How to Raise Your Prices in 2024
There’s one common experience that all small business owners face if they stay in business long enough: asking clients for a raise. As your business grows and evolves, costs change, your knowledge and skillset expands, and so does your value.
That’s why today, we’re sharing five (5) practical steps to help you ask for a price increase from your loyal clients - as well as two email templates you can use right away.
You deserve to find financial freedom as a business owner - without having to work 24/7. So if you’re having a hard time making ends meet or you’re working way too hard and still not bringing in six figures, it may be time to raise your prices!
How to Ask for a Price Increase
Step #1: Tell your clients well in advance about the price change.
No one is going to jump up and down over a price increase. But people really don’t like these increases when they aren’t notified. So tell your clients well in advance that the changes are coming. This not only gives the appearance of control, which establishes trust, but it allows them time to make financial decisions for their own business. (Psst: Use one of the email templates below because they include language to help you check this box!)
Step #2: Justify your price change, but avoid being apologetic.
There’s nothing to be sorry about when it comes to price increases. Cost of goods goes up, the market changes, your experience evolves, your booked up and busy so you can’t take on any more clients… Those are all legitimate reasons to ask for price increases. When you prepare your email for your clients, clarify why you’re asking for more money. Be honest and fair - but avoid apologizing, as it reduces the value of what you offer.
Step #3: Remind your clients of the value you bring to the relationship.
Speaking of value… price increases are a great time to remind your clients why they love working with you and what you bring to the table. Whether you outline this specifically in your emails or just continue to show up and go above and beyond for them, take this chance to shine. It’s almost inevitable that you will price yourself past what someone is comfortable with, but if they remember why you’re the best at what you do, they’re more likely to stick around and make it work because they can’t imagine anyone else doing a better job!
Step #4: Believe in your inherent worthiness.
This step is less about your clients and more about your money mindset. When you raise your prices, you should be clear in your financial desires, and ask not from a state of fear or greed, but from a state of knowing, gratitude, and a desire to be the best at what you do. After all, you cannot be the best at what you do if you’re working 24/7 and still not paying the bills or taking care of yourself and/or your family. So if you feel guilty about asking for an elevated price, dig deeper. What’s telling you to feel that way? Ultimately, you’re more likely to hear, “Yes,” to your new price points when you are unshakably confident in your request.
Step #5: Keep it short, but personal.
Don’t tip-toe around it - get straight to the point, but with a side of personality. If you’re typically really causal in your communication, it may seem jarring if a really formal letter comes across their desk. Find a happy medium that allows you to deliver the news in a clear-cut manner, but without abandoning your unique voice.
Email Templates to Help You Ask for a Price Increase Today
Now that you’re mentally prepared to ask your clients for a price increase, it’s time to write your email or letter.
I’ve written a ready-to-use template for you to send to your clients! Whether you send an email, a physical letter, or use these ideas on a phone call is totally up to you. Customize it, make it yours, hit send, and then come back and tell us how it went!
Remember, an effective price increase is about strong communication with your clients and the knowledge that the value you provide backs up your request.
Sometimes tasks like sharing your rate increase feels like ripping off a band-aid. That’s totally normal, by the way.
I’m known for my real-talk mixed with an unwavering level of support as a business coach, so I can’t write about this topic and not share that at some point in time, you’ll have a client who doesn’t want to continue on at the new price.
And in that moment, I need to remind you of something: you did the math, you know your value, and you’re going to find a new client who will say “Yes” to the new price.
It’s happened to me, and it’s happened to nearly everyone I’ve ever coached through raising their prices. In fact, if you’re never hearing, “No,” you’re doing it wrong.
But when you get that “Yes” for your new price point and you realize you can breathe a little easier and deliver an even better product, it makes it all worth it.
If you’re not sure if you need to raise your prices and you want an expert to ensure your business is set up for long-term success, let’s chat about working together one on one.
I’ve helped countless creative business women raise their prices, elevate their packages and offerings, and make more money doing what they love. I’d love to help you next!
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