How to raise your price without losing clients

Here's how to raise your prices without losing clients. And if you see me looking down here, I just have a couple notes that I've taken from working with over hundreds of video business owners in their business, working with people who are scared to raise their rates, scared to charge more because they're scared they're going to lose clients. And if you're maybe in that position, then this video is going to be for you. So I was working with one of our clients, Brandon, and so he works with home service companies, he works with home improvement companies, painting companies, anybody who does like a home service, home service type job. And I was working with him and he was just saying he's getting super busy, he was getting super overwhelmed. He had so many clients and he didn't really know what to do next. And so as I was speaking with him, I took a look at the numbers and I said, okay, let's look at what is the close rate? What's your price point? How many leads are you getting? And he was getting plenty of leads, he was getting plenty of calls. And then I looked at his close rate. His close rate was like 60 to 70%. And I said, brandon, here's the first problem. Like if your close rate's above 40%, the first thing I typically look at is like, why don't we keep increasing our price points? Why don't we keep increasing those and trying to get that higher and higher and higher to drop your close rate to like 40 or 30%? And his thing was, well, I'm worried I'm going to lose clients. And I said, yes, you will. But that's kind of the point because at the end of the day, we only want to work with people who are higher end clients. And it's easier to scale a business by just simply increasing the price point rather than continuously trying to get more people, you know, having operations in the back end getting bottlenecked because you're not charging enough, not making enough profit per customer. So what we did is we took his prices and we added 20 to 30% of those prices and did that. What happened was, is his profit per customer increased. It almost doubled as a result of that. And because we did that, he had less clients, but he was making more money. And so we took that price point and we just increased it, increased it, increased it. We tested new price points and he was like, well, how do I increase my prices? I said, well, you know, at the end of the call, when you close them or when you're telling them how much it is Just say a different price. That's all you have to do. And for him, he was like, okay, I'll try it. He tried it. He increased the price. Somebody closed, he increased it again. People, people kept closing. Did he close less people? Yes. Did his close rate drop from 60, 70% all the way down to like 30 to 40%? Yes. But that's okay. That's the point. And I think for a lot of people, they are scared that they're going to lose people. And the reality is like, you will, you will lose people, but you don't want to work with everybody. It's easier to operate at the higher end in the premium side of the marketplace than operate in the lower end when you have to deal with all these low ticket clients who want the world but don't want to pay anything for it. And I think for a lot of people, including myself, I was worried about that. And even doing it in my own business, when I increased prices, client results actually got better because I was working with people who already had a budget set aside, already had a team set aside to help with this, already had implementation pathways for the videos that I was going to create. And so when I increased the price points, it was easier because those people got better results. So I had to do like physically less work. They got better results and the clients were easier to work with and I made more per client that I actually worked with. And so I think for a lot of people, they get scared of doing that, scared of increasing the price point. And I'm just here to tell you, like, try, just test it, test increasing by, I would say, 10% per call. And then as you continue to increase that, just monitor your close rate. Make sure you're tracking the close rate and tracking how much you know, how many deals you're closing out of how many calls you're taking. And if that close rate drops below, you know, 10, 15%, then bump the price back down again and go back down from there. So all that to say, like, you don't want to work with tons of clients, you want to work with the right clients and you want to work with the clients who are going to pay you the right amount of money. And if a client ends up pushing back, that's okay. Like, you're not meant to work with everybody. And the last analogy I'll kind of leave you with is like, if you look on Amazon and you have like two lamps, right? There's two lamps on Amazon. One of them costs a thousand dollars, one of them costs $100 they look exactly the same. Which one are you going to think has more value? Obviously the one that has $1,000 and the price tag attached to that because it's physically a higher ticket price point. I'll leave you with that. And if you want our help raising your rates, increasing your price points, and making more per client, click the link below. Schedule demo with our team and if not, keep enjoying the free YouTube videos and hopefully these are helpful for you guys.