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raising prices

I am not from the school of thought that believes in raising prices often. Yes, I am a coach and yes, I have raised my prices over time, but raising them was not my first response to making more money. I believe it is what you keep- not what you make- that matters. This means that if you can have good margins at lower prices, that should be a consideration in your formula. Here are a few reasons, however, that you should consider raising your prices as a response to market changes.

raising prices

 

 

 

Raising Prices

 

  1. Your margins have gone down, and your expenses have increased.

 

It is expected that increased expenses should be passed onto the customer and client. If your costs have increased, your prices may have to increase to match. Sometimes costs go up temporarily, for example,  gas prices in the summer, but if there are permanent price increases from your suppliers and service providers, you have to increase proportionally to stay in business. This can be a tough thing for businesses to do. Alternatively, look for lower pricing in your costs.

 

 

 

  1. Your financial goals require a price increase.

If you are at maximum capacity and availability in your products and services, the only way to make more money is to increase your prices. For example, if you coach 20 hours a week, and that is your maximum availability, the increase from $100.00 an hour to $200 an hour is the only way you can make more. This increase needs to be attached to a goal, and you can do the math to figure out how much you need to go up. I’m not necessarily a fan of a 100% price increase, as I used in this example, but I AM a fan of increasing to meet your financial goals.

 

 

  1. Your expertise and value in the market demand it.

 

Finally, sometimes you have to raise your prices because your value demands it. If you have a waiting list for your products and services and cannot keep up with demand, raise your prices. As your expertise grows and you are able to perform at a higher level, your value in the marketplace also increases. Raising your prices to match your increased value is important to keep up with demand.

 

 

AUTHOR’S NOTES:

 

Raising prices can feel scary. But it is a necessary step for maintaining margin, making more, and addressing your market value. Happy Entrepreneuring!

Define

 Defining Offers Your Audience Will Crave

One of the services people seek from me is defining offers that are strategic and are profitable.  My first step is to learn all I can about my client’s business and how they currently serve their clients. We then discuss how they are feeling about their business.

 

I’ve had clients come to me ready to pivot, ready to stop doing what they have been doing up to that point.  Truly loving what you do is critical to long-term success in business.

 

Shocked Client

 

 

STEPS IN DEFINING OFFERS

There are many approaches to defining offers that clients are excited to buy.  One is to first define your “Ideal Client Avatar” or ICA.

 

My approach is a little different. I first want to know why people would come to YOU for what you do.

 

What is your unique perspective, method, approach? If someone is shopping for what it is you do and sell, and all other things being equal, what do you think the deciding factor would be for the client to choose you? Have you ever answered that question before? 

 

Secondly, the next step is to ask where the client is in their journey with your current offers.

 

Do they need to really know you to work with you or can they align quickly with your results? One way to explain this is, do they need to commit 3-6 months to work with you, or can they get you for an hour or two? Or do you have an “entry-level” thing to sell? or are you currently only a long-term commitment? 

 

Guess what, all approaches are fine. You just need to recognize where the client has to be to take advantage of your offer.

 

Thirdly,  ask what levels of results do you want to offer? I want my clients to go from A-B, C-D, and E-H. Maybe you just have one result. But know what it is.

 

Lastly, define where you want to serve new clients in your world. For some people, they want to serve on a recurring basis, like in a membership or subscription.

 

 

 

TAKEAWAY:

 

However, some have more of a stair-step approach. Some serve new people with free masterclasses for several days before making any paid offer. Again, it is about your results and how you get them.

 

 

A NOTE FROM THE AUTHOR

There is no one right way to create and sell your offers, and I don’t believe that everyone should have a certain number of offers available. I have paid courses, workshops, group and 1:1 programs, and a book, and then free resources, masterclasses, and a podcast. Plus, this blog. But this isn’t the right mix for everyone and every business. These offers are what work for my clients along a spectrum of needs and desired results and feels really good for me to offer and serve. 

 

I recommend that you approach your current offers through this process and evaluate what you can offer to fill any service and results gaps in your current programs. One other thing to do is to ask people if there is anything you should be offering differently. That question actually created a 12-week program because the 6-week profit accelerator felt too rushed for one of my clients. Don’t be afraid to ask your audience how you can serve!