How to raise your prices without losing clients

Posted by devan under Management
From http://www.enmast.com 3824 days ago
Made Hot by: SJC on June 16, 2014 11:58 am

You purposely set your prices lower so that you could get more business. But instead, you're working all the time and barely making enough money. Brad walks you through what to do:

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Written by lyceum
3811 days ago

Devan: It is a philosophical statement and it often generates a discussion about the value of your services and how to set an objective price. From my post, SPONSOR AND SUPPORT EGO BLOG (EGO blog, February 1, 2009):

"As a "trader in matter & spirit," I am open to discuss different terms of exchange of values, i.e., delivery of service and payment. As a supporter of objective money, i.e., precious metals, my standard price is 1 kg / ~35.27 oz of silver (Ag) according to the buy rates at GoldMoney for a 1/2 working day (circa 4 hours, effective time)."

I will continue to develop my price strategy and write a new post on this topic in the near future.

Have you tested the idea that the customer decide what to pay for a work project? They "name the price"...

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Written by tiroberts
3813 days ago

Amazing article. I think that this is one of the most feared things when it comes to doing business and keeping your current clients. You've given some awesome tips. I would also be interesting in knowing what you're thoughts are on customer retention best practices?

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Written by devan
3813 days ago

Thanks, Tiroberts! It's also a scary thing for me as well. For retaining clients, occasionally I'll do a little extra work at no extra charge "just because." I work on building a strong relationship with them -- professionally, but also get to know them as well so that A) I retain them better B) They refer me out C) When I raise my prices, they usually don't have a problem with it.

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Written by AngelBiz
3814 days ago

Brad - Interesting idea. Econ 101 definitely supports this with supply and demand theory. Most business owners are reluctant to do this for fear of losing their client, but that's what you really need to be able to manage the remaining ones properly. The danger of not doing this is to hurt your ability to service any client properly and eventually lose them all.

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Written by devan
3813 days ago

Exactly -- you'll mostlikely lose a client or two in the beginning, but you'll be able to focus more on the clients that you really WANT to have. Or be able to make the same amount of money with fewer clients. Thanks, AngelBiz

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Written by lyceum
3814 days ago

Instead of raising or lower prices, I let the market price on silver, decide the price for me! ;) I have written post that my standard fee for a half day (4 h. effective time), is 1 kilogram of fine silver (>99%). If the spot price silver goes down, my fee gets lower and vice verse. This is a philosophical statement.

It could be hard to raise your prices, if you have started out low from the beginning. I do agree with you about the principle of supply and demand.

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Written by devan
3813 days ago

I have to say, Lyceum, that is the most unique way I've ever heard of anyone pricing their services. :) Thank you for sharing that! What was your main reason for doing that?

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