‘Price is what you pay. Value is what you get.’
WARREN BUFFET
If you want to earn more in your business (and you’re not ready to add passive income sources), you have two main ways to accomplish it: work with more people or charge more. You may have already done the math and realized that you can’t work harder without going into burnout and overwhelm. If that’s the case, raising your prices is probably the easiest way to earn more money.
But you’re going to resist it like crazy. One of the things women do – even after they get over the initial hurdle of setting their prices in the first place – is rarely review or change those prices. If that’s true for you, you’re either going to love this chapter or want to run away from it screaming.
I once mock-chastised my very talented photographer friend Claire Thomasina because I felt her prices were too low. She said: ‘Denise, last year I was doing this practically for free – you’ve inspired me to increase my prices, but I need to sit here for a while before I jump again.’ That’s fine. Claire knew she was probably still undercharging, but she needed to acclimatize to her new rates before she raised them again.
Even if the thought of increasing your prices makes you feel a little sick, there are some undeniable signs that will help you determine whether it’s time. Ask yourself:
If you answered ‘yes’ to three or more of these questions, it’s time to increase your prices! Nobody is going to give you permission’ you have to claim it for yourself, and decide that you’re worth it and that now is the perfect time. Let’s dig into these signs a little deeper.
Are you in such demand that you’re booked out for weeks, if not months, in advance? Time for a price increase. Are you seeing clients back to back with no time in between to grab a cup of tea or take a quick pee? I’ve been there! Remember, I used to get up at 5 a.m. for my first international client of the day and had all-day sessions without a break.
Sound familiar? One biz friend told me that she once peed in a towel during a call because she had no time for a toilet break! This is not good, but highly relatable. I didn’t do the towel thing, but I’d mute myself on the phone so I could sneak to the bathroom and relieve myself without my client overhearing.
It’s nice to be popular, but if your client schedule is starting to impact your life (or your bladder), it’s a sign you’re ready to increase your prices. In fact, you can increase your rates and the demand probably won’t drop off that much. Trust me on this. A long waiting list is a big sign that you’re too inexpensive for your reputation or for the results that you give people. Before you try and justify this, let me first say that everyone’s version of ‘booked out’ is different. Your capacity is entirely personal.
Pricing is all about supply and demand. If you have a lot of people clamoring for your services, chances are that you can afford to increase your prices, at least a little bit – if not a lot. Working an over-demanding schedule because you can’t say no is unsustainable, and one of the ways you can recalibrate demand is to charge more in alignment with your actual value in the marketplace. No more metaphorical (or literal) peeing in towels!
The bonus is that you’ll work less and either earn the same amount or more money than before. And you’ll have more energy to serve your clients or to reclaim some creative space to focus on other projects, like writing a book or creating a course, that could help you serve even more people.
Now, you might resist this because it feels like cheating if you’re earning more for doing less. If that’s the case, it’s time to reread Part I: Mindset to work on your blocks and Part II: Business Models to find a model that causes less stress.
Being booked out is often a sign that
you’re charging too little.
‘Fast, Cheap, and Good… you can only pick two.’
ANON
You can’t be extremely good at what you do, deliver results faster than everyone else, and be the cheapest in the market. That’s a recipe for disaster, and not even remotely chill. You might have a reputation for being the ‘emergency go-to girl’ who does things quickly, or maybe you’re just a sucker for sob stories. It’s flattering to be in demand, but it’s more fun to make money and not live in stress all the time, especially if you’ve developed a reputation for being someone who can fix disasters.
I’ve heard lots of horror stories. For example, the résumé writer who worked all weekend to finish a client’s ‘emergency’ request (without asking for payment up front), and the client then ghosted after receiving the CV. Unfortunately, this is way too common. Some clients urgently need a logo by the end of the week, even though they’ve failed for months to provide the necessary design information. Some coaching clients ‘desperately’ need to talk today due to their own bad time management (I’ll admit I’ve been that client, but I’m always prepared to pay for it!)
Do you need lots of time and space to do your work, or do you love the adrenaline rush of finishing jobs quickly and meeting intense deadlines? Your capacity is a huge consideration when setting and increasing prices, as is your lifestyle. Do you really want to work evenings and weekends for little money and ungrateful clients? Hell, no!
