Raising your rates isn’t just about numbers. It’s often a sign your business has grown or your workload has become more demanding. Maybe clients want faster turnarounds, or the economy is squeezing everything across the board. Either way, it makes sense to adjust. However, it can still feel uncomfortable — especially if you’ve worked with a client for years.
Writer Sam Lauron says though it can be nerve-racking, you should always let your clients know in a professional and timely manner when you know you’re raising your rates. In this issue of PromoPro Daily, we share Lauron’s tips for communicating price increases.
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Determine the communication method. Lauron says email is usually the most effective and straightforward way to let your clients know about a price change. But it also depends on what the norm is for you and your clients. For example, if you usually communicate with your clients over video calls, then it makes sense to have the conversation over video. She says just be sure to let them know over email that you want to schedule a call to discuss your pricing so they’re prepared.
Communicate the reason. Keep it simple when informing your clients of rate increases. You don’t need to over-justify, she says, but you should give them some insight so it doesn’t come across as if you’re raising your rates for the fun of it. Put yourself in your client’s shoes and keep your reason focused on what the benefit will be to them. Maybe this price increase will allow you to dedicate more time to their projects, Lauron says. This is your chance to communicate value-based pricing.
Remind them of results. After you’ve explained your reasoning and highlighted the value of your offerings, Lauron suggests recapping them with recent results or wins. This can be short and sweet, she says. The idea is to remind them of what you’ve helped them achieve during your time working together to communicate your value-based price.
Provide plenty of notice. You wouldn’t appreciate a client cutting your contract short without notice, so likewise, don’t spring your news on them unexpectedly. According to Lauron, the professional thing to do is to let your clients know that your new pricing will take effect on X date, and you should ideally communicate this at least a month ahead of the price change. She says the earlier you can tell them, the better. This way they have time to prepare on their end.
Don’t be afraid to walk away. Your clients may push back on your pricing. Lauron says they may need time to think it over or they may decide your new rates won’t work for them. That’s OK. She says when you lose a client over pricing, you’re bound to gain another who can see the value you bring.
When you’re raising your prices, make sure you’re professional and upfront with your clients. Let them know the benefits to them and give them plenty of time to adjust. It may not be the easiest conversation, but when you’re confident, you reinforce your value.
Compiled by Audrey Sellers
Source: Sam Lauron is a freelance writer who contributes to the Wethos blog.
