Why Everybody Wins When You Raise Your Rates
Almost nothing strikes more fear into coaches, consultants, and holistic practitioners than the phrase, “raise your rates”.
I know that it can feel uncomfortable to raise your rates. However, it is also uncomfortable when you can’t pay your bills, can’t take care of your family or go to sleep every night trying to decide if you need to throw in the towel and go back to work. Which discomfort are you choosing to live with?
I see brilliant women all the time that struggle with pricing.
There’s a coach that I follow on Twitter and I love her messages and articles. She posted about a mastermind she was running, so of course I clicked the link to check it out. Her program was all about being bold and finding courage – good stuff right? Then I got to the price. Guess what she was charging?
$27/month! Not very bold or courageous in my book. I was totally thrown off and disinterested. I expected at least $500 – at the very least. Her sales page says the group will be small so people get 1:1 attention and that there will be all these life changing transformations. If I was really going to get that level transformation I would expect that it would cost me more than $27 a month. This was a great eye-opener for me about perceived value.
There are lots of people doing the low cost group thing, right now. I believe it hurts real group coaching. In order for it to be profitable for the coach, they have to have a good number of people sign up. Which means not a lot of real help other than a data dump of information. If they do keep it small, they get frustrated at the level of effort it takes to give so much focused attention, especially when they are not adequately compensated for it. They end up burnt out and doing a poor job serving the people that signed up. Bottom line: Nobody wins.
Something else that solopreneurs who attempt to use cheaper pricing as a means of attracting clients fail to overlook: what your real VIPs think about your low ball pricing. My Brilliant Business Girlfriend
Nicole Fende (The Numbers Whisperer
) and I were just talking about this the other day. She almost didn’t hire someone because her price didn’t match the quality of work she promised. Her work looked incredible, but her pricing was more in line with someone that didn’t have the skills or talent to pull it off. It made me think of those hustlers in New York City that sell fake handbags. The bags look good, but their pricing is so cheap you immediately become suspect of the quality and realness of what’s being offered to you. When you underprice your services, you are doing the same thing.
Why are you charging less than you are worth?
Here are the top 3 faulty thoughts my clients offer when we start talking about pricing strategy. I knock every one of them down through the SHIFT work we do so they can charge what they are worth and grow their wealth.
“I am new so, I need to charge less.”
Really? Whether you’ve done it for 1 person and gotten results or 100 people, the value of the results don’t change so why should your pricing. That’s all in your head and it’s your fear telling you that no one will pay what you are worth.
“Most of the people I talk to say they can’t afford it.”
Then you need to find a new audience to speak to – VIPs that are willing and able to invest in themselves or their business. You may also need to to do a better job of communicating the value of what you are offering. Instead of talking about how many sessions they get each month, or how many rewrites you offer – get straight to the point about the end results. Will they finally be able to pay off their debt after working with you or will they be able to create an opt-in offer so they can finally grow their list in 15 days (shameless plug), then tell them that and stick to your prices.
“I am afraid I will lose the sale.”
What you really mean is, “I am afraid they won’t think I am worth it.” This line of thinking has nothing to do with your VIPs, and everything to do with how you see yourself. You would hate working for a company that underpaid you – so why are you underpaying yourself. To borrow the words from that Somali pirate in Captain Phillips, “You are the boss now.” Go look in the mirror and tell that to whoever is looking back at you and then make sure they raise your rates.
If you are constantly undercharging, you will always be serving from a place of anxiety and lack. That’s no way to build a healthy relationship with clients, or build a sustainable business. When you are earn what you are worth, you are free to serve your clients from a place of abundance and prosperity. And that’s a WIN/WIN.
I made a decision this year that I will not let price be the determining factor for working with me. I want people to say gotta have it, not- it’s so cheap I guess I’ll give it a try. My brilliance is worth more. And so is yours. So raise your rates and stop selling yourself short.