How to Raise Your Prices Without Losing Business?
  • Business
  • Posted by: admin
  • April 19, 2011

Do you start sweating at thinking of elevating your prices?  Telling your trustworthy clients that you are going to start charging those more for the service that you provide is a big issue for you. The biggest fear that you face is that all customers will walk away if you add a very small increase to your current prices. In reality, these questions of self-doubt are only hypothesis.

So let us talk about something that many people do not like talking about: to increase your charges. Increase your rate is a way to increase your business revenue is often difficult for people to cope, and there are many reasons. If you feel that you are doing an excellent job to develop the skills and become the hottest property that it is not necessary to wait for your boss to notice. There may be an increase, and if your client’s gets agree with your assessment, you will get it.

With that in mind, here are five simple tactics to help you elevate your rates and earn more – without losing your clients.

1. Prove the Value of Your Service: There is no greater tool for selling services than proof. If you can prove the value and the results that you have delivered to previous clients, then your service will sell itself regardless of price.

How can you display your past performance in a convincing way? Harness the power of numbers and testimonials. People like things are tangible. Can you get a customer to say how much money is earned through their website last year? Can you get a witness video of 30 seconds or two?

2. Warn customers in advance: Clients do not react gently to a surprise rate increase. Diminish the blow by offering plenty of advance warnings. Dividing the increase into several smaller increases over time may be easier for your clients to accept rather than one massive spike in price.

3. Schedule Your Rate Increases: If you are not sure how to begin to charge more, then simply set a rate you are contented with and a plan to increase after a certain number of customers.

For example, it could look like the following:

1. First five clients – $30/hr
2. Next five clients –  $50/hr
3. Next five clients –  $70/hr

If you make these incremental changes as a part of your business strategy, then, price hiking will become a natural part of your business. It also makes it easier to explain to customers if you choose to do so.

4. Increase your skills: The most evident technique to start: simply get better at what you do. Learn new techniques, build up unique methods of working, and purify your style. More striking work justifies more impressive rates

5. Become better at expressing the benefits: This is about how to talk and describe your service. If you can learn more about how to communicate the benefits of what you do, customers will see more value in it.

Final Words

Even if you just implement one or two of them into practice, then you can start earning more. Change your philosophy and begin taking steps to earn more. Adjusting your price is an important strategy to increase your earnings over time. Otherwise, you will reach a point where it is not working as effectively anymore.

Author Bio :This post is contributed by Steven Smith, one of our happy customers and is an Editor of smallbusinessfriends.com, a business blog that shares tips and information about various business related topics. You can follow him at @SmallBizFriends

3 thoughts on “How to Raise Your Prices Without Losing Business?

  1. With all due respect, I don’t believe in hourly billing at all. Much better to go the fixed-price route. It is more in line with the value of your service and saves you lots of trouble in the form of discussions over time spent. It also allows more leeway in pricing — all you have to do is prepare your next offer with better return built in.

  2. Pricing does matter. It communicates your value. Be confident with your skills and you have nothing to fear. There will be enough clients for you to capture if you are competent.

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