per year. I know that some people do more, some people do less, but that felt like a mega year for me and I knew I must have been doing something right to get to that number.
And before you even mention it, yes, it’s terrifying—like full, cold sweat inducing. And I get that, I really do. Every single time I put my prices up, I’ve felt some sort of physiological effect. In the early days, it was more of a blood-draining type feeling when I pressed “save” to reveal my new prices on my website. These days, it’s more of a very deep breath and a quick prayer to the universe. It gets easier, basically.
Sign # 2: Clients or colleagues are telling you that you’re too cheap.
This requires a two-part explanation, here’s part one: If your friends and colleagues, especially those with experience in your industry and those you trust and respect, are ringing alarm bells about your pricing, then, for goodness sake, listen and take on board their feedback.
The second part is when clients say you’re cheap. Now, they might not just blurt it out but there are certain behaviors that accompany this belief. This can include booking you on the spot. Of course, this can be linked to the fact they that just love you but if it happens time and time again, it could be because they don’t want to let you and your low prices get away.
Ask yourself if your pricing is actually in line with your brand. Your price isn’t just the final product, it’s your time, your profit, your experience, your training, and every other little ounce of you that you give to your clients.
Sign # 3: You feel out of alignment with your clients.
When it comes to raising my prices, a really big indicator for me is when I feel like I’m in a different energy wavelength than my clients. The things they seem to like and value are not the same with mine. Now, that’s not always a price issue, but in my experience of working in such a visual industry, it quite often is.
I had experiences wherein I was charging way too less, massively over delivering in every way and still having a lukewarm relationship with some clients—not a good energetic match for me at all. On the flip side, when I work with clients now who highly value me, my work, and my time, the relationship is unbelievable—like we were meant for each other.
I know when my ideal client steps into my life and it’s not necessarily one who whips out their purses straightaway and declares “take my money.” I want someone who is energetically aligned.
A sure-fire way to know when someone isn’t my ideal client is when one of the first things they ask is “Do you offer discounts?” This is because they aren’t seeking to find the value of my proposition. This isn’t a relationship I desire in my business.
Sign # 4: Your clients love you.
Are you getting amazing reviews? Do your clients absolutely love you and what you’ve done for them? Are they telling everyone about what you do and encouraging them to book you? If so, this means you’ve got great results for your clients. And part of that result will be in relation to the value of money they invested. If this is you, then I really do believe that it’s a sign you’re ready to raise your rates.
Sign # 5: You want to make more money.
Okay, this one is not rocket science. It’s pretty simple, in fact. If you want to make more money, you need to raise your rates because you can’t clone yourself or make more hours in the day.
I’m pretty sure you’re not the sort to charge excessively deliver bog standard work. I know it’s just not your thing. So deep down, I want you to start trusting your instinct on when is the right time to make a change to your pricing.
Start Today. Make A Change
It’s never the right time. You’re never going to feel 100 percent sure. You’re going to feel scared. And I’m here today to tell you that this is okay.
Everything is temporary. You’ll change, you’ll grow, and before long, the prices that you’re fretting over will become too cheap. This year can absolutely be your best year in business.
Trust yourself, you’re ready.
Edits: Kath C. Eustaquio-Derla | Image Credit: Faye Cornhill
This article was first published in the Faye Cornhill Coaching website.