1. Do Some Research
First, I would recommend doing some research to understand the current market value of your service. Ask yourself if you have the experience and background to justify raising your price. Then I would examine your firmly held beliefs about money and see how those thoughts are impacting your current choices. Value correlation exists between the actual value of the service and your story about it. – Lori Darley, Conscious Leaders LLC
2. Consider Whether You Have Price Resistance
If you are not encountering much price resistance, it could be time to raise your prices. Of course, there’s always a chance you’ll raise them too much. It’s an evolving process. You’ll know if you’ve gone too far if a) your close ratio has diminished substantially, b) you’re suddenly getting unexpected price resistance from your ideal clients, and/or c) you feel a pit in your stomach. – Laura M. Labovich, The Career Strategy Group
3. Understand The Real Motivation Behind Raising Your Prices
It’s useful to understand why you want to raise your prices before you raise them. Is it to attract a different level of customer? To improve your own financials? Or something else? When you know the real driver, it will help you take the necessary actions to raise your prices with integrity and purpose. –Lea Woodward, Virtual COO
4. Be Bold
I have raised prices on four occasions over the past decade. Each time I was nervous. Each time we attracted new customers. And as a result of our new prices, we had revenue to deliver more value. We base our prices on what is required to operate the business according to our values. Price according to what you need to do the job brilliantly while maintaining profitability. – Corey Blake, Round Table Companies
5. Drive Away Those Who Don’t Value Your Work
When you raise the prices of your service or product, you are “trying” to drive away those who do not value you and your work. That’s the goal! Raising prices isn’t just to profit more, but to work more deliberately with the people who value you and are entirely committed to your shared goals. So, drive away the ones who don’t value your work enough. You want fewer but better clients. – Dave Ursillo,The Literati Writers
6. Think About The Story Your Prices Are Telling
Raising prices may drive some customers away, but it can also price in others. Consider: why do some people choose a $1 cup of gas station coffee, while others insist on spending $8 at a local cafe? It’s because price is part of how your business communicates who it’s for, who it’s not for, and how you’re positioned in the market. The real question is: What story do you want your prices to tell? – Breanne Dyck, MNIB Consulting Inc.
7. Raise It Bit By Bit
Raising your prices incrementally eliminates the potential for sticker shock. If your closing rate is higher than 80%, you’re leaving money on the table, and it’s time for another incremental bump. You know you’re sitting at an ideal price point from a customer perspective when your close rate fluctuates between 60% and 80%. – Virginia Franco, Virginia Franco Resumes
8. Know What The Work Is Worth To You
The one thing you need to ask yourself is: Am I going to feel good about the work at that price? If you are going to resent performing the work at your current fees, then you have to be prepared to lose some work to establish a new price point. It all comes down to what you think you are worth and the trade-off between price and volume. – Michelle Tillis Lederman, Executive Essentials
9. Improve The Perceived Value
When you’re selling, the perceived value is what the customer expects to pay while the price is what they actually pay. The key to successfully raising your prices is to simply raise the perceived value. Tell a better story. Help the customer better understand how you’ll solve their problem. Better explain why you’re the best solution. Improve the perceived value, and increasing the price is easy. – Pat Rigsby,PatRigsby.com
10. Know Who You Want To Attract
I advise my clients to raise their prices based on who they want to attract. Are you positioning your products as mass market or niched? Then, gather data by comparing the value of what you offer against your top three competitors to see where you stand. Consistently increase your prices every year by taking inventory of your current costs and marking up your products using a standard multiplier. – Terra Bohlmann, BrightBound
11. Know Your Numbers
Any pricing increases need to be strategic and numbers-driven. Start by looking at your target market, current price points to analyze margins, most/least profitable items, and how you stack up against your key competitors. Once you have those insights, develop financial projections based on how you think any increases will impact sales (both positive and negative). Adjust as necessary. – Shawn Graham, Deep Varnish
12. Make The Value Obvious
Vet your product or service to make sure the value is obvious. Do your marketing materials or pitch explain what problems your product will solve? Do you explain how your customer will feel once they’ve purchased your product? If you can prove you can solve their pain, your pricing will not be an issue. – Barbara Safani, Career Solvers
Raising prices may sound attractive, and sometimes it’s necessary, but remember that there are risks involved that need to be mitigated. I always advocate for asking questions and self-reflecting. Make sure you do that before you solidify any higher price points in the future.
