Why Charging More Should Be Your Goal
Entrepreneurs who charge more their services allow them to break free from the downward spiral of undercharging. Although it may give you a slight edge in acquiring clients, charging less than intended often leads to operational instability and uneventful long-term business relationships.
On the other hand, raising prices can help boost profit margins, provide scalable strategies, and improve flexibility to navigate unforeseen challenges without compromising profitability. If you're interested in learning more, keep reading to learn the five things that justify higher prices to help you attract the right clients.
1. Personalization & Application
Avoid lowballing your services, hoping to gain an edge over the competition. Doing so may put you in a difficult situation to increase prices over time.
Instead, opt to charge more, particularly when offering personalized services and practical applications. Offer high-value services, such as business coaching, custom website audits, and 1-on-1 training sessions, creating additional needs for your services.
Remember, people don’t only want information, as they’re looking for features with long-term benefits. Introducing higher price ranges for your services is an approach that won’t only attract clients who value in-depth, individualized attention but also positions you, as the entrepreneur, as a premium service provider.
2. A Curated Community
Data from McKinsey suggests that more people are looking into purchasing curated content to acquire more personalized product selections. The information mentioned in the study indicates that product and service value generally come first over the price. With that, entrepreneurs who typically charge more can attract serious and committed clients, promoting long-term business relationships.
For example, private mastermind groups and exclusive membership sites typically generate curated communities, providing networking opportunities, shared experiences, and access to expert insights. Business owners who don't mind charging high prices (as long as they provide excellent value for their products and services) can actively engage with clients who are invested in growth and success.
Remember the following words of Business Network International (BNI) founder Dr. Ivan Minster when thinking about creating a curated community for your business: “People love to buy, but they HATE to be sold to.” This statement aligns with the idea that scarcity can help breed engagement as you gain exclusivity over a particular niche by providing high-value offerings to like-minded individuals.
3. Accountability & Support
Some entrepreneurs fear charging more, as doing so can lead to higher expectations. After all, many people compare expensive costs to high-value offerings. Living up to those beliefs can yield better long-term results, fostering a culture of accountability.
Hardworking business owners will then become motivated to meet these elevated standards, leading to improved service quality and client satisfaction. Andy Bailey, author, CEO, and head coach of business coaching firm Petra Coach, said,
“Accountability isn’t about punishing mistakes. It’s about giving everyone the opportunity to set goals and find success in a transparent way and with the support of your entire team.”
With this mindset, businesses won’t be meeting expectations but exceeding them, which is essential for long-term success.
Additionally, setting higher-than-average costs can also help address the lack of external motivation, which is a relatively common entrepreneurial hurdle. Note that many entrepreneurs, especially new business owners, often find themselves struggling to maintain discipline without specific systems in place.
By charging more, you can invest in various support structures, such as business coaching programs or peer networks, providing guidance and accountability. In turn, it fosters regular feedback loops, ensuring transparency and course correction for various services, increasing value and long-term arrangements for new and existing clients. Some examples that can greatly benefit from this action include fitness coaching, skill-based mentorships, and business coaching programs.
4. Done-for-You (DFY) Services
Consider increasing your prices by personalizing your services and having them tailor-made to specific clients. Doing so creates DFY services, promoting numerous advantages to your clientele looking for convenience and results.
Remember, many clients look for solutions that can drive reduce woes related to time, skills, and interest. For instance, busy professionals often prefer to outsource services, such as website design, social media management, and automated marketing setup.
Recognizing this demand allows entrepreneurs with the right skill sets to leverage their expertise and provide those abilities as premium DFY solutions. It’s also why sites like Fiverr exist, as they bridge the gap between clients and skilled professionals for various tasks, like logo designs, content writing, or automation setup.
Note the words mentioned by Rory Sutherland, the Vice Chairman of Ogilvy Group, in his TED talk:
“The power of reframing things cannot be overstated.”
Through his statement, Sutherland frames DFY services as providing solutions that drive expertise and save time. Clients can then perceive these services as quality and reliable investments and not as expenses.
5. Access to YOU
Last but not least, charging more can help bridge the gap between you as an entrepreneur and the right client by enhancing trust, exclusivity, and personalized value. As a business owner that places your services in high regard, you can convey expertise and commitment through personally-tailored costs and clients’ willingness to pay for tailored solutions.
For example, offering VIP coaching or small-group access fosters a sense of exclusivity, which can make clients feel prioritized. Robert Neely, a Forbes author and Director of Marketing at Lima One Capital, said in a post that businesses that communicate a “mutually beneficial message” while balancing client desires with strategic value often result in stronger loyalty and satisfaction.
Offering premium services ultimately leads to clients seeing your business as a highly valuable entity. Maintaining deeper connections with your target market and existing clientele can also help develop and maintain deeper connections, empowering both parties with actionable guidance and effectively aligning strategies with goals.
How to Implement These & Charge More Today
Charging more for your professional expertise is possible, and you can implement various techniques to help you achieve that objective today! Here are some tips to charge higher prices to your clients:
- Focus on value, not hours. Adopt value-based pricing instead of hourly rates to price services accordingly.
- Differentiate your offerings. Offer premium features with unique features to justify costs.
- Bundle different services. Create packages that combine multiple offerings to offer a comprehensive solution that addresses several of your clients’ needs.
- Increase prices gradually. Implement incremental price increases to monitor sales and profits, allowing you to adjust strategies based on feedback.
- Reset expectations. Understand that charging more can help reset a buyer’s expectations, promoting them to rethink their needs, introducing additional opportunities.
- Test premium offers. Introducing highly valuable offerings allows clients to assess their willingness to pay for enhanced services, reducing risks and personalizing offerings to those specific buyers.
