Latest / The 3Bz Podcast - Building Better Business / EP134 - How to Raise Your Prices Without Losing Clients

Transcript

EP134 - How to Raise Your Prices Without Losing Clients · The 3Bz Podcast - Building Better Business

• 0:01
  Hi there business owner, and welcome to the Three BS Podcast,
• 0:04
  the place where we go beyond the numbers and dive into the
• 0:07
  strategies to help you build a Better Business one step at a
• 0:10
  time. I'm your host, Stephanie, a
• 0:12
  multi awarding entrepreneur with over a decade of experience in
• 0:15
  the bookkeeping and currency world.
• 0:17
  If you're a business owner looking to streamline, grow and
• 0:19
  get back the time that you deserve, you're in the right
• 0:21
  place tackling real world problems, answering tough
• 0:24
  questions, and digging deep into business building secrets in
• 0:27
  just 15 minutes each week. So Are you ready to build a
• 0:31
  Better Business with confidence and clarity?
• 0:33
  Then let's go. Welcome back to the Three BS
• 0:37
  Podcast, your go to place for 15 minutes of CPD certified
• 0:41
  motivation, inspiration and education each week.
• 0:45
  As always, I'm your host Stephanie Marshall and today
• 0:48
  we're talking about something that makes most business owners
• 0:50
  feel slightly sick. Raising your prices.
• 0:55
  You know it's time your costs have gone up, your value has
• 0:59
  increased, you're more experienced, more efficient and
• 1:02
  probably over delivering. But then the fear kicks in.
• 1:06
  What if my clients say no? What if they all leave?
• 1:08
  What if I ruin everything I've built so far?
• 1:11
  I hear you, I've been there. This episode is to help you
• 1:15
  shift from panic to plan with the mindset and messaging that
• 1:18
  actually works when it's time to raise your rate.
• 1:21
  Let's be honest, most business owners delay price increases way
• 1:26
  too long. Guilty.
• 1:28
  You wait until you're exhausted. You've got too many clients.
• 1:32
  You get resentful that you're not making enough for it to feel
• 1:35
  worth it. That's not growth, that's
• 1:38
  burnout. Again, guilty.
• 1:42
  Raising your prices isn't about being greedy, it's about
• 1:44
  building something sustainable, it's about creating space and
• 1:48
  it's about being respected and rewarded for the expertise that
• 1:52
  you bring. Here's how you know it's time to
• 1:54
  increase your prices. You are constantly booked out.
• 1:58
  Maybe you've got a waiting list. You're definitely under charging
• 2:01
  compared to others in your industry.
• 2:04
  Don't know what they're charging?
• 2:05
  Ask ChatGPT. You're doing more than you
• 2:07
  initially offered. Usually it's because you care
• 2:10
  and you're too eager to please and you want to do a good job.
• 2:13
  You haven't raised your prices in 12 plus months.
• 2:16
  If O2 and Virgin Media can up their prices by inflation every
• 2:20
  year, you should be doing the same at the very very least.
• 2:25
  If your clients are having great results and your skills have
• 2:28
  levelled up, then maybe it's time to increase your prices.
• 2:31
  And if you've added more systems, better service or a
• 2:34
  faster delivery then they initially signed up for, if one
• 2:38
  or more of those is true, it's probably time to consider a
• 2:41
  review. Now let's get into the bit that
• 2:43
  everybody worries about. How would you raise your prices
• 2:47
  without losing the good clients? Well, this is how I recommend
• 2:51
  that you do it. I've tried a few different
• 2:53
  methods. These are the things that I find
• 2:54
  work best. Give notice.
• 2:57
  Let your clients know that the price change is coming in with
• 3:00
  plenty of notice. 30 days is standard. 60 days if you really
• 3:04
  want to give them time to digest it.
