One of the biggest hurdles is to raise your rates.
After all, it’s about that time.
In every coach’s life, there comes a time when you simply have to raise your rates. Maybe you’ve been in business for years without a pay increase. Maybe your skills have recently improved through a new training course or certification. Or maybe you just want to attract a higher caliber of client.
Whatever the reason, it pays to have a plan in place before you make your big announcement. Here’s where to start:
Take a look at your current clients.
Will you raise their rates as well? If the answer is no, then you have to consider if keeping them will be worth your time, or if you’ll feel resentful at the amount of (lower paid) time you are spending with them. Resentment can build up, so be wary of this. It’s better to raise their rates than provide substandard services due to hidden anger.
If the answer is yes, then you have to prepare yourself for potential fallout. Simply put, there are some clients (you likely know who they are) who will balk at a price hike. They’ll threaten to leave. They may actually leave. Are you prepared for the hit your wallet will take should that happen?
Consider when your rate increase will go into effect.
This might be different for each client, depending on when/how they’re paying you. A client who is on an annual coaching plan might not see an increase for 8 months or more, while a monthly client might be shocked to find his or her rate is going up in a week.
If you can, give you clients at least 30 days notice of the increase, so they can not only budget a higher expense, but shop around for a new coach if they choose to.
Create a last minute offer.
If you’re a little flexible and want to grow your list of clients, you might think about creating a last-minute offer. Announce that your rates are going up on [whatever date], then offer to let X number of new clients lock in your current rate, if they sign a contract right now.
Sure, you’ll still be working at your old rate, but with a few new clients on the roster, your cash flow will definitely improve.
The most important thing to remember about rate increases is this: You have to feel good about the prices you charge. If you think your rates are too low, chances are good that they are. Raising them will not only make you feel better, but it might just let your current and prospective clients know the value of your services as well.
How do you know when it’s time to raise your rates? Check out the 6 signs that it’s time to raise your rates by Alyssa Gregory.
Best wishes in all that you do.
Dr. Melissa Halstead helps small businesses develop, launch, and market their online courses, workshops, and masterclasses so they can inject more cash into their business while making a difference in the lives they serve.
Would you like to know more? If so, reach out to her on:
FB: Melissa Annalise Halstead | Twitter: @MeliHalstead | Snapchat: @melihalstead or fill out the contact form.