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What changes when you raise prices?
I’ve raised prices on service businesses many times now. Often, when service businesses (I’ll use the term agency/agencies interchangeably here) start out, they price themselves low in order to get market share (aka, customers).
What many then forget to do, or are too scared to do, is raise their prices eventually.
When you raise your prices, things change. Often, the fear of raising prices comes down to fear of two things:
1. The unknown (what might change that I don’t know will change)
2. The conversations with existing customers/clients
The second one can be easily solved by not raising prices on them, and then giving them a reason to pay more via additional services etc. For example, if you only have a service fulfillment offer, would they pay you for consulting calls as well? If you only offer landscaping services, would the same people pay you for mowing (and by proxy you end up charging them “more” for the same landscaping services?)
The unknowns can also be learned. How? You learn from someone who has done it before.
There are 6 things that change when you raise prices:
