77. How to Raise Your Prices
“How do I raise my prices?” is a question I hear all the time. You all know that pricing is my jam. In fact, I’ve even created a Brainy Pricing Course that has a module on raising prices. In a recent questionstorming session with my current Brainy Mindset Course group, they asked to focus on getting past mindset blocks about raising prices. That is one of many reasons this episode seemed particularly fitting right now. It is all about raising your prices and learning to get past your own mindset blocks that have always tripped you up in the past (so you can move past them next time). If you are wondering if you can raise your prices...the answer is probably yes. As I’ve said many times, it’s not really about the price. It’s about what comes before the price and the framing of that price. I’ll get into the importance of understanding your why and the context of the price too. I talk about scarcity and how it can actually validate a higher price. I talk about why it’s okay if raising your prices is scary. It is for everyone. It’s how you raise the price and why that matters. I also share a secret tip to convey your price to your clients with confidence just like you were telling them the time or the weather. This episode should help give you the tools and encouragement to confidently make a pricing strategy plan. If you do want more pricing help, I have an awesome year end special where you can get the Briany Pricing Course plus the Virtual Workshop Bundle, and you get the Brainy Mindset Course completely free! The BIG BRAINY BUNDLE is a $1200 value for $699, and if you use the code BRAINY100OFF you can get the whole thing for just $599, or 50% off – but that deal is only through December 31 so don’t wait. Show Notes: [04:13] If you wonder if you could or can increase your prices or raise your rates…the answer is probably yes. [04:28] Pricing isn't about the price. It's about everything that comes before. If you can't raise your rates the block is often internal. [05:28] When you are working in massive volumes, small changes that are not going to be noticed much by consumers can have a huge impact on the bottom line. [05:53] Another way to look at profitability and prices is to understand what your costs are and how it all ties into the baseline question of why you want to increase the price. [06:48] Before you go through the process of raising your prices, it's important to know that you definitely could do it. [07:09] The next phase is: should you raise your prices and discovering what you are trying to accomplish. [07:18] The reason you want to raise the price is important to understand as you tackle the fears you have about raising prices. [07:36] Someone in the service industry may want to raise their prices because they're too busy. The brain will try to scare you and ask “what if I lose clients?” The answer is, it's okay to lose people because you're trying to reduce your workload. [08:28] The increase in revenue should make up for the people who leave. [08:58] Scarcity helps validate a higher price, so don't always be available. [09:08] Another reason to raise your prices is if you're not making enough profit. You need to sit down and understand your whole strategy behind pricing before you make the adjustment. [10:15] When raising your prices, know that nothing is for everyone and it's okay not to be a fit for someone anymore. [10:52] Don't tell them they can't afford you. It's their job to decide they don't want to work with you anymore. [11:10] People get more value from things that they pay more for. [11:48] Think about jeans and framing. We believe are expensive jeans are better than our cheap jeans. [12:27] Once you know you want to raise your prices and why, don't over explain and draw attention to the fact that you are doing so. [14:21] Apologies aren't necessary when raising your prices. Most people will pay the price, and some people will move on. [16:52] Some of my favorite questions to ask clients: What would happen if you charged 10 times more? What would make people happy to pay 10 times more? [18:18] If your campaign is all about price people will notice. [19:14] You can also charge new clients the new rate and phase in the new pricing for existing clients. [21:02] This can also be a chance to let a few problem clients go. Think through what you will do when people ask for discounts or threaten to leave. [22:33] Look at the competition and understand what others charge, but don't let it dominate your space. [23:10] Have a plan and understand some people won't want to pay your new rates. That's okay. They're not your people anymore. [26:00] You need to understand what is on the shelf next to your product. Consider the context of the price and what people will compare it to. [27:08] Consider search terms your ideal client will use, where your more expensive item can be showcased as the best choice. [28:32] High anchors can make something look more affordable. [29:01] Everyone hates raising prices. It's scary. Something as simple as how you present your price on a sticker can impact the sales. [30:19] Just because raising your price is scary that doesn't mean that it's wrong. [31:07] It isn’t about you – it is about the customer and what value you provide for them, which is done through proper strategy and framing as you set and raise prices. [31:31] You need to say this new price so many times that your brain automatically thinks of the new price as the right number and you can say it as if you are saying the weather or time of day. [32:31] Confidence is the number one important thing when talking about pricing. Use a confident and friendly tone and ask for the sale every time. [34:22] If you want to raise your prices, you absolutely can. You always can, and it is best to have a plan to make sure you are doing it for the right reasons and you know how you will react if you do get questions or pushback. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show. Links and Resources: The BIG Brainy Bundle use the code BRAINY100OFF by December 31st to get all three pieces for just $599 (50% off!) I can’t wait to have you join us in 2020. Master Your Mindset FREE mini-course Episode 43. A Guide for You to Create a Brainy Brand Episode 47. A Behavioral Economics Analysis of Costco The $40,000 Olive: How Entrepreneurs Can Spend Time Saving Money Melina@TheBrainyBusiness.com Episode 16. Framing: How You Say Things Matter More Than What You’re Saying: A Behavioral Economics Foundations Episode Episode 11. Anchoring & Adjustment: The 1 Word That Increased Sales 38%: A Behavioral Economics Foundations Episode Choosing a Pricing Strategy for Your Small Business Is Daunting. Here's How to Choose the Right One The Font Size on Your Price Tags Could Be Reducing Your Sales by 28 Percent. Here's How to Fix It Episode 19. Herding: Come On And Listen…Everyone Else Is Doing It: A Behavioral Economics Foundations Episode Episode 31. Mirror Neurons: A Fascinating Discovery From A Monkey, A Hot Day, And An Ice Cream Cone: A Behavioral Economics Foundations Episode