If you are a coach, consultant, or freelancer, you might wonder whether you’re ready to raise your rates. If you’re asking, the answer is yes.
As an entrepreneur, you should raise your rates regularly. The cost of doing business and inflation are factors that impact your bottom line. After all, you are in business to make a profit.
Maybe your skills have recently improved through a new training course or certification. Perhaps you want to attract a higher caliber of clients. Or, perhaps it’s been a while since you increased your fee.
Whatever the reason, it pays to have a plan in place before you make your big announcement. Here’s where to start.
Start with 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 spend with them. Resentment can build up, so be wary of this. It’s better to raise their rates than provide substandard services due to conflicted feelings.
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 increase. They may leave. Are you prepared financially should that happen? Don’t be afraid to let go of the old to bring in the new (and better!).
Next, consider when your rate increase will go into effect. A rate increase might be different for each client, depending on how they’re paying you. A client who is on an annual coaching plan might not see an increase right away, while a monthly client might be shocked to find her rate is going up in the next payment.
It’s best to give your clients at least thirty to sixty days’ notice, so they can budget for the higher rate.
Another possibility is to stair-step them to the new rate over time, say two to three months. This way, the increase is gradual, which may make it easier for your client to adjust.
Finally, if you want to gain a few new clients, you might think about creating a last-minute offer. Announce that your rates are going up on a specific date. Then offer to let a number of new clients lock in your current rate if they sign on by your deadline.
Sure, you’ll still be working at your old rate, but with a few new clients on the roster, your cash flow will improve.
Above all else, you have to feel good about the prices you charge. If you think your rates are too low, the chances are good that they are. Raising them will not only make you feel good, but it will take your income to the next level, which feels even better.
So, now let me ask you, with a plan in place, are you ready to raise your rates?
Hello, I’m Patti! I’m a Christian Life & Money Coach, Ramsey Solutions Master Financial Coach, Health Coach, writer, and former retirement planner. I’m also an award-winning co-author of She Writes for Him: Stories of Resilient Faith (Redemption Press), and prayer warrior, serving on the prayer team at my local church.
My mission is to provide inspiration, coaching, tools, and resources to help you claim all the goodness and abundance God has for you.