Price increases can make small business owners squirm. You don’t want to have to ask for more… It's just that it isn’t worth doing at that price. You can often have the thoughts, "What if people leave a bad review or hate me," "I’m too nervous, I will make it work somehow."
If you do have a yearly strategy to increase prices, well done. If not, you are in the majority and this is for you. I hope this will be clear and make the process one you eventually approach with confidence.
Why you need to increase your prices:
Your costs increase yearly. Especially in years of higher than average inflation. Some of your costs have increased 5-45% in the past 12 months alone. Yet often your pricing hasn’t changed in years…
It communicates value to your client. If you deliver value, people want to pay for it. Sometimes undercharging tells the market you aren’t good at what you do. In reality you are just a nice person.
You improved. You got better and deliver more value. That value is worth something. Increase those prices.
How?
Look over all offers, rates and packages. Update them. Some businesses send out emails with packages that are out of date. Your offer has improved, your packages have improved. Update them. Rename them for new clients if needed.
Check out the competition - this shouldn’t determine your price but it should inform you on the marketplace.
Trial a new price structure. This can be done through creating a new service/package, or by informing your clients that one service has had a price increase. Update social media and websites or anywhere pricing is advertised.
Be clear and open about it with your clients. If you have an amazing legacy client or two, you can offer them a legacy deal.
If you have offered a fix price for a certain service you will need to hold to that price for those clients. I would advise that if they want parts of the new service you can come to a deal with them individually. This is a good time to get a referral or two.
Most importantly, you have to believe in the value you provide. If you don’t, your clients certainly wont.
Try out these tips and let us know how you go! If you need assistance putting them in place, we are here to help!
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