• 3:05
  Be clear, not defensive like you don't need to justify every
• 3:09
  penny. And The thing is, is you do get
• 3:12
  almost guilty. You feel bad for for even
• 3:14
  sending the e-mail saying that you've got to put your prices
• 3:16
  up, your rents increased 3 times and your software's gone up and
• 3:19
  you haven't increased them at all or you've just squeezed your
• 3:22
  own margins. Keep it confident and simple.
• 3:25
  Something as simple as high net client name.
• 3:29
  We're increasing our rates to reflect the value, experience
• 3:32
  and service that we provide. Your new monthly fee will be X
• 3:36
  from this date. We're really proud of the work
• 3:38
  we do and we're grateful for your continued trust.
• 3:41
  Something as simple as that. Simple as that.
• 3:43
  It doesn't need to be an whole essay.
• 3:45
  You don't need to justify everything.
• 3:48
  You just need to tell them what's going to happen.
• 3:49
  And if you're worried about how your clients would take that
• 3:52
  sort of e-mail, then frame the value.
• 3:54
  Remind them what they get results, Peace of Mind,
• 3:58
  reliability, honesty. You're not charging for your
• 4:02
  time. You're charging for
• 4:03
  transformation. You're charging for the results.
• 4:07
  Your time is incorporated in your pricing, but you're not
• 4:10
  charging for your time. Because if you do that, you hit
• 4:13
  an income ceiling and you can't build a Better Business.
• 4:16
  And finally, if you want to reward loyalty, if it feels
• 4:19
  right to offer some retention options, you could offer current
• 4:23
  clients along the grace period or freeze their rate for three
• 4:26
  more months. Yeah, but don't be afraid to say
• 4:29
  this is the new rate. So what we did is we went from
• 4:32
  bespoke packages to four set packages at ABCSUK because all
• 4:37
  of our clients sort of fell into four categories.
• 4:41
  So a lot of our clients are not paying our current rate that
• 4:45
  they would get if they came with us today.
• 4:47
  So the e-mail said your new monthly fee should be this, but
• 4:52
  to thank you for your loyalty, we're going to retain it at
• 4:54
  this. And then we're going to increase
• 4:55
  it after six months. You've still got to tell them
• 4:58
  what they're going to be paying. You can't just say, oh, yeah,
• 5:00
  but I'm just going to hold it for you or you should be paying
• 5:03
  this, but you're not going to. You need to give them a date
• 5:06
  that OK to thank you for your loyalty, to reward you for being
• 5:12
  part of the ABCSUK family. For example, you know, we're
• 5:16
  going to extend the, the, the price.
• 5:19
  We're not going to put your prices up, but everybody else's
• 5:21
  is going up. Yours will go up on X date.
• 5:24
  And here's the big thing, I guess some people will say no,
• 5:27
  some people will leave and that's OK.
• 5:30
  You're not for everyone at every price point.
• 5:33
  And often the ones who leave were the ones that were draining
• 5:36
  our time the most. And don't forget, no doesn't
• 5:40
  mean never. Sometimes they come back.
• 5:42
  I alone have had an enquiry a couple of weeks ago from a
• 5:46
  client who left me earlier this year.
• 5:48
  And now they're coming back. They're in a different position.
• 5:50
  They're sorting the business out, they're more profitable,
• 5:51
  they can afford the level of support that we give them.
• 5:55
  It's better to have 5 clients paying your worth than 10
• 6:00
  burning you out. So if you have 10 clients and
• 6:04
  your income's £5000 a month and half of them leave but you've
• 6:07
  doubled your fee, you're still going to same service, you're
• 6:11
  still going to have the same income, You're serving less
• 6:13
  clients, which gives you more capacity to do a better job for
• 6:16
  them and gives you space to take on new clients paying more
• 6:22
  money. But that's how we build our
• 6:23
  businesses. And you'll also attract more
• 6:26
  aligned clients when you own your pricing.
• 6:28
  I think confidence is really key with this.
