How To Raise Your Prices AND Keep Your Fav Clients
Last week, we talked about the frequency (or “cadence”) that I recommend business owners conduct a Pricing Review…
…So, I can only assume that I’ve converted you into someone who reviews their prices annually ;)
Great. And I can almost hear you saying:
“If I increase my prices, I’m going to lose clients. Last time I did this, I lost client ABC and my revenue dipped for 3ish months”
I recognize that’s not an ideal situation. No one loves when their top-line revenue takes a hit - especially when balloon payments like insurance, professional fees, GST, etc are sometimes due early in the calendar year.
I get it. You want to protect that cash flow. And… I’m going to stand firm in my advice:
**The quickest way to figure out which clients are no longer an energetic fit for your services is to adjust your prices**
This doesn’t mean you’re firing clients.
This doesn’t mean you don’t like the people you currently work with.
But I know you. You do lots of work on yourself.
You have a meditation practice and probably a movement routine of some sort that helps you centre yourself each and every day. You also spend time reading business books and following your fav biz minds online.
And what happens when we spend time improving our health and expanding our minds?
We inevitably grow.
And sometimes that means we outgrow our current clients.
Listen - I’m not telling you anything you don’t already know, friend.
You’re probably already thinking of *that* client who always has a great reason why they can’t implement your advice or who consistently pushes your boundaries by mistreating your team.
We all have (or have had) that client.
So today, I want to encourage you to take that bold step to follow the advice of your Pricing Review.
Yes, you might lose *that* client.
But in reality, it’s a net gain because you’ll create space for better fit clients to come through.
And I can almost promise you that those clients are just around the corner.
Now, I recognize the title of this newsletter might’ve been a little misleading. A better subject line could’ve been, “How to Raise Your Prices and Keep the Clients Who Are Actually a Fit for Your Services.” Lol.
In any event, I want to provide four best practices for reaching out to your current clients with a price change:
Timing: Notify your client well in advance (30-60 days) to provide them time to process the change.
Transparency: Clearly explain the reasons for the increase (e.g., increased costs, expanded services, market rates).
Options: Offer flexibility by providing choices, such as maintaining current pricing with reduced services or accepting the new pricing with all services retained.
Value Highlighting: Emphasize the value they’ve received and will continue to receive.
If I’ve piqued your interest, - yay! Pricing is hard. I want to give you as much info and insight as possible to help you make the best decision for your biz.
Take care and talk soon,
Tanya