Hustle & Heart
How to Know When It’s Time to Raise Your Prices
BY TARYN JEREZ
If you’ve ever had a conversation with a grandparent, you’ve probably heard something to the same effect of “Back in my day a soda pop only cost a nickel!” Well, Grandpa was right; times change and so do prices!
When it comes to your business you may not be selling anything for a nickel but when is the last time you thought about raising your prices? Perhaps you are in the thick of the conversation with your inner monologue right now, wondering if it’s time. There might be different reasons for your desire to increase your pricing and while they are all valid, it can sometimes still feel difficult to push the “go” button.
If you aren’t quite sure when to raise your prices, here are a few key things to help you determine if the time is right!
Your Market is Experiencing Change
In the last 14+ months it’s hard to find a market or industry that hasn’t experienced change! Thanks a lot, global pandemic! Think about what areas of change you’ve encountered or are currently encountering in your business. Have you seen an increase in similar companies or product providers pop up? Have the supplies you use for your business experienced an increase in pricing or heightened demand? These are important elements when determining if your pricing is ready for an uptick as well. If you find your industry is getting more competitive and the demand is higher, that may be your green light to reevaluate and increase your pricing.
Your Customer Conversion Rate is High…a Little Too High
Weeks may go by without really thinking about your customer or client conversions but it’s an important aspect of your sales to consider. A simple way of looking at this as a service based business is for every consultation or inquiry, how many times did you receive an actual sale? If you’re a product based business, it can be a little trickier but ask yourself how many objections versus transactions you’ve had over the year. If your conversions are really high that’s a great thing of course, but it can also be a red flag if those conversions happen with little to no hesitation over and over. It may mean it’s time to raise your prices as the current pricing may be a little too low.
Your Happy Dances are Losing Gusto
Think about that excitement every time you close a sale! The feeling that someone out there wants what you created or trusts that you’re the right person for the job – you know the one! Well, you may not realize it but those happy dance moments over sales may start to get more and more mediocre. Of course, as your business grows you may get used to sales coming in more but check in with yourself to see if that spark is starting to get smaller and smaller. You want to price your work at an amount that feels really fulfilling when you make a sale. It’s important to check in with yourself and ask, “Am I selling my work at a price that matches the value of what I offer?” Challenge yourself to increase your prices the next time you notice you’re losing that gusto in your sales!
Hustle & Heart Challenge This month think about your current pricing strategy and how it makes you feel. Are you proud of your prices? Do you believe in them? Do they convey the value of what you offer? If you see room for improvement, do you feel confident in moving those dollar amounts up higher or are you held back by fear or insecurity? Remember, you are capable and worthy of creating a profitable business!