The problem is that many women unwittingly create this scenario by saying yes to last-minute requests and not charging enough in the first place. If you keep attracting clients who are disorganized and expect you to fix their problems, you either need to change your marketing, put some new boundaries in place, or create a whole new offering with a price that works for you. Recognizing the fact that you’re attracting high-maintenance clients is actually an opportunity to create a lucrative premium service for your business.
You could set two-tiered pricing: a standard one and another to ‘jump the queue,’ for impatient people like me. For example, if your wait time is now several weeks or months, you could easily increase your prices. But if you added a premium service, you could cut the wait-time down to a week. Here’s how that works: you could allocate three days a week to regular clients who have to wait in a queue. But you could reserve one or two days a week for people who don’t mind paying a premium to see you sooner.
Does that feel unfair? Why? Lots of businesses offer this kind of service, and people don’t balk at paying more for certain things. You pay extra to online retailers to have your package delivered faster, right? Why shouldn’t you do it too?
Some businesses use the higher premiums paid by ‘express service’ customers to keep prices low in other areas. So, if you feel bad about charging for fast-track service, you could use a portion of the proceeds to create scholarships for people who couldn’t otherwise afford you. And by the way, just because what you do is easy and fun for you, doesn’t mean it should be cheap for clients. Fast turnarounds are a premium service no matter how long it takes you to complete a project.
‘Poor planning on your part does not
necessitate an emergency on mine.’
BOB CARTER
Some service-based entrepreneurs add a certain percentage (anything from 10 to 50 percent) to their standard rate for rush work. Others have one price for their usual timeframe and another for a faster turnaround. Charging a premium rate can feel scary, but as I said, it’s standard in almost every industry. The key is to identify a cost that gives clients what they need and feels good for you.
Lastly, reframe a ‘rush job’ into premium service. It’s all about marketing. Don’t make your clients wrong for wanting quick results! Instead of berating them for being disorganized or framing your premium price as a penalty fee, make it something positive. Call it a ‘VIP rate’ or a chance for them to ‘skip the queue,’ so they’ll feel special instead of penalized.
Whatever you decide, attracting these clients is a tremendous opportunity to serve people who want instant gratification – or who have more money than time (like me). Just make sure you charge accordingly!
Instant gratification should cost more.
One of my Money Bootcampers, creative coach Bonnie Gillespie, told me that her motto used to be ‘drama costs more,’ but after working on her money blocks, she now says, ‘drama is someone else’s client.’ Ah, that feels so much better!
Most entrepreneurs have a low point in their business when they think, This isn’t worth it. I should just get a job. You’ve been there, right? If you’re attracting clients who always complain, try to negotiate on price, nitpick your work, and generally make your life hell, it’s a huge sign that you’re an energetic mismatch to your current pricing.
It’s the universe’s way of forcing your hand to increase your prices, not a sign that you should quit your business, that you’re in the wrong line of work, or you’re not ‘cut out’ for being in business. Please listen, otherwise those nightmare clients will keep coming! You deserve to have clients who gladly pay you for what you do without stress or drama.
When you charge too little, you think, I’m delivering so much, and I’m trying to make it so affordable. Why aren’t they happy and grateful? It’s not the price. You’re an energetic match to people who don’t appreciate you because you’re not appreciating yourself. You’re just attracting clients who mirror the energy you’re projecting.
Many women ignore the signs and work with someone because they feel obligated to – not because they feel like a fit. Listen to your gut. Pay attention to the red flags that tell you someone has the potential to be a painful client. You can recognize these people by their demands for a discount when you know you’re already affordable, requests for accommodations above and beyond what you’re comfortable with, and the constant overstepping of boundaries.
Do you feel good or resentful when you work with a client? When you charge appropriately for what you do, you’ll attract those who mirror your self-worth back to you. Plus, when you’re not desperate for every single client, you’ll feel empowered to say no to the ones you know aren’t going to work out!
My friend Natalie MacNeil, an author and coach, calls this a ‘fuck off price.’ She says, ‘This is your internal, pre-determined number of what you’re willing to work for. If the client isn’t willing to pay at least this as a minimum, then you can absolutely say no to the project, no questions asked.’
