Let’s talk pricing.
Unpopular opinion: not everyone should be charging top dollar for their services. In fact, some people might actually need to lower their prices.
Saaaay what?? Yes, pricing your services at the tippy-top of your industry is not for everyone. Pourquoi??
You see, in order to successfully charge top dollar - without alienating your current and potential clients - you have to provide consistent, industry-leading service.
Let me tell you a little story about a law firm that I used to work with.
This firm had prices that were significantly ‘above market’. Everything they did seemed to cost an arm and a leg (think 2 - 4x what the same service would cost at other law firms). I won’t name names because it's a small world after all lol, but suffice it to say, this firm was priiiiiicey.
But, you know what, friend? This firm was also incredibly good at what they did.
Their legal docs were extremely well written and rarely contained any errors or typos
The turnaround time for their work was faster than other firms
They asked thoughtful questions and worked collaboratively with their clients - really listening to understand exactly what was important to them and their advisors, and
They regularly presented at conferences and seminars where it was clear they were researching ideas and opportunities that other professionals hadn’t even considered.
In short, they were expensive, but also provided extremely good service so people rarely had a problem with their invoices.
They weren’t the firm for everyone, but when there was something important that needed to be done properly, they were the go-to firm. While I know these are challenging economic times for many biz owners, I’d guess that firm is doing a-ok.
Why should you care, friend??
Well, if you’re running a biz, the idea of lowering your prices probably doesn’t sit well with you. And you and I both know consumers are spending differently than they were even 6 months ago.
So if you are considering increasing your prices, I need you to stop, collaborate and listen. Haha jk.. but I do need you to consider 3 things first:
Are you willing to consistently provide a service that clients will feel is a “no brainer” to pay extra for?
For example, my hairstylist (whom I love) charges top dollar. Here’s why I have ZERO issues with that: I went for a cut and colour last week and I was in an out of her chair in less than 2hrs. LESS THAN TWO HOURS. For someone who, once upon a time, used to spend 3 - 4 hours every few months with a hair stylist who double (and sometimes) triple booked me, I’m v. happy to pay a bit extra to cut my time in the chair in half. Pun 1000% intended haha.
Are you willing to invest time and money to upgrade your skillset on an ongoing basis?
Lawyers, accountants, doctors all have continuing education requirements put in place by their regulatory bodies - there’s a “public good” reason for that, but it also allows us to stay up on the latest developments in our field.
Just because you aren’t one of those specific professions doesn’t mean that you shouldn’t also invest in upgrading your skills.
Are you willing to do the hard work to develop quality control processes to ensure you are proud of the work that leaves your store/office?
I have had clients that received shit service from a pricey, third-party vendor. And you know what I advised them to do? Take their business elsewhere.
If you’re that vendor (and I think we’ve alllllll been ‘that vendor’ at some point), maybe you just had a bad day. Maybe. But if this is a trend, you will need to invest in quality control processes to ensure there is some sort of prep/review process in place for your work product.
And if you don’t want to consider these three things, I can almost bet I know how this story will play out…. you raise your prices, you lose clients, you blame clients and say they just weren't a “perfect fit”, and…. crickets. You have some of your lowest revenue months ever before realizing that you need to make some BIG changes in order to align with your new, higher prices in a way that draws in clients.
Setting/adjusting your prices is something that we can talk about in my Business Blind Dates 💕💕. There are only 2 spots remaining for July.
These are free 30min Zoom coffee chats where you can meet with me - a biz owner who has helped 6, 7, and 8-figure entrepreneurs to overcome challenges like increasing their prices and going on to build sustainable, high profitability businesses. This topic I just taught on is something we can dive into further.
Again, 2 spots avail for July - absolutely free. Here’s the link to fill out your application:
Take care and talk soon,
Tanya