Worth every penny-When raising your prices makes sense
Recently, I saw one of my favorite artists, Janet Jackson, in concert. When I first saw her perform on the big stage in 1998, I got a hook-up for a ticket from one of my insider friends. Although, I claimed Janet as my girl since “Control,” I wasn’t sure whether I wanted to invest in seeing Rhythm Nation performed live, even though I could practically perform all the moves on stage with her. I went to the concert and it was fabulous. She had convinced me that the full value ticket price was worth every penny.
Fast forward to 2007, I had another opportunity to see Janet. This time, I did not even blink about putting down my American Express Card to see her. Why? I knew that Janet would bring her A-Game. This is what you want your clients to say about you.
Getting paid what you are worth is always a sensitive topic for professionals in the service industry. When you have years of experience and have invested hours in training , why should you be fearful about charging what you are worth? The answer is that you have no choice but to do so if you want to stay in business.
Take a lesson from Janet. Always give your clients your all so that they know that you are serious about providing good service. Make every appointment like a Madison Square Garden performance. You can’t coast through a few clients each day and expect your clients to appreciate your value. Once your client knows that you always deliver, you can confidently tell your clients, I am raising my rates so that I can continue to serve you with excellence.
Here are a few other things to consider when thinking about a price increase.
1) Consider your brand image. It is hard to promote yourself as an “upscale” salon when you only charge $15 for a basic hair salon service. There have been psychological studies that have show that people use price as as signal for quality. Now, I do not recommend raising your prices arbitrarily on GP. However, make sure your prices allow you to be able to afford to give your clients the “fine dining experience” that you would like.
2) Don’t worry about losing clients. I know some of you may be thinking, “Is she crazy?” Let me clarify, don’t worry about losing the wrong kind of clients. Let’s face it; there are some clients that you should have let go a long time ago. You need to focus your time, energy and talents on profitable clients to make your business a success.
3) Have a life. I was going to just say work smarter not harder but that is not enough. You should not have to be bumping ends at midnight to pay the bills (unless you can afford to pay someone else to do it for you and still get paid).
The Final Scoop
Every company that thinks about raising prices must ask itself, “are my clients willing to pay what my products/services are worth.” I struggle in this area, too (I will reread my own good advice again). Big companies hire expensive consultants to make decisions on the topic so it is not easy. However, you need to present your services to the world with the belief that you CAN charge for the value that only you uniquely bring.