Natalie says her fuck off price came from the 80/20 rule: the lowest-paying 20 percent of her clients were the ones who caused the greatest amount of stress. Increasing her prices helped her focus on clients who actually appreciated her. You don’t have to work with painful people. Increase your prices and often, they go away!
High-maintenance clients are never worth the money!
Someone recently told me that she wanted to lower the price of her coaching packages because she was so good at getting results that her clients ran out of things to talk about in multiple sessions. She basically ‘cured’ them in one session, so she wanted to reduce her prices drastically because she felt guilty. Hell, no!
I don’t know about you, but I’d pay a premium to work with someone who was so good that she could get me better results in less time. I highly value speed and efficiency, and I’m willing to pay for it!
There’s a price point for every market and budget, and that’s true of any business. Lots of industries have tiered pricing, like consulting firms and even hair salons (senior stylists are more expensive than apprentices). Experience often means better results for your clients, and the better you get, the more you can justify higher prices. After all, you can help save or make your clients a lot of money when you’re fantastic at what you do. That’s why business is the ultimate meritocracy. If you get amazing results for your clients, you deserve to charge accordingly!
But here’s the problem: many women in business vastly underestimate their value to clients. Sometimes you need to do research and quantify it for yourself. For example, advertising specialists might look at the return on investment their clients are getting for the ad money they spend. Coaches can quantify whether they’ve helped people to lose weight, find love, or hit other personal goals. What value would your clients put on something that’s priceless?
Don’t forget that your knowledge didn’t come to you for free. Your clients are borrowing your years of education and experience so they don’t have to learn on their own through trial and error. They’re paying you to shortcut their success and give them the best results possible. Your investment in mastering your craft saves them time and money. Remember to factor that in to your pricing. Experience gives you the right to charge more for what you offer, especially when you create results that have an impact on your clients’ time, income, happiness, love life, health, security, or desire for a better life. I’ll teach you how to (ethically) tap into these desires in the Marketing section.
After looking at all the clear signs that you should increase your prices, ask yourself the following questions:
And then take action! Add a new service to your website, set new prices, or set some new boundaries for clients.
Amazing results can attract a higher price.
The simple way to break the news about your new prices is to announce them – just tell people the new prices. The more complicated way is to second-guess them a million times, chicken out of telling anyone, backtrack a few times, vacillate between the old and the new prices, and then finally bite the bullet and feel like vomiting every time you say your prices. Ask me how I know this.
The method for picking a new price is the same as for setting the original one: you just pick a number. I’ve muscle-tested numbers, I’ve used random number generator websites, and I’ve literally flipped a coin. You could add 10 percent (or any percentage) to your current packages or pick a number that’s visually pleasing or meaningful to you.
Stop thinking there’s a special pricing strategy; most people are winging it (and second-guessing it) as much as you are! You’ll realize pretty quickly if there’s a mismatch and you can tweak it accordingly. There are no rules about how often you can change your prices – there’s no pricing police!
The most important thing to deal with is the fear. You’ll convince yourself that nobody will ever pay your new rate and that taking this step will spark a downward spiral into bankruptcy and homelessness. Then (trust me), one day, someone will pay the new price, and you’ll feel relieved for a while – until it’s time to increase it, and the cycle starts all over!
It’s normal to feel nervous, so always remind yourself that it’s okay to make money doing what you love. You’re allowed to be successful, charge more than others in your industry, and have a wildly profitable business. You have to believe in the value you’re creating for your customers and then be unattached to the outcome. Remember, some people will complain, some will think it’s a steal. No big deal. To be really chill about this, you need a plan, so I’ve got some specific advice for:
Some of your clients are getting an absolute bargain, and it’s high time to increase your prices. How does that sentence make you feel? Terrified or relieved? It’s natural if you’re scared about losing some clients. And I’ll be honest: some people won’t want to continue working with you at your new price. But that’s okay. Some customers happily shop at both Target and Armani, but that’s not usually the case. You can’t force a Target customer to pay Armani prices, and vice versa.
