Pricing is such a hot-button issue for most business owners, especially solopreneurs.
It’s one thing to make the decision to raise prices and then have a team of people to implement those changes and deal with the fallout from your customers… it’s an entirely different thing when you make the decision AND are the one to deal with the customers.
As a result, many solopreneurs avoid raising their prices out of fear. They worry that:
- Customers will leave
- Customers who stay will not be happy.
Yet, for most businesses, raising your prices will not result in either of these scenarios. Yes, it is possible that you will lose a few customers, and yes, some may be unhappy with your new prices, but most of your customers will simply adjust to the new prices without batting an eye.
This week, I’m sending out notices to all of my clients about my first price increase since I started my business in 2008. I’m finally bowing to the pressure that I have received from numerous sources — including some of my clients — to do so.
The reasons I’m raising my prices are NOT:
- Because I undervalued myself before and finally am willing to ask for what I am worth
- Because the cost of doing business has radically increased.
- Because my coach (or anyone else) told me to.
- So that I can make more money by working fewer hours.
No, the biggest reason that I’m raising my prices is so that I can better serve my clients.
I believe that it shouldn’t cost a fortune to start or grow a business. It was from this perspective that I created an affordable website design package that cost only $500.
This package made is super easy for just about everyone to get started with their business online.
The problem was that in order to deliver this product at this price, I had to leave out some important elements that actually help these brand new websites be successful — things like doing the basic SEO on the site, or adding ecommerce.
I also saw that those clients who actually experienced coaching with me — whether it was about their general website strategy or their target market or their optin gift — these clients were more successful than those for whom I just built a website.
When I started looking at my services from the client’s perspective, I saw that what I was delivering — while affordable — wasn’t actually providing the type of support that I wanted to provide. or that I thought the client deserved.
By repackaging my Affordable Web Design Package to include these other services that I had been leaving out AND including coaching in the deal as well, I create a service that better serves my client’s needs.
It is in the service of the client, then, that I am raising my prices.
An extra bonus: With prices that are a bit higher, I also add the ability to hire expert support staff to further serve my client’s needs by bringing in people who have experience that I don’t; people like social media managers and professional graphic artists. When my prices are rock-bottom, the help that I could afford to hire doesn’t have the skills or experience to support my clients in the manner that I expect. Higher prices means I can now afford to hire the right people — this will better support my clients as well as help my business grow.
Raising your prices is always a difficult decision. It was for me. I know that I will likely lose a few clients as a result. But I also know that the work that I will do with clients going forward will better support them to create the success that I know is possible for them. And that, really, is why I’m in business at all.