Once a client is ready to raise their rates, there’s a panicky moment I brace for, the one where they’re freaking out, saying things like:
How do I tell my clients?!
They’ll all leave me!
Maybe I’ll wait a few more months to do it!
So if after the last few articles on pricing (here and here) you realize it’s time to increase you prices, I’ve got you covered in the next step: telling clients you’re raising your rates. And that’s exactly what I’m going to help you with today.
I am going to walk you through exactly how to increase your prices and tell your clients, so they’ll want to stick around no matter what you charge. I’ve got you covered on this one!
Telling Clients You’re Raising Your Rates
Now that you know what you’re going to charge, the next things you need to do are figure out when your prices are going up, how you want to transition your current clients, and how to tell your clients about the change.
Let’s dive in.
Step 1. Set your new rates
The next questions are:
1. When do you want to begin charging new clients this new rate?
2. When do you want to your current clients to begin paying this new rate?
It’s okay to give your current clients some time to transition to the new rates while also charging new customers your new rates. There is not a single right way to do this; whatever works for you and your business is perfect.
It’s important to pick a date for each rate increase (for new clients and current clients) so that it doesn’t drag out too long.
Step 2. Establish a transition plan
Now that you know what you’re charging and when you’re going to charge it, you need to set your transition plan.
You need to determine:
1. When do you want to tell your new clients about the new rate start date?
2. Will you give them an opportunity to purchase another package or set of sessions at the old rate? If so, by when do they need to make that purchase and by when do those sessions need to be used?
Sorting through these details will allow you to create a clear transition period for your clients, plus an incentive for them to stick with you!
Step 3. Update your website + tell clients you’re raising your rates
The next step is to let everyone know your new rates. This includes updating your website so new clients will see your new rates and telling your current clients that you’re increasing your prices.
Step 4. Final reminder to clients on rate change
Once your website has been updated and your clients have been notified, you only have one step left: remind your clients one last time.
Most of us put off making decisions until the last possible minute. If your clients are busy, they may have forgotten about the deadline to purchase another package at the special rate. It’s your job to remind them.
Send another email telling clients you’re raising your rates and that you’d love to keep working with them.
The Art of Notifying Your Clients
You know you need to tell your clients you’re raising your rates, but my guess is that your stomach was churning at the mere thought of actually telling them. It can seem nerve-wracking to tell your clients that you’re charging more, but it doesn’t have to be so hard!
Crafting an email in just the right way can make a world of difference in helping your clients transition to your new pricing.
I’ve asked Kendrick Shope, Founder of Authentic Selling, to share a template you can steal to use when you need to tell your clients about a rate jump.
Here’s how Kendrick suggests you notify your clients.
1. Grab attention quickly with a paragraph that things are changing and how it will benefit your client. For example…
I’m excited to update you about some changes I’m making to my services that are going to help you [insert the desired outcome of your customer].
2. Quickly establish your credibility.
I’ve been lucky to work with some of the most amazing women and have watched them [insert specific results from your testimonials] as a result of our work together.
3. Plant the seed with why you set yourself apart from the rest.
As I continue to grow, it’s my desire to continue to offer unmatched service and results that improve my clients’ lives.
I know that one of the reasons my customer experience drastic results is [insert education, level of service you provide, or something that makes you different from others in your industry].
4. Announce the increase.
Effective [insert date], [insert package name] will increase to [insert new price].
5. Reward your customers’ loyalty.
It’s my goal to reserve [insert number of spots] remaining spots at the current rate of [insert your price before the increase] for you before the price increase is officially announced on [insert date you’ll announce or publish the increase].
6. Close the email reminding people of the results you create.
I’m thrilled to continue to help you create [insert desired outcome from testimonials].
Please let me know if you have any questions or would like to hold one of my open spots. I’d love to work with you.
It’s amazing how clear and simple it can be to tell clients you’re raising your rates! Easy, right?
Are You Ready?
For the last three weeks, I’ve walked you, step-by-step, through everything you need to know to perfectly price your services and implement them in your business. Are you ready to take action?
How do you feel about your pricing? Are you struggling or are you ready to make a change?
What pricing success stories do you have to share with us?
I can’t wait to hear your thoughts in the comments below.
As always, thanks for reading and contributing!