Sometimes you feel that you need to make a correction in the way you deal with your clients. That correction might be with prices, type of service, products etc. And though this might be good for your business, losing clients isn’t.
Doing it the right way
When you make changes in your business, you have to make them gradually. You can’t change prices or any other aspect of your business too dramatically. Take a service-based business as an example. Let’s say you’re a life coach. And you have been charging $50 an hour. You notice that even though you’re oversold you’re still not making enough money to Make a decent living.
You do some research and find out the average price in the market is three times what you charge. You realize that if you want to charge $150 an hour, your business will make sense. But tripling your prices may cause you to lose all your clients.
What you want to do is raise your prices just a little, let’s say to $70 an hour. And bringing new clients charging them $100 an hour. You’re still not at that $150 an hour price range, but you already raised your earnings by around 80%.
Your next step is charging new clients $120 an hour (start this after about three months). And continuing your client’s current prices. Now you have three price ranges, $70, $100 and $120. By this point, some of your older clients are done with their process. And after about 3 to 4 months you can start charging new clients $150 an hour.
This process might seem slow to you. But you have to understand your clients might know each other, might speak to each other. And you don’t want to be caught in a situation where you have to explain your prices. Saying that’s the price everybody charges is not going to get you off the hook. You already got your clients used to a certain price, and changing it too dramatically is going to cause you to lose them all.
Increasing your price gradually will save you the trouble. You only increase the price for new clients allowing your usual clientele to keep paying the old price. This will show new clients that you respect them, something most businesses neglect by giving new clients a better deal.
I hope you found this post helpful, if so like it and share it with your friends. And while you’re at it, check out my ebook ‘level up your business’ a guide to starting your own business the right way.