Most women feel that charging more excludes people, but the truth is that you can’t serve everyone. As you charge more for your work, you won’t be able to take all your customers with you – especially the ones you served during your entrepreneurial apprenticeship (your Target days).
We often think that, if we price ourselves out of someone’s budget, nobody else will help them. But this ‘savior’ syndrome can burn you out, make you feel resentful and cynical about your business, and limit the impact you can truly make in the world because you have no extra energy to give.
If some of your customers are no longer aligned with your pricing, it creates space for someone else to serve them at rates they can afford. It creates opportunities for new people in your industry to learn their craft and become leaders in their field. You’re no longer an apprentice and, since you’re your own boss, you have to promote yourself and give yourself a higher salary.
Maybe your expertise has increased rapidly since you first started out. Or you’ve invested a ton in your business and personal growth, so you’re adding even more value to your clients. Or, now that you’ve been working on your money blocks, you simply know that you’re worth more. You might even realize that these clients are costing you money or other opportunities. This is especially true if you find yourself feeling resentful or that the energy exchange between you is unequal.
Guess what? You’re not trapped. You’re allowed to charge more, no matter how long you’ve been working together. You didn’t sign up for a lifetime of servitude.
Below is a ‘script’ for communicating a new price to an existing client. This works best for clients who are coming to the end of an agreed timeframe or project, but you can adapt it for those open-ended clients too. You can do this over the phone (which is best) or via email (which is still okay). Either way, you can read it out word-for-word so you don’t get nervous. (You can download all the scripts in this section at Chillpreneur.com/Bonus. You can customize them to suit your particular circumstances.)
Before you talk to your client, read my guidelines for successful money conversations below.
Before we get started today, I just want to remind you that your current package with me ends on [date].
[Pause for a moment and let the client speak.]
I’m really proud of the work we’ve done together, including…
[List some of the things they’ve achieved as a result of your work together, particularly as it relates to increased revenue or success for them. Pause for a moment and let them respond.]
I’d love to continue working with you to take your [business/life/health] to the next level. You’re such a great client to work with!
[Pause to let them respond.]
I’m discontinuing this current package, but I’d love to transition you into my new [awesome package name], which I think is much more appropriate for where you’re going in your life/business.
[Briefly explain the new benefits. It genuinely has to feel as if you’re graduating them to the next level, not just charging more for the same thing.]
Because you’re one of my existing clients, I’ll also give you [a VIP day, free access to another program, or some other benefit] as a thank-you for renewing your contract.
The investment for the new program is $x, and I have a payment plan available. I’ll send you an email that contains all the information you need to renew.
You don’t have to decide today – this is just a heads-up before the current package ends. Do you have any initial questions?
[Definitely stop talking here.]
Okay, I’ll send you an email about the new package soon. Now, let’s get started with today’s agenda. Are you okay if we go an extra [amount] minutes to make up for the time we spent on this?
Note that I recommend offering a bonus when you increase your prices, as a way of rewarding repeat customers. Remember the warning I gave earlier: don’t be too generous and over-deliver in an attempt to ‘bribe’ your clients. The result they get by working with you is the reward. The bonus is just a cherry on top! The bonus you offer can be extra time with you (not too much), access to another course or program you offer, or some additional things that don’t cost you too much time or energy (which just perpetuates the problem).
To come up with the most appropriate bonuses, I create a matrix with perceived value on one axis and my investment (in time, energy, and money) on the other. I brainstorm everything I’d like to offer in a package and plot it all out. Then I pick one or two bonuses that make the most sense. You’ll find the template for a blank matrix among the book bonuses at Chillpreneur.com/Bonus. Think win-win. Don’t give away the farm, as that will defeat the purpose of a price increase!
After the session, you can follow up via email with the details of your new package (have this pre-written), and during the next few meetings, remind your client of the deadline for both your rebooking incentive and your price increase. Every single time, follow up with an email that contains the information they need to sign up. Some people want to take action right away. Make it easy for them to give you money.
In your last meeting with your client, ask for the sale. It’s totally okay if they say no, but if you don’t ask, you’ll never know!
