The New Year is on it’s way and what tends to happen in a new year? Business owners buck up and increase their prices.
… Wait, did someone just say price increase?
Price increases. Ahhhhh!
They can be a wee bit terrifying as a business owner to say the least.
“What if when I increase my prices, all my potential customers go running for the hills?”
“What if when I increase my prices, no past clients will refer new ones to me?”
“What if when I increase my prices, the world ends and my business DIES?!”
I know these can be frequent worries.
But I have another thought I’d like to present to you . . .
What if when you increase your prices, you finally charge your worth?
What if when you increase your prices you immediately get a raise?
What if when you increase your prices, you can take on less client work and finally have the time to build your business for the long-term?
What if you finally had the time to begin organizing and systematizing your business?
What if you finally had the time to build a product that you could sell over and over again, and not have your income tied to your hours anymore?
What if you could start a blog or a podcast or a YouTube channel or guest post or host webinars because you finally have the time to do activities other than just those that bring in the ?
You get the idea.
And let me just try to calm a worry you’re currently having.
In my experience of increasing pricing of both my services and products, my business didn’t suddenly die, in fact, hardly anyone even noticed!
(Mind blown? I was!)
When I doubled, (yes DOUBLED) my web design rates one time, I saw no difference to the number of inquiries I got or clients I landed! (That story is here if you’re interested, btw.)
Not one person sent me a message or email to ask about why they increased. It was as if nothing happened.
One time my assistant and I also noticed part way through a product launch that our price was wrong on the sales page. We had calculated the price of the bundle of our 2 courses incorrectly and had been selling it accidentally for $100 cheaper than it should have been.
We corrected the price to what it should have been all along, mid-launch.
To potential customers however who had already been to the sales page and were in the decision making process of if they wanted to join, it would have looked to them like the price was $100 more from one day to the next for absolutely no reason.
We were fully prepared to offer the lower price to anyone who got in touch (justifiably) annoyed that the price raised $100 for seemingly no reason overnight.
These experiences acted as a pretty big lesson to me.
So, if you’re currently thinking of increasing your prices, take the paper bag away from your mouth and chill the eff out. It’s really not something you need to stress like crazy over.
Okay, so if you’ve decided that now is the time to increase your prices, then I have a little tip for ya! There’s a good way and a bad way to go about a price increase. I want to show you how to use that price increase to your benefit!
The first time I increased the prices of my web design services, I went about it like a mouse.
Timidly, v behind the scenes, feeling like I was a secret agent on a mission, I changed the price on my website quietly, nervous that one peep about it would lead to the internet banging down my digital door, having an absolute freak out.
I worried every hater from YouTube was going to come after me with pitchforks, so I figured the best way to do it was very quietly, hoping no one would notice.
Well, years later I’ve learned a lesson.
It’s best to actually make a big freaking deal of your price increase. Why?
Because if someone wants to book with you or buy from you after the price increase, they’re going to pay more. So you’re actually doing them a heck of a favor by letting them know prices are going up and giving them a chance to get in at your old prices.
So you can do this one of two ways, it doesn’t matter much which you choose IMO.
You can either increase your prices and then let people know for a certain period of time they can still get in at your old price and save X dollars.
You can let people know your prices are going up on X date and what they’ll save vs. the new price if they book now.
It’s really all the same thing in the end.
No matter which way you do your increase, there needs to be an end date and time to when customers can buy your product or service at the lower, discounted price.
And remember, if you set a deadline but never talk about it, no one will know. So make that deadline VERY noticeable. Everywhere you mention the price increase & discounted price, you also need to mention the deadline and how much time is left to snag the lower price!
So who do you want to let know about your price increase?
If you sell services, get in touch with every single past inquiry and let them know the price is going up
Post about it in all the usual places on your site. For example your announcement bar, cover page, pop up, footer, top of your home page, top of your page, in your blog sidebar if you have one, etc.
Post on all the social channels you use
Send an email (or 5) to your email list
If it’s in the budget, run some ads mentioning the price increase & lower price people can still snag
Any other methods you have for contacting people who would potentially be interested in your service!