The Hidden, Simple Growth Lever in Your Firm
- It’s Time to Raise Your Prices
- Which Clients Will See Price Changes?
- Now is a Great Time to Make Price Changes
- How to Win 2022 (The Big Trends)
- Mistakes to Avoid When Pricing Your Accounting Advisory Services
- What You Need to Know Before Pricing Accounting Services
It’s Time to Raise Your Prices
Today, founder and CEO of Jetpack Workflow, David Cristello is discussing a simple tactic that’s easy to implement and can improve profits but is often ignored—raising your prices.
Raising prices is a sensitive topic and plenty of firm owners struggle with when and how to do it. However, if you aren’t evaluating your prices frequently, you are likely underselling your clients.
However when you implement a new pricing strategy, you’ll elevate profits and your client base and have a better work/life balance as you scale.
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One of the most common questions firm owners have when it comes to raising prices is: Should I raise prices for new clients, current clients, or both?
Here’s what David has to say:
For new clients, you should absolutely raise your prices. Consider bumping up by 20%, 30%, or even 40%, and see how they react. As of right now, you are probably underselling yourself, so there is no problem with new clients seeing new prices.
As you implement the new prices, see how clients react. At the end of the day, for them, what it comes down to is whether or not they believe you can do the best job.
Have you shown them enough case studies and examples to articulate the outcome they will receive from working with you?
You should also raise your prices for current prices, however you should do so gradually. If you plan to make a large jump in pricing, let your existing customers know you are raising the prices. Share you will make these changes for them at a staggered rate. Start with a small 10 or 15% jump. This shows you value them as existing clients.
Overall, new tools, marketing, and workflow processes are great for improving profits but reviewing and adjusting your prices is a game-changer for your firm.
Now is a Great Time to Make the Pricing Change
If you’ve just started a new firm, now is the time to figure out the industry. Be sure you can justify your prices as you make changes.
If you’re a long-standing firm owner and you haven’t reviewed your prices in a while, now is the time to take a closer look to figure out if you’re undercharging for your services.
However, you shouldn’t use your competitor as your primary data point. Just because competitors haven’t adjusted their prices doesn’t mean you should stay stagnant as well.
Prospects care about value and what they are getting in return. Raising prices gives you the ability to provide more and better services. For example, if you raise prices by 50% and lose 25% of your clients, you are still realizing a net gain and can devote more energy to your current clients.
As a final tip, If you’re uncomfortable with having the price-raising conversation, practice it. You should be confident in what you are charging our customers.
Rely on Your Resources to Get Your Pricing Right
If you find yourself struggling with your approach to raising prices, check out some of the resources linked above. You should rely on your assets to make the transition smoother.
Also, if you enjoyed this podcast, save it and send it to someone you think could benefit from it.