We all worry about the consequences of raising our rates. We ask ourselves questions like, "Will my clients really believe I'm worth that much?" We ruminate over the potential consequences, "Will I lose business? Will my clients get an ROI if my price tag is that high?" Thoughts of a rate hike can lure the ugliest of our demons to the surface. So, instead of going through with it many consultants, coaches, publicists, and other service-based business owners suffer the financial and emotional consequences of under-charging.
Years ago, an entrepreneur contacted me to learn about my coaching services. By the end of the conversation, we both knew we were the perfect fit. She said she was ready to sign on the dotted line--and then she asked about my rates. When I told her about my package pricing she said, "Oh (long pause), I'd better think about this a little longer." Naturally, I never heard from her again.
It was then I realized that I didn't know my own value. My clients have always gotten amazing results from our work together. I have never had a client who did not excel, both personally and professionally. I found myself complaining, "I can help people make millions of dollars and find personal happiness, why can't I do it for myself?" What was I missing?
This prospect gave me the wake-up call I needed to find that missing piece of the puzzle. On that day I changed two things: I decided to believe in myself (yes, it can be that easy) and I doubled my rates and restructured my business model. Guess what? It took only three days to sign my first client at the increased rates; I had four new clients within two weeks. Do you know what I did then? I increased my rates by another 20 percent. No problem, clients kept coming in.
Since then I have helped countless entrepreneurs understand and accept their worth, and charge for it. Here's what I now know, with absolute certainty and clarity, that an increase in pricing will do for you.
1. Boost your confidence and self-worth.
Wait until you land that first client at your new and improved rates. And, wait until they thank you for everything you've done for them and tell you that it's the best investment they've ever made. Once you experience this level of success, your confidence will soar. You will understand your real value, and the stress of making such decisions will melt away.
2. Increase your prospect's confidence in you.
As that prospect spoke with me she gained complete confidence in my ability and process, but she left the call questioning her judgment and my value as a coach. Most people share the perspective that if someone can "get away with charging so much" they must be good. People want the best, and that's you. We all know you get what you pay for, so your fees need to reflect the many successes you have under your belt.
3. Clients are proud to work with the best, so they will spread the word.
I have a client who was charging far too little for his exceptional services until we began working together. With a totally revamped business model and new-found confidence, this client has developed a strong public image that positions him as the expert he is. Word spread fast, so his business is thriving. What changed? Really, just one thing: he changed his opinion of himself. He embraced his talent, experience, wisdom, and reputation. Everything else was comparatively easy.
4. It will push you and your clients to step up your game.
When a client invests in themselves, they will work hard to gain as much as they can from their investment. As your clients work harder, your success rate naturally increases. You will view yourself through a lens of confidence, which will inspire you to grow and stretch the boundaries. New ideas will form more easily and you will actually act upon them since your self-perception has improved.
5. You will reap the benefits of financial security.
It's obvious that your revenues will increase once you make this decision, but the other personal benefits are priceless. An increased level of financial security will reduce your stress level. With that, comes an increase in energy, creativity, and overall life satisfaction. You will be able to invest in yourself and your business in ways you may never have explored. The benefits of financial security seep into every crevasse of your life.
Will you increase your rates today?
Let's do this. Begin by exploring your competitor's pricing. Don't make the mistake of comparing yourself to others who offer less of a service or have less experience than you do. Set a price that's comfortable for you, and then push it further. Most of all, believe that you are worth it--because if you don't, no one else will.