How to set higher prices without feeling like a used car salesman:
I hear it all the time. “I didn’t start this business for the money. I started it to make a difference!” As noble of a statement that is, there’s no reason why it has to be one or the other.
If you are opposed to raising your prices, it’s probably because you:
- Don’t think your customers will be able to afford you.
- Don’t think any new customers will pay for what you offer.
- Don’t think what you have to offer is worth more money.
If the thought of charging higher prices for products or services gives you a small panic attack – those same products and services that are supposed to be providing you a decent living wage – then I have some good news for you.
It’s all in your head.
This money mindset is extremely popular, and it’s an extremely limiting one, especially among health and wellness practitioners. And I think it’s time we have a little chat about how to get out of your own way and start making a wage that represents who you are and what you have to offer.
Grow steadily over time:
If you’ve been in the business a while without raising your prices, your customers may start to wonder why. With experience comes a price and it’s no secret that you get what you pay for. While I love only paying $10 for a yoga class, I will absolutely pay three times as much if I know the instructor is worth it.
Maybe it’s time to let other beginning entrepreneurs in! If you charge too little, for mid or top tier services, there’s nowhere for the little guys to start. If you move up to higher-paying (more dedicated) customers and let the beginners have the low-paying customers you’re actually doing the industry a favor.
Make a shift from dollars-per-hour to package pricing:
This might be a big shift in your business model, but it might be a really good shift. If you offer “small, medium, and large” options to your customers, there will always be something for everyone. And your “large” option has the potential to make you a lot of money – think memberships and advanced coaching.
Market value, not price:
Focusing on value rather than on price is easier said than done but this is where that mindset comes into play. How many years have you been in business? That counts for something. How much training do you have, how many classes have you taken, how many certifications have you earned? All good proof that what you have to offer is more valuable than your competition. If you are committed to charging what you’re worth, it’s time to assess and really understand your value.
Protect your brand:
Your brand is not just a logo and an ad in the local paper. It’s how your ideal customers view you. It’s your credibility within your niche. It’s how reliable you are as a resource.
And it’s charging what you’re worth, with confidence.
Don’t copy your competitors’ pricing. Stand out by positioning yourself where you want to be seen and how you want to be judged. Do you want to be Walmart or Bergdorfs? Pricing is branding.
Target your promotions:
If you play the long game and build relationships with your prospective customers, they’ll come to see the value of your services before ever finding out the price. Marketing is the best way to show people your value. Promotions are how to tell those same people about your offerings. Don’t talk to the entire world, target the people who already trust you and your business. At that point, price matters far less.
In the end, prices are only what you and your customers believe they should be.
There’s no set price for a cup of coffee, a yoga class, a coaching session, or organic vegetables. When you’re able to confidently set your prices based on value, you’ll never look back.