One super common issue I see with many entrepreneurs is they are not valuing their work and their time enough and as a result they are not charging enough for their products or services. If you do not value yourself, it will be very difficult for others to value it as well. When we undercharge for our offerings, it creates a vicious cycle in which we are constantly working very hard just to make ends meet or keep ahead. Every time I have raised my prices, I have noticed significant shifts not only in income but reduced stress level. I also had so much more peace of mind I with my business as I was trying to juggle less, and I attracted a higher-level clientele. Think about the average person that goes to McDonalds. Now think about the average person that goes to a five-star restaurant. Which clientele would you rather have? I am not talking here about judging someone for either going to McDonalds or a fancy restaurant but simply note which type of clientele appeals to you more. Chances are you are likely somewhere in between McDonalds and a five-star place in your business. Even making an incremental step upwards in your pricing can help you feel less stress and attract a different demographic.
As I have continued to raise my pricing several times over the years, I have been amazed that the clients that stayed with me were usually the ones who were pleasant to work with and committed. Those who fell by the wayside and didn’t make the shift with me often the most demanding clients who also left me feeling drained. There are some clients who were lovely and simply shifted to purchasing books or products as my coaching and consulting became out of budget. Nevertheless, I was amazed as my work got easier as I raised my rates and simplified my business.
There is a huge psychological component to pricing. In other words, if something is cheap, people think it must not be good, or if something is expensive then conversely they think it must be good. These types of assumptions are not always accurate in our society, nevertheless they are there. If you offer a value or service at a high price tag, the perception of the offering will likely to be that it is a better or more worthwhile product. If you offer something at a low cost or value, the perception is likely to be that is has less value. There is also something to consider in terms of the practical aspects. You need a lot of little sales in order to generate the same revenue of one or a few large sales. It may be difficult to start charging a high rate immediately without having a base but if you build and increase rates as you grow and connect with those who experience the value of what you offer, you will likely be able to keep many of your clients on the way.
Another benefit of charging more and having few clients or offerings is that you will then have more free time to take care of yourself, invest your time and energy into professional development, create products or services that are scalable (easy to grow). Additionally, you will likely get more personally and professionally from your clients as well. Yes I learn from my clients all the time, it’s beautiful! These are all fantastic things. When I first started my business, I was so busy with clients! It was great because I was getting a lot of experience and connecting with a lot of people but once I had the confidence and experience under my belt, it was so great to cut down my hours, and have time to work and focus on strategy. Plus, if you are working less hours, you are likely to be less stressed and people rarely do their best work under stress. Be reducing hours, working smart instead of just hard, and doing a lot of professional development, I was providing better products and services while making the same amount or more. I have continued this pattern as I have grown my business and it is something I recommend for other entrepreneurs. There are of course times when you may have to put in a lot of hours in order to accomplish a goal or meet a deadline but this should not be business as usual. By having a higher rate for your services, you are valuing yourself, attracting others who value themselves and are willing to invest in themselves and their future, and giving yourself the time and energy to plan, strategize and take care of yourself because after all, life is not just about work.
If you have been thinking about raising your prices, take this article as a nudge from the universe to do just that. Also, if you haven’t read the Tim Ferriss book, The Four Hour Workweek, I highly recommend it.
Also if you have a hard time charging more and receiving in this way, remember, the more you charge, the more you can give and the more generous you can be. It creates an incredibly positive, giving cycle.
It may feel uncomfortable at first as you are doing something you have never done before but it will feel easier the more you do it!
To leveling up! And remember a rising tide lifts all boats, this is not a competition. As each of us does this, the world gets better and more abundant too.