This is a lesson that most designers/photographers/coaches/creative types learn the hard way after about 6 months (hopefully not more) of charging bare bone pricing and working night and day.
No more of that!
In my new free mini-guide, The Top 5 Things Most Creative Solopreneurs are Doing Wrong, I talk about rates and how most aren’t charging enough.
These days, people are looking for the premium. They want the best. They want the personal attention-to-detail and the cure to all of their headaches and frustrations.
But, when you’re undervaluing yourself, because you think that people won’t be able to afford you – you’re doing a disservice to yourself and your business.
Your rates say a lot about your brand & your perfect clients.
Think about Apple for a second. They have a premium product. It’s not for everybody and not everybody can afford it. But, the fact that it’s not for everybody and it’s seen as a premium product, makes people want it even more.
What are your rates currently communicating to people?
In my experience, I’ve found that the lower my rates, the least I enjoyed the project. This wasn’t about the money, it was about how much respect and attention the client had on their own project. When the client doesn’t have a lot of ‘skin in the game’, they’re more likely to be bigger pain in the asses, not respond as quickly as you expect and just generally not respect you and your expertise. That’s the cold hard truth.
When you’re charging a pretty penny for your services, your clients respect your opinion and are 100% invested in working in the project. That’s the way I like it. No Photoshop-puppets over here!
So, what type of clients do you want to be working with?
It’s not about how long it takes you, it’s about how much it’s worth for your clients.
It’s important to track your time and be aware of how long a certain task/service will take you to complete.
But, that doesn’t mean that you should simply multiply the hours by your hourly rate.
The important thing when pricing your services is to take into account how important this service is for your clients. How badly do they need help solving their problem? How much pain has it already caused them?
Thinking about your pricing in terms of how valuable it is to your perfect clients is the best way to determine your rates.
So, should you raise your rates?
Another way to communicate VALUE to your perfect clients is to LIMIT AVAILABILITY.
Exclusivity is like magic. When people can’t have you, they want you even more. That’s how our brains work – with everything, actually.
This can apply to both products and services.
For services – working 1-on-1 with a small number of clients per month or per year and charging a premium rate is how you limit your availability. You just pull out all the stops for this select number of clients.
For products/programs - you only run the workshop twice per year, so that when it launches each time you know you’ll have the interest.
So, I wanna know – are you undervaluing yourself? What types of clients are your current rates attracting? Are these the clients you WANT to be working with?
Take Action: If you think that you need to raise your rates, do it! All it takes is a simple update to the price sheet or website.
Have current clients that you have to inform? Just send them a nice email, letting them know that your rates will be increasing on a certain date. What I’ve found to be true is that they totally understand and agree with why you’re raising your rates. Truth is – they’ve probably been ready for you to raise your rates, because they know you’re worth more than your charging. But, of course they’re not going to be the ones to come out and say it first!
Tell me in the comments below:
- Have you ever raised your prices?
- What did your current clients say or how did people respond?
- Did you actually get MORE email inquiries after you raised your rates?
I know everyone out there struggling with this situation would love to know!
PS. To grab a copy of the free mini-guide I mentioned above, sign up in the box below this post and you’ll have instant access to it!