• 6:31
  I know ABCSUK are one of the more premium practices in the
• 6:35
  country. I am very aware that our fees
• 6:38
  start at £250 plus back per month and for a lot of small,
• 6:42
  small businesses that's not affordable.
• 6:44
  But when clients come to ABCSUK, they don't just get a bookkeeper
• 6:47
  and accountant, they get somebody in their corner.
• 6:50
  They get business development. We've built web shops and e-mail
• 6:53
  marketing systems, we've helped with launches, we've driven to
• 6:57
  deliver vinyls. We've become, we become partners
• 7:01
  with our clients and that's what you're paying for that
• 7:04
  partnership, that connection you have, that support, somebody
• 7:09
  that's got your back and understands your business.
• 7:11
  Because let's be honest, nobody knows more about your business
• 7:14
  except you than the person who can see all your finances.
• 7:18
  They can see the actual numbers, can see what's actually going on
• 7:21
  in your business, and remember, if clients leave in the space
• 7:25
  that they leave behind is where better, brighter opportunities
• 7:29
  often land. I am living proof of that one.
• 7:33
  Writing the price rise e-mail or message was the bit that caused
• 7:38
  me the most anxiety. I knew I had to do it, I'd
• 7:40
  worked out what it needed to be, but actually writing and sending
• 7:43
  the message terrified me. So in order to help you if
• 7:47
  you're feeling the same, here is a quick structure for your price
• 7:49
  rise e-mail or message. Firstly, acknowledge the
• 7:53
  relationship and gratitude. I think it's very important to
• 7:56
  thank them for being a part of you.
• 7:58
  Thank them for trusting you, letting them know how much you
• 8:02
  value what you've done with them and that you love working with
• 8:06
  them or however you would word it.
• 8:09
  Then state the new price and the date that it's effective.
• 8:13
  Highlight what's included or improved.
• 8:15
  So that's the bit where you need to tell them that the price is
• 8:18
  increasing because of the skill set, because they have
• 8:21
  additional services you are providing because of the extra
• 8:26
  services. Whatever is included or improved
• 8:30
  in the service that you have offered that you've not been
• 8:32
  charging for, that's where you highlight that bit.
• 8:35
  And then invite them to reach out with any questions.
• 8:37
  Like I think I put in nearly every e-mail.
• 8:39
  If you have any questions, just hit reply.
• 8:41
  Like it's so important to me that people have an open
• 8:43
  communication channel and a way to get back to me if they do
• 8:46
  have any questions that I can respond to promptly because
• 8:50
  they're not going to want to come back with, oh, but I don't
• 8:52
  want to pay that price. That's going to make them
• 8:54
  slightly uncomfortable too. So make it as easy as possible
• 8:57
  for you to communicate. It's important to it's important
• 9:02
  to keep it short, to keep it sharp.
• 9:04
  Don't waffle on, don't give a huge essay if it's not needed.
• 9:08
  People don't need to read 700 word essay.
• 9:11
  They just need to know the facts.
• 9:12
  And the facts are that you are happy that they are a client,
• 9:15
  that their new price is going to be X and this is the date that
• 9:18
  it's going to be effective from. This is what's getting included.
• 9:22
  This is what we have improved for you.
• 9:23
  And if you've got any questions to reach out.
• 9:26
  And please, please, please don't apologise for charging
• 9:32
  appropriately. You are a business, not a
• 9:35
  bargain bin. It's so important to charge your
• 9:38
  worth and to charge profitably for your business.
• 9:42
  You're not a charity, you're here to run a business.
• 9:45
  So don't apologise for charging appropriately.
• 9:47
  Sometimes people ask me when I should raise prices and how
• 9:51
  often should they do it. There's no one-size-fits-all
• 9:54
  rule, but here's what I recommend to review your pricing
• 9:58
  at least every 12 months. If you have a financial services
• 10:02
  business or something that run like contracts that run for a
• 10:04
  year, we like to renew at the beginning of their financial
• 10:07
  year or just before their financial year so that we we're
• 10:10
  doing their entire financial year.
