How To Raise Your Prices In Your Virtual Business
Pricing in a virtual business can be complicated. As your services become more “in demand” you may realize that your rates are too low and that it’s time to raise them. The idea of doing so might make you uncomfortable, however. If this applies to you, here is a step-by step guide to raising your prices in your virtual business without those icky salesy feelings.
Step 1. First accept it yourself. You’re valuable and you deserve to be paid what you think you’re worth. Decide what you think you should be earning and then what rates are in the “not enough” range.
Step 2. Once you have made the decision to raise your rates, make sure that the increase is reasonable compared to what you are charging now. For example, a price jump of 100% is going to scare a lot of people away. You may need to justify this massive jump for current clients otherwise they could be left feeling swindled.
Step 3. Set a date the new rates will be effective. People don’t like surprises especially when it comes to price hikes. Email your current clients and give them plenty of notice of when the rates will change. Often companies choose the beginning of each year when the CPI index is published.
Step 4. Offer a loyalty discount to current clients prior to the rate change. If you are selling coaching packages you could offer current clients a package with several hours worth of your time that they have to pay for in a lump sum to lock in the old rates. Not only will this reward current clients for loyalty, it will ensure that you have money coming in should any clients jump ship during the rate transition.
Step 5. Send a reminder of the rate increase right before the change. Again, offer that loyalty discount one last time.
Step 6. Raise the price. No ifs, ands or buts. When that date comes that you have officially set for your price increase do not go back on your word. Assure your clients you love working with them and remind them that you are always going to offer the utmost quality services from your virtual business.
Step 7. Accept that you will lose some people. Hopefully you won’t lose too many people, but if you do at least now you know that you guys are no longer a good fit together. If this does happen it’s time to go out and find clients willing to pay what you’re worth.
Remember, someone out there is always going to be willing to pay the price you know you deserve as long as what they are getting in exchange for the rate is valuable to them. This is why Rolex makes so much money. At the end of the day it’s just a watch, but it’s the perceived value of the watch that prompts people to pay the over the top price.
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