September 15, 2020
Let’s talk pricing. As a business owner, no matter whether you’re a service, digital, or product based business, pricing can be the cause of so much frustration. If knowing when to raise your prices is the cause of you wanting to pull your hair out, this episode is LITERALLY for you. Today we are covering the 3 main points when it comes to knowing WHEN to raise your prices. Hint: it’s NOT based on feeling. Let’s get emotion out of it, and learn how to know when to raise your prices and be CONFIDENT in that as a business owner. You down?
When we both started, we were CLUELESS and had no idea how to price ourselves. While it’s not full of the pricing strategies and formulas we use now, we did do a lot of things decently well on WHEN to raise our prices.
When Evie was first starting with photography and turning it more into a small business rather than just a hobby, she was charing about $50 for senior sessions and engagement sessions. She charged $200 for her first wedding. She started getting more and more inquiries at those prices and as she started getting better, she slowly started raising her prices bit by bit.
She was honestly just throwing numbers out there. Evie was doing a lot of comparison and pricing herself compared to other photographers (which we now do not recommend!!). Evie was increasing her prices as she was shooting more, getting better, and more people were asking her for shoots. She shot a senior session for $20, and then raised it to $50, and then $75 and so on. It was a fast progression. As more inquiries came in, she slowly raised her prices.
Lindsey second shot her first wedding EVER for free. She charged $500 for her first wedding and $100 for her first sessions. She raised prices slowly over time.
All of her first wedding clients were close church friends, and depending on when they booked, they got a drastically different price. The couples who booked her when she first started booked for $500. A year later, friends booked her for $2,000.
Her quality and experience that she provided at $500 was way less than how she was able to serve her clients when she was charging $2,000. You could tell the difference.
It could have been easy to worry that her friends weren’t going to want to pay that much when they knew others booked Lindsey for cheaper, but she didn’t let that stop her from charging what she was worth.
When your demand and interest in your work is increasing, your prices should be doing the same. You can do this slowly. Slowly increase your prices as the demand and interest in your work increases.
If you’re charging a certain amount for your service or product and are consistently getting booked or getting sales, that tells you your demand is up. This means your prices should also go up with that demand.
If you are feeling overworked and overwhelmed, this is a clear indication that it is time to raise your prices. Raising your prices allows you to sell less, make the same amount of money or more, and get your life back.
We started raising our prices as we got more and more experience. Start raising your prices as your product, service, skills, and experience start improving.
Product: If you get a new material or tool for your product that’s more high quality, your prices should increase accordingly. If you invest more into even better packaging or shipping, prices should increase with the value the customer is receiving.
Service: If you learn something new from a course, mentorship, coaching, workshop, or conference and that affects the final result of the experience you’re providing, raise your prices to reflect that.
If you learned how to create a well-branded pricing guide or how to spoil or bless your clients with gifting services, thereby giving them a higher quality experience, raise your prices to reflect that.
The more you master your product or skill, the more you should be charging.
You do NOT have to raise your prices at the beginning/end of a year. A lot of people believe the concept that you can only raise your prices on January 1st of every year. WHERE does that come from? There’s NO strategy behind that. If you didn’t add value or you’re not in demand on January 1st then why the heck would you raise them???
If your business is BOOMING in July, then raise them then. You don’t have to wait for January just because you think that’s when you’re allowed.
You do not have to be stuck at specific prices (unable to raise or lower) forever.
EXPERIMENT with your pricing! Did you add value to your service? Raise your prices. Are you getting less inquiries? Try lowering.
Need more cash in a certain season of life? Offer a discount!
Don’t be afraid to be the boss. You’re the boss. No one is monitoring when you’re allowed or not allowed to increase or decrease prices. YOU get to decide that! It’s your call!
No one is paying attention to your pricing. Get out of your head that people are gasping every time you raise or lower your prices. Be the boss and control your own pricing.
You have to remove the emotion out of pricing. As a business owner, you can not attach emotional worth or value to how you price your business. It is strictly business. If you maintain this mindset, it will serve you so well in the longevity of your career and business.
Explain your worth. Explain how your product or service is a better quality than it has been in the past. Explain your demand. Just be frank and honest.
You can also value returning customers with percentages off discounts. If you have a service, give them a discount if they hire you again. If you have a product, give them a code in their package to buy from you again at a discount or send them an email after they purchase with a discount code.
People value when you are upfront and honest.
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WASSUP FRIENDS. We’re Evie + Lindsey, co-founders of this wild partayyy called The Heart University. Our goal is to empower entrepreneurs to kick freaking BUTT in their businesses, dive down into the heart of their why and how, and serve you with all possible tools you’ll need to up-level your business game and CRUSH those goals of yours.
Whether you’re coming to an in-person workshop, joining our online course, or soaking up all the strategies via this blog or our podcast, we’re STOKED you’re here + can’t wait to see you out there kicking butt.
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