• 10:12
  There is no point in them paying for five months of accounts and
• 10:16
  corporation tax out of the 12 and then leaving and moving
• 10:18
  elsewhere. That makes no sense to me for my
• 10:20
  clients. So we set like a 12 month
• 10:22
  rolling contract, but it is reviewed every year.
• 10:25
  We also review biannually in case of software subscription
• 10:29
  increases, huge changes in in services that we're providing
• 10:32
  both upper and lower. And that's how we do it at
• 10:38
  ABCSUK. If there's an additional service
• 10:41
  they want adding then that gets quoted straight away.
• 10:44
  If you're introducing a new service or investing in tools
• 10:47
  then raise sooner. It's important to cover your
• 10:53
  costs as a business owner and if demand is outstripping supply,
• 10:56
  then raise now. So if you have a waiting list,
• 11:00
  if your demand, if more people want your services and you can
• 11:03
  physically provide and your company can physically provide,
• 11:06
  you're probably too cheap and it's time to raise it now.
• 11:09
  And don't forget, your pricing should reflect the results you
• 11:11
  deliver, your expertise, the experience that your clients
• 11:15
  get, and your actual cost of doing business, including your
• 11:19
  salary. Because if you're winging it or
• 11:21
  you're under charging because you feel bad, then it's time to
• 11:24
  step into that CEO mindset that we talked about a couple of
• 11:26
  episodes that CEO mode go back if you haven't really listened
• 11:30
  to it, because that mindset shift between working in a job,
• 11:33
  being a sole trader or a free answer to running a building a
• 11:36
  business, which I presume you want to by watching or listening
• 11:39
  to this podcast. It's time for you to step into
• 11:41
  that CEO mode and make decisions from that mindset.
• 11:45
  So in just in case you didn't realize, raising your prices
• 11:47
  doesn't have to be scary. Done right, it builds a more
• 11:50
  profitable balance and enjoyable business.
• 11:53
  If you need help reviewing your pricing, working out your
• 11:56
  margins or communicating your new rates, that's exactly what
• 11:59
  we do with our clients at ABC's UK.
• 12:02
  Head to ABCSU k.com, book in a 15 minute free discovery call
• 12:06
  and then we can work out whether a one to one power hour, a
• 12:08
  strategy session or a monthly support is a better fit for you.
• 12:13
  We support service based businesses and product based
• 12:16
  businesses just like you. And if we're not the right fit,
• 12:19
  we're not afraid to say so. Next week on the podcast, we're
• 12:22
  going to go a bit deeper into the emotional side of business
• 12:24
  with an episode on business burnout and what to do when
• 12:28
  things start to feel heavy. Because I've been there and I
• 12:31
  don't want you to get there if you don't need to.
• 12:33
  Let me help you ease that burden slightly and help you build a
• 12:37
  Better Business. Don't miss it.
• 12:38
  If you're a business owner, hit follow rate and review.
• 12:41
  Be kind to yourself and please charge your worth.
• 12:44
  If you do, please do drop me a message on social media or send
• 12:47
  me an e-mail. I'd love to hear how your price
• 12:50
  increases when I love data. As you can probably guess, I
• 12:54
  can't wait to hear from you and I'll see you next week for next
• 12:56
  episode. Bye.
• 12:58
  And that brings us to the end of another episode of The Three B's
• 13:01
  podcast. I hope you found it useful and
• 13:03
  that you're walking away with some motivation, inspiration, or
• 13:06
  education to help you build a Better Business.
• 13:10
  Don't forget to subscribe, leave a review, and of course, connect
• 13:12
  with us on social media for more insights, tips, and behind the
• 13:15
  scenes content. Your next step in building a
• 13:17
  Better Business is just a click away.
• 13:19
  I can't wait to connect with you and I'll see you on the next
• 13:21
  episode. Bye.