In this episode of The Breakthrough Babe Podcast, I’m showing you how to take the fear out of raising your prices. One question I get asked a lot is how to tell your clients you’re raising your prices. I get that it feels scary. You might worry that if you raise your prices, clients will leave you. Or you might feel a level of imposter syndrome, like you’re not worth what you’re charging. But I really want to crush those fears with you in today’s episode. Your time and your services are valuable, and you deserve to charge what you’re worth!
But before we dive right in, let me introduce myself in case this is your first visit. I am your host, Jen Gitomer, creator of Breakthrough Babe and author of the best-selling book, Sales in a New York Minute.
And it is time to make massive breakthroughs in YOUR life. With each episode, you are going to move past your fears of asking for the sale, learn to build deep connections that lead to meaningful business results, and master sales strategies that will help you grow and scale your business. Each week, I will be providing you with tips to avoid common mistakes in your business, teach hacks to help you grow and scale faster, and teach you to ALWAYS ask for the sale with confidence.
It is time for you, the Breakthrough Babe, to create more sales, income, and connections in your business. Let’s get started!
And today we’ll discuss how you can remove the fear of telling your clients you’re raising your prices. For all the details, listen to ALL of episode 45 of the Breakthrough Babe Podcast on your fave streaming platform.
Lowering your prices may actually be communicating the OPPOSITE of what you want it to. A lot of the time, when people see a lowered price, they’re not thinking, “Now is the time to get a deal on this.” They’re actually thinking, “Why is this price lowered? Is this offer less valuable? This must not actually be that good.”
If you’re thinking about lowering your price, let me ask you: Has the value of your offer gone down? If not, then don’t lower your price!
A lot of times what people really mean when they say something is too expensive is that they’re not perceiving the value as worth the price. Yes, it’s true that sometimes people really can’t afford something. But I want you to start retraining yourself to hear the “I can’t afford it” objection differently. What they might really be saying is, “This doesn’t seem worth the investment to me.”
So if people aren’t buying your offer, you don’t need to lower your price. You need to do a better job communicating the value of your offer.
When thinking about your prices, you need to think about your clients’ perceived value of your offer.
Here’s a way to illustrate this: when you want a cake for a celebration, you have different options. One would be to go to a local bakery. That cake is going to be more expensive. Another would be to go to a basic supermarket. That cake would be less expensive.
Now for me, I’m going to get the more expensive cake because I personally perceive the value of that locally made cake to be worth the price. But someone else might be perfectly happy with a less expensive cake. They may see that value as worth that price. And that’s okay!
The price of your services all comes down to perceived value.
When you know what your clients’ perceived value is, it won’t be so scary to tell them you’re increasing your prices because you’ll know they’ll still be willing to pay for your services.
If you don’t know your clients’ perceived value, the best way to discover it is talk to your current clients and ask them why they decided to work with you. Really pay attention to what influenced their decision. You can use that to communicate your value in the future.
Jen Gitomer gained her prowess in NYC as both a salesperson and award-winning sales leader for a Fortune 500 company. She left corporate America to fulfill her entrepreneurial dream. Jennifer helps entrepreneurs increase their revenue and profit through her proven sales strategies. In addition to the Breakthrough Business Babe Podcast, Jennifer co-hosts the Sell or Die podcast with her husband, Jeffrey.
She is the best-selling Author of Sales in a New York Minute – 212 Pages of Real-World, Easy to Implement Sales Strategies to Make More Sales, Build Loyal Relationships and Make More Money, the CEO and Founder of Breakthrough Business Babe and a master business growth coach. When she’s not working, you’ll find Jen planning her next Paris trip, taking a yoga class, playing tennis, or hanging out with her family and Cavalier King Charles fur babies.
You’re not going to know what your customers’ perceived value is (and thus, how much to charge them) if you don’t put yourself in their shoes. You need to take yourself on your own client’s journey.
My husband Jeff has done a lot of work with hotel staff. And he would often ask the staff how many nights they’ve spent in their own hotel. And most of the time it was zero! They hadn’t even experienced what it was like to stay in their own hotel! So how could they communicate the benefits of the hotel to their guests if they themselves hadn’t stayed there?
I challenge you to put yourself in your client’s position. Go through each level of your marketing and your services and ask yourself, “Would I buy this?” This is really going to help you learn more how to communicate your own value.
If you’re afraid of losing clients because your prices are too high, think of this way: If you charge twice as much and get half as many clients, guess what? You’re still making the same amount of money. And for LESS work! So trust me, it’s WORTH IT to raise your prices! It’s still a win for you.
Be sure to tune in to episode 45 of The Breakthrough Babe Podcast. And if you love this episode, don’t forget to take a screenshot, share it on your Instagram stories and tag me @jengitomer so that we can spread this important message to even more entrepreneurs and biz babes!