25 Reasons You Should Raise Your Prices

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by on January 9, 2016

25 Reasons you should raise your prices

25 Reasons You Should Raise Your Prices

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25 Reasons you should raise your prices

I truly believe we have an opportunity to offer a better experience to our customers and clients when we charge more – to a degree. Many people in digital marketing are under-charging, especially small agencies and freelancers. So for those who haven’t had the confidence, perhaps some of these will help you; “25 Reasons You Should Raise Your Prices.”

 

1. Price high, and justify.

Expectations are created by pricing and you should match those, but you can’t justify high prices unless you have the time and capital to do that first. You can always deliver more value than someone is paying for, but you should also ask for more and then make it worth it for your clients (exceed the expected value there as well.)

2. You can bundle in more items that people want and need.

Whether you’re a digital marketer or a golf caddy, there’s something else you’ve thought of offering your customers but didn’t feel like it would be worth it at the price you’re selling your product or services now. What if your prices were 30% higher? What could you bundle in with your current offering?

3. You don’t have to charge by the hour.

Sometimes our ideas on pricing are more arbitrary than we realize it. When I switched to the one-concept approach for designing, I thought clients would be expecting more than one. As it turns out, people outside of the web design industry don’t get that many people have done it that way for a long time. By doing the work before it get’s to them, and bringing them one more polished solution I wasn’t going against any expectations for most people – as I was the one more aware of the old ideas in the industry. Your ideas on pricing might be the same.

4. You have changed significantly since you set your current prices, label it differently now.

If you always offered web design services, or psychotherapy or whatever you do – perhaps you’re new offering is web strategy and implementation. Perhaps you’re in a new segment now. If you’ve grown your skillset and your experiences are twice as many now – Perhaps your prices should be double what they are currently.

5. It’s not unusual for professionals to raise their prices regularly.

6. People expect price increases.

7. Your operating costs have increased in the past year.

Advertising, and the price of acquiring a customer have to be built into your rate for you to sustain a business for any significant length of time.

8. Your price isn’t really equal to the value you are now providing.

Let me ask you– How many things have you learned about your industry and the work you do on a day to day basis? If it’s not many, let me encourage you to step up your game. But if you’re driven, the answer is likely, ‘a lot.’ This equals increased value over time. If you’re in web design or web marketing if your ability to implement on a web strategy is making more money for customers, the new value of your strategic delivery of services justifies a price increase.

9. Supply and Demand- You’re super busy.

This is a matter of finding the sweet spot. If you have no clients, don’t sell your soul for $100, but definitely find a lower place until you can build a pricing position that keeps you busy but doesn’t overload you so you’re not doing the highest possible quality of work. If you’re incredibly busy, it likely means you’re doing amazing work; another reason to raise your prices.

10. You need to hire.

11. You want to do more high quality work, but less of it. 

Perhaps raising your prices, is going to be the main reason you’ll be able to do even more amazing work.

12. You realize you want to work for more amazing clients.

Raising prices might be the key reason you’ll get those dream clients. Some new professional‘s think they need to lower their prices for dream clients. I say ‘raise your prices dream clients,’ it might be the only way they take you seriously.

13. People appreciate things more when they pay more.

Have you ever cut your price in half before for someone you knew in an effort to be nice, and then you find they’re needy, don’t respect you, and the project goes off badly? This quote sums up the reason this doesn’t usually go how we want it to;

“What we obtain too cheaply we esteem too little” - Thomas Paine Click To Tweet

14. Clients are also way more committed to the project when they pay more.

I’ve found that when I don’t price as high as I should, that people don’t get back to me and seem to be flakier. I’m not 100% sure if this has to do with the caliber of professionals I’m doing the work for, or if this principle just applies all across the board – people don’t care about a project they didn’t pay enough for. If it doesn’t go well, the down-side is not as bad.

15. You know that you can give significantly more value if you can only charge more.

16. You’ll be less rushed. 

When you raise your prices you don’t have to take on as many clients and can focus more on the project at hand; giving you alot more time to make the fewer projects amazing.

17. Perception of the quality of product or services are influenced by the price.

People literally feel differently about things differently if they pay more for them. It’s a strange trick of human psychology.

18. You can develop a stronger story around the product, explain the value in a way that better showcases the benefit to the buyer.

You may be selling the exact same thing, but if instead of saying “This is what we do, and why you should care,” and start saying “This is why this service matters to you, we’re going to get you this specific result and how you’ll feel after we successfully implement,” people will be looking at it totally differently. What customers are you going to get them? How will people look at their company when they have a more professional website? Or how will whatever your service is make them feel, position them among their peers, or what will they get/feel/look/be treated when you’re done.

19. You’ve paired your existing product or service with a bonus incentive for the price rise. 

Our original service + shiny new amazing value-add, packaged up and presented in a visual, visceral way that anyone can understand. If you demonstrate what the new piece of value is in a way they can understand as a bonus, a higher price will make obvious sense.

20. You’re saving them time or effort.

You have an aspect of convenience that they can’t get from the competitors. A guaranteed less than 4 hours of their time before the process is done, the rest simply and unobtrusively handled by you. Perhaps you have a 1.2 multiplier added for rush jobs. I think this makes serious sense and it is not unusual in other industries.

21. You have a one-of-a-kind, game-changing feature that none of your competitors are even aware their missing, or are unable to offer.

An amazing book about market positioning called “Blue Ocean Strategy” gives an example of a chain of movie theaters in Europe that offered child care while the parents watched the movie. This put them in a totally different market than the other theaters, and it reaped the benefits; new features like this are hard to follow, and if someone does copy you, you’re already on to the next innovation.

22. You are using the rise in prices to further guarantee quality. 

23. People are expecting to pay more than you’ve been charging anyway.

24. You can’t produce anymore physically, than you are producing right now.

25. You’re pricing completely based on value now.

Here’s a couple videos that talk about that strategy:

Nothing is better than pricing as high as you ever have, and then getting to make the most amazing work of your life. Don’t raise your prices if you don’t plan on doing that.


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