Yesterday, I talked about putting barriers in front of yourself and creating your own restrictions – because they’re the only real ones you face. The ones you create in your mind.
Everything else is just an excuse (and yeah, I don’t care if that “triggers” you, or whatever – it’s true. I know when I’m making excuses).
Well, I got an email a couple of days ago from Louise, a business owner who reads my emails. I’m sharing it with you because I want you to see what taking action can do for you.
I read your emails every morning before I start work and always think I’ll email back and then I don’t for whatever reason.
So here it is a reply at last!
I find everything you say incredibly useful and really enjoyed reading your book. I’ve got a bit behind with my book due to a recent death but started back on the book wagon at the weekend so hope to catch up in the next few weeks.
The main thing I wanted to tell you this morning is that we did put our prices up and as you predicted it’s been fine.
We had already discussed doing it and had put prices up before I read your book. Your book and emails though concreted it for us. We stuck to our decision.
So what did we do, we put our hourly rate up from 35 to 39. I don’t think anyone has noticed.
We put our low cost website package up from a starting price of 650 to 850. Had a few twitches from people but it didn’t put them off.
And finally we put our custom built websites up from a starting price of 1100 right up to 2700. A massive increase. We did have a bit of a gap with these people didn’t bite for a while and it did worry us but we stuck to our guns and we have now completed 2 sites at this price with one more I’m the pipeline.
Like you say the ones that don’t want to pay can jog on. My whole angle is that if they pay more they will sell more. If they are not interested in increasing their sales and making more money doing less work then I’ve decided they are not for us.
Have a great day.
This is just bloody brilliant. Well done Louise. In one simple action – raising her prices – she’s increased her profits by a significant percentage. I can’t say by how much, because I don’t know what her overheads and profit margins are. But I do know that by increasing her prices, the extra revenue is pure profit.
Which is awesome, right?
You should do the same. Just like Louise, you could add a hefty percentage onto your profits overnight.
But don’t stop there (Louise shouldn’t either). Because at some point you’ll make the jump up to the type of clients who are willing, able, and happy to pay the really big bucks, but who won’t look at you while you’re still in the lower echelons.
You see, I’m not flashy – far from it – but if something seems too cheap to me, I’ll walk away. It’s my perception of quality. And often, the less expensive stuff won’t even hit my radar.
I’m not deliberately looking to spend as much as possible, and nor are most other buyers. But we just have price bands that start higher and finish higher than the lower slope people.
I’m sure (I hope) that Louise is great at what she does… but I’m in the group of buyers who wouldn’t see her offering because £2,700 is very inexpensive for a custom-built website.
See what I’m getting at?
At some point, you hit the next level of shoppers, whatever your industry.
So don’t stop raising your prices until the sales you lose outweigh the increased profits you’re making. Then you can ramp it back a little, or enjoy all the extra time you have sloshing around.
What action are you going to take today? Take a leaf out of Louise’s book and raise your prices. It’s not just me saying it; she said it herself – barely anybody noticed the price rise, much less complained about it.
Feeling nervous about putting up your prices? Grab a copy of my book, I go through the process in detail.
Vicky Fraser is a copywriter, author, and entrepreneur. She really did run away with the circus… but when she’s not swinging from a trapeze, she’s showing other copywriters and small business owners how to work with better clients, make more money, and stop missing bathtimes, first words, and dinners with angry partners. In fact, she wrote the book on it. Get your copy here.
PS Tomorrow, I’ll share a story from one of my Inner Circle Members that made my eyebrows shoot into my hair. A story that I hope will get you seriously thinking about buying a copy of my book. You can do so here.