Ciamos

Bernadette Doyle

• increase the number of new clients and customers
• increase the value of each sale made to clients and customers
• increase the number of times that clients and customers buy from you

Out of these three, the absolute FASTEST way to guarantee an immediate increase in income is to raise your prices, yet many small business owners resist increasing their prices, and chase after new clients and customers instead, thinking that 'more clients' will somehow provide a miracle cure.

But just think about this for a second. If the prices that you are currently charging aren't high enough, what will having more clients do for you? If you're selling your time, you will just end up burned out and exhausted. That's a 'lose-lose' for you AND your clients!

This week I am challenging you to take a closer look at your prices and ask yourself honestly whether you are charging enough. Answer the following questions:

• Are you receiving a personal income appropriate to your skills, knowledge and experience, and the investment you have already made in yourself and your business ?
• Is your current income meeting ALL the costs of running your business (including time and money spent on personal development and training)?
• Are your current fees giving you a surplus or profit which enables you to invest in your business and allow it to grow in size, services and quality?
• Have you had clients or customers say 'No' to you because of your prices? (Marketing guru Dan Kennedy says that if you aren't losing 20% of your business on price, then your prices are too low.)

If you can't say yes to all four questions, then there is a good chance that your prices are too low. So how did you do? Starting to feel a little uncomfortable now?It's not surprising. I'm willing to wager that the majority of people who answer these questions honestly will discover that they are undercharging.

The key question though, is that having admitted that you are undercharging, are you willing to do what is necessary to rectify this situation?

'But if I don't have enough clients or customers at my existing prices, surely I'll have less clients when I raise my prices?'

This is a common concern, but it doesn't have to be. Most people fall into the trap of thinking that low prices = more sales, when actually, the reverse is true.

Think about it. What's the world's best selling soft drink? Coca-cola, and it's also the most expensive cola on the market. Which brand of washing-up liquid has the largest market share in the UK? Fairy Liquid. And it's also the most expensive. One of the reason that these brands do so well is that they have factored marketing into their costs and prices. Their prices ensure that they have enough to invest in marketing. Have you built a marketing cost into your prices? Several people who answered my survey wrote 'I don't have a marketing budget' which suggests not.

In my experience, when a person raises their prices, something very interesting happens in that they usually attract a new influx of unexpected business. I've lost count of the number of times that I've seen this happen with clients. I think there are three main reasons why this occurs.

Firstly, the act of raising your prices is an act of self-value. It's like you are saying to the world 'I recognise that I am worth more than I have been charging'. When you value yourself, the world starts to value you too. It always happens in that order. If you wait for the world to start valuing you before you do, it just won't happen.

Another explanation is that lower prices may have deterred some of your customers. If I told you that I had a brand new Rolls Royce that I'd let you have for £25,000, the first question you'd ask me is 'What's wrong with it?' Price makes a statement about the quality of what you are selling. If your price is too low, the buyer thinks there must be something wrong with it.

The final reason is that often when a person's prices are too low, they can end up subconsciously repelling new business because of resentment. Each new client brings a 'sinking feeling' because the seller knows deep down that they are entering into an unequal exchange of value. When prices are adjusted, this 'invisible barrier' disappears, hence a corresponding influx of new business.

'But I'm worried about alienating my existing clients and customers when I raise my fees'

Again, this is a common concern. Yes, there may be some clients and customers who are with you right now just because of your price. But my guess is that they are in the minority. The clients who value you will be willing to pay a price which reflects your skills, experience and the value you provide.

Perhaps you need to lose some of the clients who were used to your low prices to make room for clients who are willing and able to pay the prices that reflect your true worth.

© 2005 Bernadette Doyle

Bernadette Doyle publishes her weekly Client Magnets newsletter for trainers, coaches, consultants, complementary therapists and solo professionals. If you want to get clients calling you instead of you calling them, then get your free tips now at www.clientmagnets.com