Eric Deeran shows how raising prices can transform a service business. An agency making $185K monthly from 80 clients at $2,500 each could hit the same revenue with just 18-20 clients at $10K each, with better margins and easier clients to manage.
you could simply double your business by doubling your prices, and you would probably enjoy the clients you work with more because of that. I've had this realization so many times in my business, and I've helped a lot of clients do the same. It really can be as simple as just raising your prices, as saying, hey, instead of charging $5K a month, we charge $10K a month, and It literally can't be that simple, and if you do that, just expect that you might have to take twice as many calls to close one deal, but that client that you work with is going to be A, a better client, B, they're going to be easier to work with, and C, you'll need less people that you have to hire to service clients and make more money. I was talking to an agency a while back and they were doing like $185K a month, but they had 80 clients. And their average client value like paid them $2,500 a month. And it was, it just, it was an absolute nightmare. They had to come up with all these systems to like keep people in line. They had to hire a ton of people. They had to manage a ton of people. They had all this overhead. Their profit margin wasn't that great. And I think it's just a good reminder, like instead of taking 85 clients or 80-ish clients to make $185K a month, Like you could hit $185K a month with like 18 clients paying $10K a month. And it's like those 10 clients paying you $18K or those 18 clients paying you $10K a month are gonna be a lot better than the clients paying you $2,500 a month. Sorry, my brain's tired today. A lot of calls and a lot of content. But when you think about it, it's like, would you rather work with the client at $10K a month or $2,500 a month? It's like, obviously you'd rather work with them at $10K a month, but I think because it's so— yes, it's obvious, but like so many people don't do it, including myself. And when I started raising my prices, it was just way easier to get better clients. You need less deals to make more money every single month, and you watch your profit margin get bigger and bigger and bigger because instead of needing, you know, at those 80— the 80 clients that they had to make $185K a month, they might need— I'm just throwing— I don't know exactly, but let's say they need 50 team members to service those clients? Well, if you had 18 clients at $10K a month, you might only need like 10 clients or 10 people to service those clients, like a lot less people. And so it should be a game of like, how little client— how, how few clients can I take on at the highest price point possible so I actually love my business and I don't end up hating it? So just food for thought. Hopefully it helps someone out there, just raise the prices. I know it's scary, but there are people who will pay at every single price point. You just might have to take more sales calls to find them. That's it.
