How to increase your pricing and why you should

Price, in short, is just a number correlated to the value you provide. Yet it can be a significant roadblock for many entrepreneurs. Understanding the importance of pricing and having the confidence to increase it can lead to significant growth and success without changing anything significant in your operations. So take it from me and consider these thoughts as to why and how you should raise your prices:

Money keeps the wheels turning

Money is a resource, not the sole driver of business. However, it’s essential to recognize that without sufficient revenue, a business cannot thrive. If your goal isn’t to generate profit, then perhaps a charitable endeavor is more suitable. Working for free isn’t a sustainable business model and no one invests as much energy in something for free than what they do something they’ve paid for. Therefore, having a clear money-making goal is crucial. The purpose of a business, after all, is to make money, enabling you to help people and create an impact effectively.

The day I doubled my prices (and got away with it!)

Increasing prices can be daunting, but it’s often a necessary step for growth. Early on in my own start-up phase, I was on a call with my business coach, incredibly excited to let him know I had meetings booked with five potential clients that day. My shock came when he suggested, “for fun, why don’t we double your price today”. Biting the bullet and trusting my coach I leapt at the challenge. My coaching package went from $1500 to $3000 in a split second, no change in the service I provided. Four of the five enrolled.

The lesson I learnt: By backing yourself and the value you provide, you demonstrate confidence and attract clients who are willing to invest in your services and might I add, they usually achieve better results.

Why you should increase prices

Contrary to intuition, higher prices can make selling easier. When customers see a higher price, they often perceive greater value and are more invested in the product or service. In today’s evolving market, longer-term relationships with trusted brands are becoming increasingly valuable. People crave reliability and longevity, making higher-priced, long-term offers more appealing.

Embracing your value and the transformation you provide

Embracing the value of your products or services is key to confidently raising your prices. Understand that your offerings aren’t just about the features they provide but the transformation they facilitate in your clients’ lives. When you recognise the profound impact of what you offer, you naturally exude confidence in your pricing. Take the time to articulate the unique benefits and outcomes that distinguish your offerings from the competition. By clearly communicating the value your clients will receive, you empower them to see the worth in what you provide and justify the higher price point. Remember, when you believe in the value of your offerings, your clients will, too.

Creating your high-ticket offer

When considering pricing strategies, it’s essential to start with your high-ticket offer. Just as Elon Musk launched Tesla with a high-priced Roadster before introducing lower-ticket products, beginning with a high-value offer sets the stage for success. Lower-priced offers can then serve as entry points to your high-tier programs, creating a sustainable business model.

Understanding the significance of pricing and having the confidence to increase it are essential for entrepreneurial success. By recognizing the value you provide and effectively communicating it through pricing, you attract committed clients and position your business for growth. So, don’t hesitate to raise your prices and level up your business, not only better profits but more importantly, for increased impact.