Hello, you beautiful business owner. You how exciting that you're at a time where you're thinking about raising your rates now. Is that scary? Yes. Are you wondering if you're worth it? Probably. Is it bringing up a whole bunch of mindset blocks? Oh, I'd be shocked if it didn't. So in today's episode, let's talk about how to raise your rates, how to choose a rate that you feel is in alignment with your offer and then how to take action steps forward.
Raising your rates is undoubtedly the fastest way to make more money.
That is true.
Especially right now in the current economic climate. Oof. Not my normal kind of language that I use here, but the way the world's going, everything costs more money. We're running a community event here in my neighborhood and we had to address the crowd to say, you know, we can't get you a good dinner for $25 anymore.
That's just, you know, that's just the way of the world. And I'm betting. If you're listening to this podcast, you probably enter this world with a lot of love.
You probably have a service-based business that, you know, has the power to change the world. That helps people that helps them make more wealth or helps their health or helps their family or helps their life and helps them become a more joyful person. And I bet there are voices in your head every now and then telling you that you should be doing this for free, or you should be doing this for cheap or that you're wrong to be charging money.
If you've had any of those sentences whispered to you from you inside your head, know that you're not alone because that is, that is so, so common. But the fact is you need to make money to keep doing what you're doing, right? You need to charge so that you can pay the bills and when the cost of everything is going up around you. I think it's probably pretty safe to say that a lot of us are raising our rates this year.
And that's just the way it is. So how are you going to do it? How are you going to do it in a way that feels good?
Well, I'll tell you this. Typically having a higher price point means better clients. And a lot of people will tell you that it's obviously. Anecdotal, I don't have firm evidence on that. But.
It is pretty widely agreed that. Higher ticket clients are typically more hands-off they know that they are paying an expert. So they'll defer to the experts knowledge. And when folks have money on the line, they show up for themselves and they have to trust you. Otherwise their money will have been wasted.
Right. So it's pretty widely agreed that when folks pay more money, They are better clients and easier to deal with. So strange. Right.
There's also many instances where charging more actually makes you sell more. Let me tell you about my friend. Let's call her Katrina. I don't know. That's a pretty name, first name that came to my head. My friend, Katrina had a business and I begged her to raise her rates because I knew that she was undercharging and the industry that she was in was working with kids.
And.
When you're working with children, you need their parents to feel safe. And if you are the cheaper provider on the block, there's going to be a voice in that parent's head that says is my kid safe here? Right. So she was. Undercharging. And she was doing it out of the goodness of her heart. She wanted to be accessible to more families, but it really wasn't enough to keep her business going. And she resisted, she resisted and then decided finally to raise her rates and she actually ended up selling more.
She sold more when she raised her rates. Because her new rates were in alignment with what her ideal client was expecting.
Is there a chance you're undervaluing yourself? Is there a chance that by raising your rates, you're just pulling your rates up to where they should have been all along. Something to consider.
I know the decision to raise your rates can feel really monumental. It can feel really, really big, but I also want to remind you. That no decision is permanent. You could always lower them. You could raise them again. You could raise them and then run a promo with a discount that puts them back to where they were before you can always change them.
So even though this decision might feel big and scary and heavy to you right now, remember that you are always allowed to change your mind. If you made the quote unquote, wrong decision. And I say that because they don't actually believe there's any wrong decision, but if you were to make the wrong decision, You could always go back.
So some things to consider while you're playing with new numbers, new price points that you could sit at is, is the result worth the price point in the eyes of your client?
So when I work with service-based business owners to help you get clients from Instagram in my program, magic marketing machine, one of the things we talk about a lot is the ultimate result. Your clients get that ultimate transformation. How is their life better after they work with you? And it's really. Really important that the amount you're charging. Is worth that ultimate result. In the eyes of your client. .
And that's why it's really important to be very clear on what that result or transformation is. That is at the end of the day, the basis of all of your marketing, it's going to be the most powerful thing in your marketing is what's the result or transformation. And that's why we talk about it so much inside magic marketing machine.
So you really want the price point to be worth the result in the eyes of your client. I don't care if you think it's worth it. I don't care if I think it's worth it. I need to know that you're. Client wants that result.
And is willing to pay for it.
.
You also need to think about who your ideal client is and where they're at right now. Where are they at mentally while they are making this decision to work with you? So for example, say the service you sold was you write resumes for new college grads to help them get their first job. So the ultimate result of your service is land an amazing job, despite your lack of experience.
