Raising Prices Changes Everything
Alan* might feel tempted to keep his prices low because he thinks:
“I know what my clients make – they can’t afford premium prices.”
“My clients are cheap.”
“I live in a low-cost area.”
My clients won’t go for a price increase.”
But here’s the truth: suppressing prices is a trap; increasing prices is what gets Alan out of it.
Here’s why:
Full-price buyers exist. The right clients happily pay for Alan’s expertise.
Pricing signals value. Low prices cause prospects to question his quality. High prices suggest he’s earned his stripes and knows what he’s doing.
Confidence sells. People who know what they’re doing want to buy from people who know what they’re doing.
Scarcity works. When only a few spots are available, people want them more.
Cheap clients cost more. Sometimes they’re the neediest.
Higher prices and fewer clients compound. It frees up time and attention that can be redeployed upstream in the firm – improving systems, simplifying processes, and improving packages in ways that create compounding gains.
The solution?
Let price-sensitive buyers leave.
It’s scary, but when Alan increases his prices, he attracts clients who value working with him.
* Note: You’ll see me refer to Alan (and Bonny). They’re fictional characters. I finally gave up on the mental writer’s gymnastics around pronouns and the weirdness of writing “you” without sounding accusatory. And since I’m not a CPA, “we” could never fly. Writing in the third person lets me explain ideas without coming across like I was sticking a finger in… well, Bonny’s eye. 😉
