5 Reasons Why You Should Probably Raise Your Rates

If you provide a service, you’ve probably obsessed over what in the world to actually charge for your work. I see it all the time with coaches, consultants, writers, designers, photographers—you name it. If you own a business where YOU are the value given to your clients in the form of information or a service provided, then it’s straight-up hard to figure out what to charge. And sadly, the vast majority of service providers end up selling their talent and skills short and charging way too little… But I’m here to say no more! It’s time to raise your rates, friend.

I know it’s natural and tempting to think that lower prices will attract more clients, offer better value for your customers, and make your buyers happy. If you think about it too long, you know that lower rates = a perceived more alluring edge on your competition. After all, if you see a bag of flour that costs two bucks less than another at the grocery store, you’re going to go with the less expensive one, right?

But rather than calling you a bag of flour, let’s instead call you a really, really nice bottle of wine. A 50-buck bottle of cab is something I know is going to be well made, delicious, and high quality. Sitting on the shelf next to it is a $10 bottle. If I’m hosting a nice dinner party, there’s no way I’m going with the cheaper bottle of wine because I know its value will be lacking in comparison to the $50 bottle.

I’m here to tell you that you’re the $50 bottle of red. Your service is valuable enough for you to charge rates that allow you to not only profit, but save, invest for your future, grow your business, and further your skills in your industry. You charging a more premium rate isn’t an inconvenience to the right clients, and I want to share why charging more is actually HELPFUL to your clients or customers.

TLDR? You’re likely undercharging, which waters down your experience and expertise… and value. Luckily, it’s easy to fix by simply raising your rates.

5 key things to consider before you raise your rates

1. Higher prices attract better-quality clients.

Of course, this is dependent on your business model and offer. But for the most part, those who are willing to invest more have less time to nitpick, micromanage, or devalue your services. Have you ever seen the meme that says something like:

$200 client: “Okay, I just need to run this by our accountant and make sure this is an investment that makes sense for us right now. We need to crunch all of our numbers to be certain we are all in and willing to fork over this much money.”

$2,000 client: “Invoice paid. Thanks!”

I mean… it’s true! Those who pay, pay attention. They understand that they are investing in value and in a service that will benefit them and their bottom line in the end. Those who want to nickel-and-dime their way through business expenses will get what they pay for, which is often a lower quality service.

2. Your clients will value what you have to offer.

If you raise your rates, you may part ways with a few clients who aren’t willing to adjust to your new fees. Which, surprise surprise, is actually a good thing! Exclusivity wins, and you’re not for everyone. By charging higher rates and likely working with fewer people, you’ll be able to dial into the needs of your clients in a whole new way.

3. Your clients will get better results because you show up in a new way.

Listen, I’d never tell you to charge a million bucks just to see if you get away with it. What I do think is imperative, though, is charging a rate that emphasizes the value you provide others. And usually, that number is higher than we’d ever expect.

Something really cool happens when you go there, though. Say you double or, heck, even triple your rates. The times you phoned in your work (because we’ve all been there when we’re underpaid!) simply won’t be a thing anymore.

There’s this psychological shift that happens when you raise your rates. It creates this desire to rise in integrity alongside your new numbers and provide the absolute best service possible. This doesn’t just mean performing well on a day-to-day basis. It also means investing in further education and professional development so that your continued growth measures up to the rates you’re charging.

Guess what? That’s a MAJOR benefit to your clients and their businesses. You showing up as your best self allows them to get their money’s worth, and then some.

4. You offer better support to your clients.

When you raise your rates, you’re able to work with fewer clients. Think of it as hiring a private trainer vs. going to a workout class with 50 other people in attendance. You’re going to get much more personalized fitness advice with a one-on-one trainer than you ever would in a big exercise class.

The same goes for you and your clients. By taking on fewer clients at a higher rate, you can offer more attentive support and communication to meet your clients’ individual needs. Again, that’s a huge win for your clients, big time.

5. You deserve to be paid for your time, effort, and results.

Finally, and maybe most importantly, it’s okay AND important to embrace your self worth. You are valuable. The services you provide are valuable. The fact that you have gotten yourself and others’ results in your field of expertise is valuable. So, yes! You deserve to be paid enough money to turn a profit, save for your future, and enjoy your life!

As sad as it is, we are usually the first people to discount our own worth. So whatever you’re charging (or think you should be charging), I want you to take that number and tack on at least 50%. So if your hourly rate is currently $100 per hour, it should probably be closer to $150+ per hour.

Yes. Really.

Raising your rates gives you the freedom to spend the time making sure that every single one of your clients’ needs is addressed, their unique challenges are overcome, and they get the best possible outcome from your work together. And that’s a win for all parties.

—

Think you need to reconfigure your pricing suite or evaluate some other piece of your business that’s not working, but don’t know where to start?

Click here to purchase our ‘Ultimate Price Increase Plan’ – a 25+ page document that walks you through each step to take in order to raise your rates with confidence.