People you haven’t charged before might be ones you’ve been bartering with, have been working with in exchange for a testimonial, or just feel bad about charging. Either way, get clear about the value you offer and the value of a client having invested in themselves. Receiving something for free versus paying for it results in a totally different energy and accountability. Give clients the gift of investing in themselves!
The script for this is pretty much the same as the one above, with a few variations.
Before we get started, I just want to remind you that your free sessions with me end on [date].
I’m really proud of the work we’ve done together, including…
[List some of the things they’ve achieved as a result of your work together, particularly as it relates to increased revenue or success for them.]
I’d love to continue working with you to take your [business/life/health] to the next level. We seem to be a great fit.
When our free sessions end, I’d like to transition you into my [awesome package name], which I think is a great next step for where you’re going in your [life/business/health].
As a special bonus for coming on board as an official client, I’ll also give you [a VIP day, free access to another program, or some other benefit] to reward you for committing to your success.
The investment for the program is [amount], and I have a payment plan available. I’ll send you an email containing a link to all the details you need to sign up.
You don’t have to decide today, but do you have any initial questions?
[Stop talking here.]
Okay, I’ll send you an email soon. Now, let’s get started with today’s session.
In theory, this is the easiest one. Just stick your new rates on your website and new clients or students will pay the new prices. But as we’ve discussed so many times in this book, easy on the outside means nothing when it comes to money. Raising your prices for people who haven’t worked with you before is actually a really great sales opportunity. I’ve used this as a brilliant strategy: both with one-on-one coaching services and courses.
It’s totally fine to increase the price as your results, quality, and value increase. My Money Bootcamp has had five different price points as I’ve added more value to the course! Each increase provided an opportunity for a ‘Get it now!’ marketing campaign, so don’t increase a price without a big announcement that gives people one last chance at the old price.
If you’re a service-based business, send personalized messages to anyone who has expressed interest in your services in the past year. It might be the perfect time, and they’ll be bummed out if they’ve been quietly saving up to work with you and didn’t know about your price increase. Send them a simple message like this:
I’m touching base about working together this year. I have a few spots available on my calendar and want to let you know that my prices are going up on [date].
I’d love to help you achieve your goals, and I think we’d be a great fit because [explain why].
If you decide to sign up before [date] you’ll get the current price of [amount] and, as a special bonus, I’ll also give you [a VIP day, free access to another program, or some other benefit] to reward you for committing to your success.
The current investment for the program is [amount], and I have a payment plan available.
You’ll find all the details and booking information for my current prices here: [link]. After [date], the new price will be [amount].
Would you like to have a brief conversation about working together? You can book a time to talk on my calendar here: [link]
Honestly, you don’t have to overcomplicate it. Just be really clear that your prices are going up and they have to take some action to work with you at your old rates.
Let’s talk about a mindset shift you need to make before increasing your rates. You might be saying, ‘Nobody will ever pay this new price,’ and if you believe that, you actually might struggle at first.
I noticed this in myself when I offered an ‘early bird discount’ for my Money Bootcamp. I told myself, Nobody will pay full price for this. And guess what – nobody did! Well, hardly anyone. Ninety-five percent of people took the early bird offer. At the next launch, I told myself: This is amazing value, even at full price, and that time, just 70 percent of registrations were early bird. Nothing had changed except my belief that it was still worth it at the higher price. You might need to go back and read client testimonials to remind yourself of the same thing.
You don’t have to make huge price jumps. You might need to acclimatize to new price points every few months. There are no rules, it doesn’t have to be annual, and you can do it whenever you like!
In your journal or in a conversation with an entrepreneurial friend, answer the following questions:
Then take action based on your answers!
You’re the boss! Give yourself a pay increase.
You might really resist the idea of raising your prices and procrastinate about acting on this chapter. Just remember that you’re in business to make money, and you’re allowed to profit from your skills and talents.
Money is power. The more collective wealth we have as women, the more independence and control we have over our own lives. When you make more, you pay more taxes into the system to support others and reduce your own burden on public services. You can support political candidates who can enact change on a large scale, and you can put your money behind creating a better and more just world for everyone.
The world will become a much better place when more women prosper financially and are financially independent, including you! Charging what you’re worth is the first step.