Ooh. Okay. This has pretty solid positioning already. Now say you price that service at $10,000, we could argue that it's worth that because when you get their person, their dream job, they are making 80 K a year say. Right? Okay. So $10,000 sounds like a drop in the bucket.
If you're going to land them an $80,000 job. But when we consider where this ideal client is mentally and a quite actually literally. In the moment when you're selling to them, $10,000 is way too much money. This is a new college grad. And they don't have a job, so we have to align what you're charging with what they're willing to spend. In conjunction with what the result is going to be worth to them.
It's a bit of a balancing act in that scenario.
Quick recap, the result has to be worth the price point and the price needs to be in alignment with your ideal audience.
And you have to have crystal clear messaging along the way in order to communicate.
That result to them. And you also have to have confidence in the number you choose and confidence selling. This is another thing I work on with my clients all the time, because if you secretly think that what you're charging is too much money. That's going to show up. It's going to show up on your face.
When you're sitting in sales calls, it's going to show up in the words you choose to write your captions. It's going to show up everywhere. It's going to show up with you kind of undercutting yourself when you're talking about it, when you're pitching your offer. So you need to believe in that price and you need to believe that it is worth it and do what it takes to build up your confidence in selling yourself.
And listen, you can watch the free training that's linked in the show notes. If you feel like slimy about sales, I actually have another podcast episode. Episode about this.
It's called how to sell without the slime. You don't need to do anything that you're not comfortable with. And we don't need to use masculine sales tactics.
can sell in a way that feels good and you should sell in a way that feels good because that confidence is going to help you land more clients.
Here's the sneaky thing that you can also remember when you're in situations with clients and you've recently raised your rates. They don't know that they don't know what your old rates are. They only know the rate you're telling them. Right. So they only know the rate you're telling them. And if it's in alignment with where they're at and it's totally worth the result, you're going to get them.
And you say that you position it that way. You have solid messaging to communicate that. Then maybe it's an easy yes. Maybe they go. Yeah, sure. No problem. It doesn't matter what your historic rates are. It just matters what's happening in this moment between you two people.
Already. I've got two more tips. And then I'm going to let you get back to the elliptical. Or whatever you're doing right now.
I own a social media management agency and I have for many years, so new social media managers and social media freelancers come to me often. And ask what's a normal rate. What is a regular rate for social media management? And I do not have an answer to that.
This is a relatively new industry and there is literally no industry standard. You can find someone online. Who's going to do your social media for 300 bucks a month and you can find someone online. Who's going to do your social media for 10,000 bucks a month.
There's a pretty wide range and the deliverables are completely different for everybody, but that's beside the point, there is someone out there who will buy. Whatever you sell for a low price point. And there is almost certainly someone out there who will buy what you sell at an extremely high price point, like top tier high ticket.
Take what you're doing right now in times of by 10 there's probably someone out there who's expecting to pay that maybe it's a corporation or a. You know, someone who's independently wealthy or it's a business or, or whatever, there's someone out there for it. Now you get to choose your rate. You get to choose whatever number you want from hundreds to tens of thousands, hundreds of thousands, even.
And no matter where you sit on that spectrum from hundreds or hundreds of thousands, you need one thing. In order for those people to find you. You need. Visibility. If you were selling something for low ticket, you need tons and tons of visibility so that you can have all of those sales add up and make you good money. And if you're selling something extremely high ticket, you need visibility so that you can find that needle in a haystack so that you can find that person who's willing to pay that super high ticket price.
So no matter what you're doing need visibility. When you work with me, we use Instagram for that. Maybe you want to speak at summit. Maybe you want to.
Use paid ads instead, but whatever it is, you need to get eyeballs on you. So you can find these perfect people. And so these perfect people can find you.
So at the end of the day, the question is how do you raise your rates? And the answer is. You just do it. You are in complete control. You get to make the decision. I hope I've given you some things to think about to try and find the right pocket, but here's a secret. Someone's always going to say it's too high. There's no getting around that you could be charging $10 and someone is going to say it's too high.
Let them. Just do as Mel Robbins does that's her affirmation. She just had a whole podcast episode on this and the Mel Robbins show. Let them let them think it's too high. You stay in your lane, get your visibility, hone your messaging.
Communicate your value and the results that you bring people. And you get to choose whatever rate 📍 you want.
Man. I love spending this time with you. Thank you for choosing to spend your time with me.. Thank you so much to everyone who has left five stars and positive reviews on apple and comments on Spotify. It makes my absolute darn day to hear from you. You can also DM me. I'd love to hear what you think of the show and what you want me to include on the show and what you want me to teach about. remember there's lots of free goodies down in the show notes, and I will talk to you next time.
