Let's talk about how to change your pricing structure, strategy and when to do it… In other words, when to raise your fees!
One of the easiest ways to actually grow your business is through changing your pricing strategy and raising your fees. Charging more for the work than you're currently charging is going to have an immediate impact on how much you actually receive.
When to Raise Your Fees
Fair enough, but you may not know when to raise your fees. Let me give you a few quick tips here.
1. If You Get Clients Easily
First and foremost, if everybody is saying "yes" to you, and you're getting 80 to 95% of people saying yes to your services, chances are, you're undercharging. It is time to raise your fees. That's a first indicator that we often look at with our clients.
2. If You Get a Lot of No's
Secondly, and this one is going to surprise you - perhaps you're getting a lot of no's. Perhaps there's a lot of people that actually aren't saying "yes" to your services. That can feel really contradictory. A lot of people make the mistake when they're getting a lot of no's to actually put their fees lower.
But here's the thing. There's a real perception around how good you are and the quality of the services you provide based on your fees and your pricing.
What you probably aren't realizing is that charging low fees can often instill this idea in your prospects' mind that you're actually not that good at what you do. That you are not an expert. They don't have the confidence in you. Hence, they say no. Chances are they go elsewhere and they'll even pay more for the same services that you could have been providing.
3. If Your Business Model Isn't Working for You
Thirdly, how to know when to raise your fees is simply that your business model is not working for you. What do I mean by that?
One of the things we actually help our clients do is really analyze their business model. We actually create a mathematical model for them. We work out how much time it's taking them to serve their clients, how much time to develop their business, what they're charging, what their products and services are. Then we can quickly see where the areas are that need to be changed.
Here is How You Change It
You actually don't even need that financial model to get started.
Here's how you'll know if it's not working for you. If you just feel like you are working way too hard and you are not getting the results that you want in your bank account, it's probably time to look at your pricing and raise your fees.
Oftentimes, we'll look at that with our own clients and they'll say, "Oh my gosh. Now I'm worried about losing some clients if I raise my fees, Vanessa." If you need to free up some time because you're just working so hard and you don't have the time to really grow your business, then if you raise your fees and you even lose a percentage of your clients... The chances are you will still end up further ahead.
We run these models the whole time, and we can prove to our clients mathematically the number of clients that they can afford to actually lose at the new higher prices. They'll still be making more money and saving a lot of time as well.
"MY BUSINESS IS NOT GROWING FAST ENOUGH"
I’ve been exactly where you are. I know what it feels like when deep down inside you know you were destined for more but things aren’t going fast enough or you’re feeling stuck or frustrated.
Our clients frequently report doubling and tripling their incomes, reaching more people, creating greater freedom as well as thoroughly enjoying the journey of business and leadership growth.
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