How To Raise Prices Without Losing Current Clients
By: Rachel Rofe

I recently asked on Facebook if anyone had any blog topic requests.

One person suggested writing a blog post on how to raise prices without losing current clients. I thought that could be pretty helpful for lots of people, so here we go. :)

First of all, I know this post doesnt apply to everyone. Not all of you have services.

But if youre wanting to earn money online, and you havent yet I strongly recommend starting by offering some services. Theyre the fastest way to earn money and theyll help you bring in revenue as you work on your longer-term income goals.

Some services you can offer:

CopywritingArticle writingGraphic designSEO servicesVirtual assistanceOffline marketing (working with small business owners)

Normally, I recommend starting your prices low. That helps you get feedback, work on your craft, and get testimonials.

For example, when I started copywriting my introductory rate was $1,000 for a letter. Now its at least $5k, plus royalties.

After you pay your dues, you can move upwards.

Heres an overall step-by-step strategy on how to raise your rates:

Step 1: Start with the end in mind.

First figure out the monthly amount of money youd like to be earning and how much time youre willing to put in for it.

For example, maybe youre OK continuing to make $3k a month but want to put in less hours every month

Maybe you want to earn $1k extra a month and dont want to change the amount of time youre working.

Figure that out FIRST.

This way youre not lusting for some arbitrary number youre determining your target hourly (or project) rate.

Youll have solid reasoning for what you want to earn and youll be able to feel more confident asking for it.

Step 2: Document why your services are worth more than what people are paying.

Start putting together testimonials, results, case studies, before/after pictures, whatever so that clients (and your confidence) have a reference point as to why you should be paid more.

(Well go over this more in a little bit.)

Step 3: Think of perks you can add on to your existing services.

If youre going to ask people for more money when theyve been paying less, theyre going to feel a sense of loss. You cant blame them for that you would too.

Is there something you can do that will make your client feel like when you raise your rates, theyre gaining something too?

To get you thinking about this, think about related things that your clients need when they purchase from you.

Here are a few examples:

If youre a writer, your clients will likely need their books designed. Or formatted and put onto Kindle. Or ranked higher on Kindle. Or theyll want blog posts to promote those books.

If youre a designer, your clients will likely need content to show off on their site. Or a Facebook page design thats congruent with their new look.

If youre a virtual assistant, there are probably tons of tasks your clients would love to outsource to you but dont think they can yet. Maybe its making phone calls for them, or writing blog posts, or look at this page for inspiration.

Someone who does eyelash extensions once asked me about this. My examples to her of perks she could offer would be perhaps a complimentary hair blowout, or eyeliner that works with the eyelashes, or a more flexible schedule (where people can come in without having to book so far in advance).

One thing most any client would love, for nearly any service, would to be able to have their service providers on call during certain hours, so they dont have to wait around.

You could also ask your client, What could I do to make your life easier?

Many of these perks cost money. The idea is for you to work these perks into your pricing so you end up still hitting your target rate while inflating the value to your client.

(This is another reason why its important to know your target rate.)

Step 4: Identify your clients ROI of working with you.

This return on investment might be monetary, like someone making $20k from a sales letter you wrote them.

It might be convenience. Maybe you saved them x hours.

Or perhaps its the convenience of having worked with that person for a while, so now you know their preferences.

Maybe the ROI is they feel more beautiful when they work with you, or your techniques help their long-term well being whereas other peoples dont.

When you dug up your documentation in #2 you should have gotten a lot of ideas.

Step 5: Think of taking precautionary measures.

After you do all this, your next step is to ask.

Theres major magic that comes from acting a little outside of your comfort zone.

But if you want a backup plan, here are a couple thoughts:

a) If you can take on new clients, take them on at your higher rate. This will give you a stable of clients, plus youll be able to to truthfully tell your clients youre worth X and people are paying it.

(Note: If you do this, make sure you change everywhere youve posted your rates before.)

b) If you cant take on new clients, start a waiting list. If for some reason your clients say no later on, youll have people you can go back to.

c) If you can save up some money before you go for the big ask, all the better. Thats not necessary but its amazing for your peace of mind.

I think it was John Carlton who mentioned always having 6 months worth of living expenses in the bank. Its a great rule of thumb to live by.

Step 6: Ask.

At this point, youve done a lot of homework. You know your target rate. You know why people should work with you and the value you bring to them. You know how you can add even more value to your services so that youre approaching things from a win/win perspective, not just a win on your end.

By the time youve done all this, you should feel very confident your services are worth the price increase.

So ask. Say something like:

Id like to discuss our working together. Ive loved working with you so far, and judging by your feedback, Im pretty sure you have too:

Mention feedback here. [Youve told me I was the best writer you ever hired. You made $30k from my sales letter. You said Ive done the best job anyone else ever has. Youve lost 20 pounds. You said I got your voice. I saved you 10 hours.]

Since we started together, Ive been restructuring my business so its even better for you. Based on [what you/what other clients I work with] have said, I decided to add x services into my package. This helps you save [time/money/whatever], plus makes it easier for you overall.

I am also changing around my pricing structure. My rates are going from x to x effective x, and I am becoming much more selective about the types of people I work with.

I chose this rate very carefully, making sure your ROI was still high:

Mention ROI here. [You make $20k each time I write you a letter. You get x hours saved with every x you pay me . Youve told me you feel more confident than you have in years, which is priceless.]

and then of course, youll also have the added X benefit. [Mention what you came up with in paragraph 3.]

Like I said, Ive thought this out carefully to make sure you have a positive return on investment from working with me. And if for some reason this doesnt work for you, Ill be happy to refer you to someone who might be a better fit.

And as a side note, Ive been thinking about your business, and I also think I can help with [mention something here].

If you have any questions, let me know. Im looking forward to an even brighter relationship together. :)

Step 7: Be okay if they say no.

If you state an email well enough, from your clients perspective, many people will understand.

Others might not.

Some people only care about the bottom line.

(Theyre usually not as fun to work with.)

There are a couple things you can do:

a) You can ask your client flat-out, What would make it worth it for you to pay me x? (At this point you have nothing to lose.)

b) If you really need the cash, you can do a close-out special and offer prepaid blocks of time to your current clients as you hustle to find new clients.

c) Be prepared to stick to your desires even when its tough.

If youve already done the prep work and you know your services are worth charging more, then hold to that. Know your worth.

Youve found clients once. You can find them again.

Ive found that whenever Ive held to my desires the universe has supplied me with everything I needed to fulfill them.

(When I wavered, not so much.)

That doesnt mean just stay put. Youd still take action towards finding new clients: updating your website, asking for referrals, posting job ads

But faith and self-assuredness go a long way too. :)