How Do You Know When It’s Time to Raise Your Prices?
How would you know when it's a great opportunity to raise your prices? Watch this video and find out the 6 essential red flags that will tell you when it’s time. As a maker, making the level of progress that you wish to have is a need. You should utilize techniques best for your common abilities. It is all about being happy, healthy and wealthy! Success is about delivering value and getting rewarded for it. With this, you can invest in your own personal growth or your company's growth. Watch this so you can live the life you want to have.
What You Will Learn In this Show:
- How to be happy, healthy, and wealthy - 01:35
- Six criteria to know when it's time to raise your price - 05:47
- Biggest mistakes that creative business owners make - 11:16
Want guidance on how to do this step along with the tools you need? Get this and more in your FREE Guide, "21 Tools to Increase Sales in Your Creative Business".
Key Take Aways
How do you know when it's time to raise your prices? How can you tell?
Well, that's exactly what we're going to be talking about here today.
For those of you who haven't met me before: My name is Una Doyle. I'm the founder of creativeflow.tv. I work with creative business owners and I help them use the strategies that are best for their natural strengths and talents. I help them build the most creative ways and working habits that attract best teams around so that actually running a creative business can be fun.
I can help you have the time and financial freedom that you want. And it's all about getting into a creative flow. It's really all about being happy, healthy, and wealthy.
I just want to talk about the fact that I think pretty much nearly every client that I've worked with ended up raising the prices as a result of working with me. In fact, I was doing some research and found, something for you, a fantastic freebie that you can check out! When I was doing the research and just in this one conversation with this person, they went away saying, "I'm actually pretty happy with my business and what I'm achieving." They actually went away and they said, "Yes, I'm going to raise my prices," and I saw them later that day post on Facebook saying that they were raising their prices.
Yet there are many ways that something can hold people back; a lot of different ways. And this is why it's so important. Because, I talked about being happy, healthy, and wealthy.
So, if you're not charging enough, if you're not earning enough money, then that affects your levels of happiness because that's going to cause you to be more stressed. And quite often, when you're working with clients who aren't paying you enough for the value that you deliver, that can be really disheartening.
Quite often they're also the same clients who take up loads of your time. This can be really stressful because they're kind of penny-pinching and creating little conflicts over the most minor things, not really letting you do your best work. This can affect your happiness levels and it can really affect your health because when you're working with these clients, they tend to take more of your time and that is less time for you to exercise, to relax and destress, and to spend time with your loved ones. All the things, all the self-care that you might want to do to have a more balanced life and to have the energy that you need to be able to achieve your creative business goals.
And then when it comes to being wealthy, it's pretty obvious.You need enough money coming in to pay the bills and to have the lifestyle that you desire and that you deserve. I'm not talking about ripping people off here by that! I'm all about delivering value and getting rewarded for it.
Not only do you need to have the finances to pay your bills and to pay for the lifestyle that you want to have, you also need to have money to be able to invest in growth. To invest in your own personal growth and in the growth of your business. Now, whether that might be buying a new system or some new equipment or investing in some personal growth program or business course or actually just having an emergency fund just to have money put aside for those lean times because you know what, recessions come and go. It's really important to be able to have that financial buffer; to have freedom to invest and of course, to live the kind of life that you want to have.
Because the thing is, if you're going to be working for yourself, running your own business, then there have to be some benefits to that because it's a lot work. It's not just doing the doing. You've got to be a business-person as well. And of course if you want to invest in team members whether that's outsourcing using freelancers and or perhaps paying your staff. You don't want to be in a situation where you're kind of running the business for the staff's benefit. You need to be making sure that you have the right kind of staff who are really adding value and actually making things easier for you not making things harder. I sometimes talk to people who have a team and they're like not having any of the benefits.
How do you know when it's time to raise your prices?
Criteria # 1 Every single prospect says yes
That is a clear sign that you are not charging enough for your services. There's got to be - I mean for a start, and it doesn't matter how you price it some kind of negotiation. If they're just kind of going, "Oh yeah," and they're not even having to think about it, then, maybe, it's because you've packaged things so that it’s such an amazing value for them - and yes, you think you are charging enough but in my experience that doesn't happen very often.
