Why Charging More Is Good For You & Your Clients
One thing I’ve learned about this industry over a period of 25 years is that raising your prices above the industry rate is one of the hardest challenges artists face. We all seem to think that when we charge more that overnight, all of our clients will leave and we’ll be left scrambling financially to provide for our families and keep a roof over our heads. For those of us non confrontational artists, the thought of having to explain ourselves to clients that are upset about the change is enough to keep your price where it’s at.
But by nature, evolution, growth and change has to happen in order to be satisfied with what you do. We can’t help it. We’re human.
Today I want to share a little bit about my experience in this area because I want you to know that raising your price is easy as long as you don’t overthink it and make up scenarios in your mind that haven’t happened yet.
"Raising your price is easy as long as you don’t overthink it and make up scenarios in your mind that haven’t happened yet.”
I used to look at what everyone else in my area charged. Then I would come up with an average, create my own pricing just below that average and add more value than anyone else. I’d do this by offering mobile service and a mini massage during the appointment which I knew no one else offered. By the end of the work day, I’d barely made enough to cover my regular bills, the added expense of travel time, gas and maintenance for my car. Not to mention, carrying all of that equipment was hard on my body.
Then I had a conversation with a mentor who said, “If you’re competing on price, you’ll always come in second place because there’s always going to be someone willing to charge less than you. So why not charge more and work less?
“If you’re competing on price, you’ll always come in second place because there’s always going to be someone willing to charge less than you.”
It made complete sense but at that point in my career, I couldn’t see how much value I brought to the table. And since I didn’t see my own value, neither did my clients. So I had a bunch of clients that didn’t appreciate my efforts, complained about my pricing because they didn’t know any better and they didn’t value my time. In the end, I was the one left feeling burnt out and broke.
There’s a book called “Influence: The Psychology of Persuasion” that I would HIGHLY recommend reading for anyone looking to understand pricing and psychology around pricing. I read this book and something jumped out at me. And that was… by charging premium pricing, people automatically assume you’re selling them something of higher value… even if you’re not. You could literally be selling them the same thing as someone next door but because you’re charging more, they will assume what you are offering is more valuable.
This point is the kickoff to why you should raise your prices. You not only want to raise your price, but you want to be above everyone else in the area.
“Higher prices attract quality clients that have the money to pay you what you’re worth. “
Quality clients don’t want to go to some cheap place because history has taught them that they receive better treatment when they spend more money. It’s the reason why I pay more for my gym membership when there’s a gazillion local gyms that I know charge way less. People also tend to value their purchases more when they’ve spent more money on them.
Bottom line, you’ll attract quality clients who value what you do. And that’s good for you.
Here’s another thing that happens when you charge more. I found that when my prices went up, my mind started churning and thinking of what I could do to blow my clients socks off. It made me step my game up in terms of education, how I carried myself, how my place looks and the overall service I provided went from average to amazing. I started paying closer attention to details that I hadn’t before when I was working for less. This is the game changer for your clients. They will love you more for approaching business in this way.
So will you lose all of your clients? Probably not. And think of it this way, if you do lose a client that pays less but you gain one that pays premium pricing, you’ve won. And here’s what I told myself before I upped my pricing, “If I lose all my clients, I can always go back to my old pricing and get them all back. So I’ll be ok no matter what.”
It’s time to raise your prices!