It doesn't matter what kind of business you have... eventually every entrepreneur gets to a point where they need to raise their rates.
But how do you know when it's time?
And how do you even go about it?
Here are my top three recommendations to keep in mind while you navigate increasing your prices.
1. Worth is totally subjective.
If you've been working at your craft for some time now, your time gets more valuable simply because you're getting better at your work. As you get better, your work will be in higher demand and others will be willing to pay more for what you do. This is just the basic supply/demand framework, but it's a good way to think about raising your rates.
2. Give your audience plenty of advanced notice and communicate well.
As the great Brene Brown says, "clarity is kindness". When it comes time to raise your prices, you want to do your best to maintain a good relationship with all of your current clients. This is accomplished by communicating about the change well in advance and with clarity.
Beginning 1-3 months in advance, explain to your clients exactly what will change in your pricing structure and what their options are for moving forward with you. You'd be surprised how many of them will be willing to pay your higher rates if you make the transition totally seamless.
3. Decide whether or not you want to raise rates for current clients
It's a question I get a ton, how do I tell my current clients that my prices are going up? What if they aren't willing to pay me more?
This is absolutely a personal call based on your business type and your personal values. I have chosen to keep my legacy clients (those that have been with you since the beginning and haven't left) at the same rate they started with. It might seem crazy because I've raised my prices significantly since then, but it's important to me to honor the trust they have in me.
Assess this for yourself to decide if it's the right thing for your business and the right time in your relationship with your client.
4. If you believe that there is value behind this change, it will all be worth it
This is totally a mindset struggle for a lot of folks. Before you raise your prices, you need to believe in the value that you're bringing. You need to believe that the work you do is worthy of your higher prices, or else your audience won't believe it. Do the inner work needed to get to that place where you feel content in the value you bring.
If you’re interested in even more tips on raising your prices, I HIGHLY recommend this recent episode of Through The Marketing Lens podcast.