Usually, if everybody is pretty much saying yes, it's because you're not charging enough and they're going, "Wow, this is real bargain." In fact, you might get one or two people who would actually say to you,"Well, you really ought to be putting your prices up." If they're saying that to you, listen to them particularly if they're the people who are paying you the money. If they say, they're feeling guilty because they think this is not enough. Listen to those signs. That's the first criterion.
Criteria # 2 When you're not covering all your outgoings plus the extras apart from your day-to-day
If you're not covering all of those, you just might think to yourself, "Well this is because I don't have enough clients." But I wonder if, having worked out the details you find that you had enough clients, would you actually have the time to serve them and serve them well? A lot of the time, if people put their prices up, that actually makes it easier for them to get sales. That's a real myth that if you charge less it would be easier to get new clients. Quite often the opposite is true. I know it sounds bizarre but trust me.
Criteria # 3 You're working way too many hours
Now, this could be because you don't have enough clients and you're working loads of hours marketing yourself trying to get new clients or it could be you've got all the clients that you need but you don't have the time to serve them. The obvious thing to say is of course, "Great! Then you can start having some freelancers and some staff come in and help you." But if the answer to that is, "Oh, but no. I have all these clients but I still can't afford to have that help.” You definitely need to raise your prices.
Criteria # 4 If you are attracting crappy clients
Chances are, you are attracting them because you're not charging enough. Because the thing is, the higher caliber clients, they value their time more than the money. They know time is irreplaceable. But you can get money. So, you can always get more money but you can never get more time and they know that. They will not waste their own time or yours because they value their own time, they will tend to value yours as well.
Crappy clients don't value their own time and they don't value yours. They quite often don't value their expertise and therefore they don't value yours either. So questions to ask yourself will rhyme if you are experiencing crappy clients. Put up your prices and they will go away. You can let somebody else deal with them.
Criteria # 5 Feeling a desire to do better quality of work
I know from every single creator that I work with, and I know for myself as well, when I'm doing my creative stuff that we tend to want to do really great work. We want to do work that we can be proud of; that causes us to hold our heads high; that we can share with our peers and feel really good about.
If you're not in that position, maybe it's because you're not able to produce that kind of work because either you don't have the time or because you don't have the resources or both. So whether you want to bring staff in, or have the money to do research, or to simply be able to do whatever it is that you're doing, you just feel you always need to have more time and resources to be able to do a better job.
I remember when I sold the biggest package that I've sold to date. Do you know what I was most excited about? It wasn't the money. I was so excited about, "Oh my god I'm going to be able to really help this business because they're paying me enough that I can really get in there and make a difference.” So I know that you probably feel the same about your creative work too.
Criteria # 6 You want to outsource and you want to build a team
Look, one of the biggest mistakes that creative business owners make is that they charge the same to private clients as they do for their freelancing work. So a lot of times people will start off freelancing. They will work through agencies. They will work on other people's clients. That is what I would call freelancing. But when you're working with your own clients, you have to rely on the fact that you can't work five days a week purely on delivering to clients. There is time that needs to be spent on running the business. And so you have to allow for that time, and you have to align for the business costs. And quite often people don't do that.
If you want to be earning a living as a creative business owner, you will want to grow. If you want to be able to grow your team, you will want to be able to do a better work. And you have to have enough money coming in to do that.
So do you resonate with any of these criteria? Which are the ones that stand out to you like, "Oh wow, yes, I'm experiencing that." Share in the comments. I want to know and I will come back and respond to your comments. So I would like to hear about what you think.
Have you found today's show valuable? If so, please remember to share this out. Click the like button, and comment, and let me know. It's so helpful when I get feedback because I want to know what's working for you. What do you want to know more about? What have you found useful? What have you implemented? It's awesome when I have people post back and say, "Hey, I've implemented this and I got more new clients" or "I did this and.." Yeah, it's just fantastic! I'd love to hear that from you so I will come back and check the comments later.
For now, I gotta run. It's time for our food. Yay! Everybody have a fantastic productive week. I'm here every Wednesday 4:30 GMT, 11:30 AM EST. See you again next week, bye!
About the Author
Una is a Business Coach & Strategist for Creative Services Providers (Design, Animation, Marketing/Digital Agencies, etc.). She helps them to stand out from the crowd confidently & profitably so they can attract high-level, 'Ready to Invest' clients, doing creative work that fills their hearts with pride - WITHOUT selling their soul or adding extra workload.