IAM2736 – How Raising Your Prices Can Help Your Business Grow

The Fear of the New Number

Raising your prices can feel terrifying because of the underlying belief that everyone will leave and you will have to start over. You might even struggle with the internal doubt that you aren't worth the new number you’re setting. However, the reality of a price increase is often much less dramatic than the fear suggests. While you may lose a small percentage of your client base—perhaps around 10%—those who remain are typically the individuals who are more committed, happier, and significantly easier to work with in the long run.

Filtering for Value

A price increase acts as a natural filter for your business, helping you distinguish between “price shoppers” and “value seekers”. The clients who leave solely based on a new rate were likely not your ideal clients to begin with. By letting go of those who do not value your expertise, you create the space necessary to lean deeper into your service offerings for your existing and new clients. This shift allows you to move away from a volume-based mindset and toward a value-based one, where your new clients come in at the higher rate with zero pushback because they believe in the results you deliver.

Pricing Your Evolution

Your pricing should be a dynamic reflection of your professional growth, experience, and the higher level of results you provide. To transition effectively, you can give existing clients advance notice or even “grandfather” them in for a period to maintain the relationship while you shift your model. Ultimately, you shouldn't be afraid to charge what you are actually worth or what you are growing into. By aligning your rates with your current expertise, you gain a new level of confidence that transforms how you show up for your business and your clients.

Previous Episode: https://iamceo.co/iam2731-why-not-charging-from-day-one-might-be-hurting-your-business/

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Transcription:

Gresham Harkless 00:00
Raising your prices can feel terrifying because you think everybody is going to leave. You believe that you're going to lose all your clients. You have to start over and maybe you're not even worth the new number anyways. But here's what can actually happen when you raise your prices. You can lose maybe 10% of your clients. 90% of those who stayed were happier, more committed, and easier to ultimately work with. Maybe you got rid of the people that weren't your people by doing that. Because the reality is that the people that leave based off price weren't actually your ideal clients anyways.

They were price shoppers, not value seekers. If you're building something meaningful, you're in the right place. This is the I Am CEO Podcast. I'm Gresh, and for over a decade, I've had the honor and the privilege of learning directly from CEOs, entrepreneurs, and business owners just like you on how to build. After recording more than 1,600 episodes, one thing has become clear. Success isn't about following someone else's blueprint. And as I like to say on the show, if you run your own race, you can't lose. Even when you feel the journey should be a straight and linear path, what I've come to find out is success is a lot more like a plate of spaghetti. So this special segment and episode, I'm starting to curate and share some CEO hacks and CEO nuggets that I've been dying to share, drawn from thousands of episodes with phenomenal guests that have provided awesome value on the show, but also my 10 years of business experience as well too. These lessons are designed to strengthen the foundational principles that every business is built on and guided by a simple equation that we always go back to with our content. Visibility plus resources times connections equals success.This is practical wisdom you can apply almost immediately. So be sure to check out the show notes for more resources and next steps on how to level up. And of course, enjoy this special episode of the I am CEO podcast.

Gresham Harkless 01:56

Raising your prices can feel terrifying because you think everybody is going to leave. You believe that you're going to lose all your clients. You have to start over and maybe you're noteven worth the new number anyways. But here's what can actually happen when you raise your prices. You can lose maybe 10% of your clients. 90% of those who stayed were happier, more committed, and easier to ultimately work with.

Maybe you got rid of the people that weren't your people by doing it. Because the reality is that
the people that leave based off price weren't actually your ideal clients anyways. They were price
shoppers, not value seekers. And here's what doing it can do. You can give existing clients an advance notice to let them know. You might even grandfather some in during a transition period and you want to be clear
about why that increase made sense. Better service, more experience, higher results. then you stick to it. And you realize that now that you have this new rate, you also have this new confidence and clients come in, new clients come in at the new rate with zero pushback because they believed in the value that you were delivering. It gave you space to be able to lean more into the service and offering that you have for your existing clients and your new clients. Your pricing should actually reflect that.It should reflect your growth. Don't be afraid to change and charge more of what you're actually worth and what you're growing into or have grown into.