One of the things I consistently tell my coaching clients is to immediately raise your prices. Once I drastically raised my consulting fees, I tripled my client satisfaction and quadrupled the quality of my average client (whoah, sorry, some math happening here….).
What I mean by this, is that once I exponentially raised my consulting fees, and combined all of my most valuable systems, services & knowledge into a signature program, I was able to charge five times as much (for the same services) and my clients ended up much happier and got infinitely better results after working with me.
The reason for why this occurred is not obvious and goes against most of the way that people think about pricing, but it is actually very simple: Your best, most ideal clients want the MOST comprehensive solution that you offer, and they EXPECT this solution to be an investment in their business growth, not a “cost” or “business expense” that must be made up or budgeted for.
Here are four reasons why when you significantly raise your pricing, everyone wins.
Reason #1: What You May Think Is “Expensive” May Not Be What Your Best Clients Think Is Expensive
A great way to explain this is by using the Airline Industry as an example. Myself personally, when I travel, I will not spend the $1,000’s of dollars it takes to sit in first class. Too me, it doesn’t make sense to spend 5-10x the amount, just to have a little more leg room and a hot meal. But, every single time I board an airplane, the first class seats are filled with people who did think that it was worth it. Not only do they have the money to purchase a premium seat but, they determined that the investment in their comfort was well worth it. Don’t ever think that just because you think something is “pricey” or “too expensive” that someone else will think the same.
Bottom Line: Never, ever price your services based on what you feel is a lot of money. Recognize that there are many, many people who are willing to pay a premium price for the best service or solution that is available. Be that solution.
Reason #2: Your Best Clients Expect A Premium Solution To Be A Significant Investment
Let’s stick with the examples and use the automobile industry. Let’s say you’ve done well financially (solid work) and you’re in the market for an imported, high end convertible with over 400 horsepower (Nice!). You are not going to expect this car to be inexpensive. Odds are, you won’t even compare your different options based on how much they cost. What you’re going to do is find the perfect option for you based on how great the car makes you feel when you sit in it and look at it. You expect the car will be expensive, and you expect to get an incredible amount of value out of it. It’s exactly the same thing when it comes to business. You’re premium, best customers will demand the most comprehensive solution possible, and they’ll expect it to be a significant investment. Premium clients demand the solution that will solve their problem and fulfill their need.
Bottom Line: People that are very successful understand that real solutions are supposed to be significant investments.
Reason #3: Raising Your Pricing Automatically Attracts Premium Clients
I’m done with the examples, for now, as this one is fairly straight forward and piggy backs off of Reason #2. Premium clients are used to spending a lot of money on the best of the best. They don’t respond to “deals” and “price cuts.” They respond to comprehensive and complete solutions to their problems. If these solutions are not priced appropriately, premium clients will immediately become skeptical and will not work with you. Successful clients understand fully that massive value does not come cheap. If it is cheap, they’ll quickly understand that it’s pretty much impossible for them to get much value out of what you offer.
Bottom Line: Premium clients are repelled by low prices and low prices attract low quality clients. High quality clients are attracted by premium pricing.
Reason #4: High Prices Help Clients Get Better Results
Ahhhh, back to the examples, my bad. This one is actually a life experience of mine, so a little different. About 5 years ago I signed up to be a member at a “discount gym chain” where I was charged $19 per month for my membership. At the time, I was very pumped about this, “$19 gym membership!!!!! Whoop!” Guess how many times I went to the gym that year? You could count them on two hands. Guess how many months I paid for? 12….. I got no results, was never motivated to go, and always told myself “It’s just $19 per month, keep the membership active and go next month.” It didn’t happen.
A little over two years ago I decided I actually wanted to improve my fitness. The discount gym chains weren’t going to get me again. I looked around at what was out there and decided to enroll in a “High Intensity Training Beginner Program” at a local gym. The program was not a gym membership, but only a month long group fitness program where we met 3 days per week and learned the basics of working out in a “High Intensity Setting.” It cost $1000 or the equivalent of over 3 years of membership dues at my “old gym.” Guess how many times I went? 12. Do you think I got results? The best I’ve ever achieved in a 30 day period, by far. Do you think I signed up for a monthly membership at $175 per month directly afterword? You bet I did, happily.
I’m still a member to this day and go between 2-4 times per week. Because I was paying a lot of money for a premium product, every single time I thought about, “skipping a class” I then immediately thought about how much money I was losing. This motivated me to go every time. Eventually, going became a habit and the habit paid off. It works exactly the same way in business. Low pricing equals low motivation and drive from your clients which leads to no results. High pricing leads to massive motivation and action from your clients which leads directly to amazing results.
Bottom Line: High prices basically force your clients to take action and become completely accountable for their success.
Those are just four of the reasons you should immediately raise your prices. I literally could come up with dozens more. Hopefully this post inspires you to dramatically raise your pricing structure. If you do, I can guarantee the quality of your clients will increase, you’ll be much happier, your clients will get much better results and you’ll make much more money.