The “Secret” About Raising Your Prices

February 2, 2014 | By | 1 Comment

“The amount of money someone is willing to pay you will be in direct proportion to the amount of confidence they have in your ability to get them results,” – Diego Rodriguez

Do YOU have confidence in your services/products? Are YOU proud of what you have to offer? You must project this confidence and pride; that will convince your ideal prospects to not only choose you, but also pay you well for your efforts.

I am going to assume that you answered “yes” to both of the above questions. If you don’t feel great about your services or products, you need more help than I can give! My experience is that there are quite a few small business owners, myself included, who feel apologetic about raising their prices, even though they deliver great value and results to their clients.

Some people think that there is a “secret” to raising prices. There’s no secret! You and only you can determine your success. Don’t stand in your own way. As Dan Kennedy, prolific creator of the widely read “No B.S. Marketing Newsletter” says, “Just raise your prices”. Many small business owners have the  preconceived notion of  the “going rate”, and that is how they set their prices. NO! You’re better than the others and you do things differently than the others, don’t you? The state of the economy and the “going rate” aside, there are only so many hours in a day, only so that much that you can do. If you aren’t charging a sufficient amount for what you deliver, you are actually hurting your business.

Consider the Groupon phenomenon: These people are hard core bargain hunters. They may come to you when you are offering a discount, but they are not at all likely to stay with you. After your promotional offer has ended, they are on to the next cheap thrill. Meanwhile, you may have pushed aside your faithful, established clientele while you took care of that swarm of hungry locusts: the bargain hunters. And we all know that having an enduring relationship with a loyal customer is way more satisfying and profitable than doing business with someone who just wants a “deal”.

Also consider this: when you are running like a hamster on a wheel, trying to take care of everyone’s requests, you are not able to provide your best service. Of course, when you raise your prices, you may lose some clients. But then, you are able to make the same amount of money in less time, and really have the time to give your best.

I had an interesting conversation with a new client the other day. She moved to Houston from another large city, and was searching for a new hair cutter. She settled on a salon from doing online research, and then called the salon to inquire further about the staff. Guess what she asked? She asked which hair cutter charged the most! When I wanted to know her reasoning, she replied that she felt the most expensive cutter would be the top one, and that’s who she wanted. She then added that she was pleased with the haircut and service she got, and will continue to return to the stylist.

Charging a higher price can allow the margin to upgrade your services and products. If you are barely squeaking by, you cannot afford to give the best. Did you know that we get to “choose” our clients? The way that we position our business will determine the kind of customer we attract. So why not choose the customer who can afford to pay? There’s nothing wrong in making promotional offers from time to time. But you don’t want to attract the person who is just looking for the cheapest deal.

I know that we all have a handful of precious, loyal clients who have been with us all along. Perhaps there are a special few of those who you may reward with a lower rate, or other perks. I understand, and I do that for my favorites, especially the elder ones who may really feel tight with their dollars. But I advise you to limit the number of favors you do with pricing. It may be better to give them a small lagniappe on their birthdays or holidays. Besides, if they are truly supportive of you and your business, they want to see you succeed.

So, what’s the secret? Just raise your prices. And let me know what happens.


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Category: Business, Finance

Mary Hooper

Mary Hooper()


I combine thirty plus years of experience with the latest continuing education to bring you the best of the industry. My one on one approach involves listening, evaluating, and educating to create a customized solution to your concerns.

Mary’s attention to detail and exceptional customer service meet to fulfill your every expectation of satisfaction.


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