How Do I Increase My Prices?
4 Things to Know to Successfully Increase Your Prices.
One of the many challenges about owning an agency is knowing how and when to increase your pricing. You’re afraid of losing business by outpricing yourself but you think you’re worth more… And you’re so right!
If you find yourself saying I’m too busy it is definitely time to raise your prices! Here’s how…
1. ASSESS the VALUE:
Understand the value you are providing to your clients and what opportunities your service creates for them. Ask yourself what results you deliver for your clients. Does your $10,000 website deliver them $100,000 in revenue? If so, that’s perfect. You should be delivering at least a 10x value. Assess the value of a project early on so you can estimate the right price for your proposal.
2. KNOW the BUDGET:
Get the client’s budget for the project to be sure it’s realistic with what you need to charge. Usually this is easier said than done. I used to start by asking the budget and when the client told me they didn’t have one, I’d have a little fun… “No budget? That’s great! We can spend a ton on testing…” 😉 When they’d fess up that there was indeed a budget, then I’d turn into a reverse-auctioneer, saying: “What is it then, $100,000? $50,000? $40,000?…” until we locked in a range.
3. BE CONFIDENT:
If you act uncertain of your worth and your increased pricing, your clients with be uncertain too. Be assertive. Hesitation on your part will make your client hesitant too. They will undervalue your work and your ability to deliver their desired results.
4. POSITION YOURSELF:
Be a trusted authority by providing value first – help, not sell. Then, instead of going in for the big project or retainer right away, use a foot in the door offer to make sure the first interaction is a positive one. Then insert yourself into bigger projects. It’s like having a coffee-date first instead of proposing marriage right away. Build trust and ease your way into the relationship.