How To Raise Your Prices (And Respond To Objections)
Raising your prices can be a tricky thing in business and frankly an uncomfortable experience for a lot of folks. The first time you raise your prices, the primary thing that comes up is imposter syndrome.
Am I good enough? Can people tell I'm faking it till I make it?
What if I don't have enough experience?
Will people think I'm a fraud if I don't know all of the answers, every time?
Eventually we get enough confidence to start charging enough to cover our operating expenses. We celebrate every client, every win in our business and we feel like we are making progress.
Then we get tired of essentially working for free and decide to up our game to make the money we would actually like to make. But that second tier leap bring a whole new bag of fears and doubts to the table.
Will people actually pay me those prices?
Will I lose potential clients?
What do I say to people who have worked with me before?
Here's the thing. If you have been in business for at least a year, have produced quality work, and are still working for peanuts, we need to have a conversation.
Your time has value, Your expertise has value. YOU have value. Own it.
Every handful of clients or so, I evaluate and raise my prices based on my offering, what I enjoyed and what I learned.
I'm constantly investing my education, skill set, gaining hands on experience working with clients. My rates should reflect this. And so should yours.
I'm not saying arbitrarily raise your prices. I'm saying if you are exhausted from juggling so many clients and hustling to find more, then raise your prices fairly with integrity and communicate that change sooner rather than later.
When it comes to those 1:1 conversations that are uncomfortable with clients about your price increase, here are some professional but honest ways you can communicate with your audience about raising your prices.
Option 1
Let them know you are better but love working with them
“Hey ____!
I realize that this is a large increase from the last time we worked together—but I’ve upped my game and have taken classes in/brushed up my skills ____ and ____. That means I’m even better at ____ than I used to be, and my rates now reflect this.
Because I loved working with you so much last time, I’m willing to offer you a discount on this one project of $____. Please understand that this is a one-time offer, and any future projects together will fall under my new rates.”
Option 2
Let them know you are better And worth it
“Hey ____!
I realize that this is a large increase from the last time we worked together—but I’ve upped my game and have taken classes in/brushed up my skills ____ and ____. That means that I’m even better at ____ than I used to be, and my rates now reflect this.
Because my skills in ____ have improved, I’m able to ____ and ____ more efficiently/creatively/effectively, and produce even better results than last time! I’m sure you’ll see the difference!
I hope you still want to work together—I’m confident that your ____ will be amazing!”
Option 3
Accept that maybe they just aren't your ideal client anymore
“____,
I realize that this is a large increase from the last time we worked together—but I’ve upped my game and have taken classes in/brushed up my skills ____ and ____. That means that I’m even better at ____ than I used to be, and my rates now reflect this.
I realize you have a budget you need to stick to, and my pricing is now outside of that budget. As much as I love working together, I think this may not be what is best for our businesses.
I’m including a list of other people who are in your price range, hopefully one of them will be a great fit for you!”
Notice how I'm still serving this person by NOT leaving them hanging without a solution?
That's being a true professional, not acting out of a scarcity mindset and a huge part of you leaning into your higher price point type of client.
