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OFFICE HOURS ARE OPEN! It's TIME TO RAISE YOUR PRICES... Elegantly!

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Momentum to $1 Million Host

OFFICE HOURS ARE OPEN! It's TIME TO RAISE YOUR PRICES... Elegantly!

Momentumers! Raising prices is another FANTASTIC thing we get to do at the beginning of the super quarter, but the question I always get is how to do it easily, ethically, and elegantly (aka without feeling sales!). So today during Office Hours, ASK ME ANYTHING... AND... Let's boost your top and bottom line TODAY and for 2019!

 

@lynda @Peter_G_Stone@Pen@caronsbeach2@CMA@twobiggs... Ready to raise your rates? If so, what questions do you have? Fire AWAY, I'm ready!! J. 

 

P.S. We haven't heard from you folks for a while... Any questions?

@Dinah@MLBFinancial@paulglazier@vtarnavsky@JBrown,@vivchoi@CarlaMurillo

@martifuse1@sfmoody@nmiranda019@AliciaLaursen@revel@AngelaR@juliecan,

@Klarson,@QBSuperGenius@DJLU@rsyung@jejetaxllx@IntuiKelvin@bobbybantam@lizabeth@emporium@CPY_NJ@Tarra_D@TheDomesticDiva@pburdette@Jsilva2510@Rekha-DivineNY and @ApothecaryMama!

 

 

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6 Comments
CMA
Frequent Explorer *

Re: OFFICE HOURS ARE OPEN! Let's TIIME TO RAISE YOUR PRICES... Elegantly!

Hi Julie, 

 

Raising prices is something that I definitely struggle to explain to my clients. In my case our main costs revolve around labor hours and materials cost. When materials go up, its a lot easier to explain that to a client, but when we need to raise labor rates to keep up with overhead, competitors, or the fact that we may have been under priced, recurring clients find that very hard to digest and in many cases will ask that we keep them under our old rate. 

 

How can I keep my clients confident in our services, while helping them understand that raising prices is crucial to keeping our doors open? 

 

Eager for your guidance! 

 

Thanks, 

Jacky

Momentum to $1 Million Host

Re: OFFICE HOURS ARE OPEN! Let's TIIME TO RAISE YOUR PRICES... Elegantly!

Wonderful question @CMA! You asked:

 

How can I keep my clients confident in our services, while helping them understand that raising prices is crucial to keeping our doors open? 

 

Yes, when materials are involved it feels easier to justify rate increases, but whether the cost of materials goes up or not, the COST OF LIVING goes up regardless. With that said, if you are CONSISTENT with raising rates for existing clients by 3% or so every year, you will train them to expect it and pay it because they love working with you. Which brings me to a few other points:

 

1) Do you have a special/unique service that you can provide/add that would command a higher price? If you can't think of anything immediately - consulting is an excellent way to add revenue with a very high-profit margin to boost your profits. The added value is that when you ZAG when everyone else ZIGS, you can carve out your own unique space and those who passionatly want it will happily pay more for it. It's when we are doing things in the same way as our "competitors" that we become a commodity making it very difficult to rise above. BOTTOM LINE: Be unique! Redesign at least one of your services to be different, amazing, and premium!

 

2) If you still don't feel comfortable raising prices with existing customers, raise them for new customers!  

 

3) Improve your sales conversations. Often the difference between a customer selecting your company over a competitor is your presentation.  This is a BIG conversation, but the two critical aspects are a) did you uncover their BURNING PROBLEM and speak to how you can solve it and b) did you ASK FOR THE BUSINESS and make it easy for them to say yes, with payment term, financing, etc. 

 

Jacky, what are your reflections on the above? Where can you take one small step forward on this today? Standing by! J.

CMA
Frequent Explorer *

Re: OFFICE HOURS ARE OPEN! Let's TIIME TO RAISE YOUR PRICES... Elegantly!

Thanks, Julie!

 

You made some excellent points! 

 

Consulting is a huge part of what we do, whether it be design consultations, floor planning, or merely giving expert advice about what woodworking techniques to use. This is especially true when dealing with residential clients, who often change their minds during a project, sometimes adding or subtracting from their initial request. These clients in particular take up a lot of extra time that we don't normally account for, and therefore, don't get paid for.

 

Although we never considered ourselves designers, architects, or engineers, the fact is we provide all these services under one roof, and one price. You gave me a lot to think about, and I believe starting with how we explain the level of our services to our customers is the first step forward I am going to take. 

 

Thanks so much!

 

Jacky

ProAdvisor

Re: OFFICE HOURS ARE OPEN! It's TIME TO RAISE YOUR PRICES... Elegantly!

Hi @JulieatTheWELL:  

 

I am actually setting all of my customers up in a new system I learned from Seth David in 97 & up. As I am doing this, I am tracking the new customers and when they signed up.  I am already a year plus on some of these accounts and I agree, they should be raised.   The last time I raised the prices on the old customers is when I moved them all from hourly to fixed/value billing.  That was 2 years ago.  They need to be raised as well.  Some of my old customers have been with me for 10+ years or more.  The economy is good and I agree it is time.  

 

I love how you wrote this "raise prices elegantly".  How do you do this?  

 

Sorry I am late in posting as I am still playing catch up from my new grand baby trip.  Cat Happy

Super Explorer **

Re: OFFICE HOURS ARE OPEN! It's TIME TO RAISE YOUR PRICES... Elegantly!

OMG, I need to raise my prices. Actually, I am in the process of switching everybody to a value pricing system. Well, so I think.

 

By the time I am done every evening, I am too tired to follow up on this one.

 

But yes, I have to.

Community Backer ***

Re: OFFICE HOURS ARE OPEN! It's TIME TO RAISE YOUR PRICES... Elegantly!

Great topic per usual @JulieatTheWELL!! This was a large discussion between my father and I. We recently increased rates for all services because they had not been raised in several years. It was a very easy decision based on a few factors:

  1. WE DESERVE IT! Our A and even B clients realize the value we provide them. When clients are satisfied with your work and are provided with VALUE by the services you provide, reasonable rate increases are not a relationship breaker. 
  2. As you pointed out, the cost of living is always increasing...it's called inflation! It is necessary for any business owner to continually adjust rates by the year. At the very least evaluate them. 

To piggy-back off that last point, business owners need to be proactive not reactive. Join professional associations that provide data and analysis from research and surveys they have completed within your industry. This makes it very easy to find conclusive data on where rates should be in whatever region you conduct business. It takes the guessing out of where you "believe" rates should be and provides a solid benchmark to work from.