Every year I increase the prices of my services and hourly rate and I strongly recommend this practise for any service provider.
Here are the reasons that you need to be increasing your prices:
1) You’ve worked an entire year, stretching your skill level, learning new things and developing your craft. After an entire year of work I personally see a massive increase in the quality of the work I deliver. Since I’m delivering a higher quality service than I was offering a year prior, the price needs to reflect that increase.
If you’ve worked for the past year, you too have also increased your skill level and if you’re truly honest about the amount of learning you do, and how you now incorporate all your new skills into your work, I’m sure you’ll see that you deliver a much high quality service than before.
2) Offers that you quoted the previous year need to have an expiry date and for me, the natural price increase that I choose to do every January gives me a chance to reach out to all the past prospects and let them know that the offer quoted to them the year previous is now expiring. I also give them a month to decide to act on that original offer until it’s no longer valid. I think this is extremely thoughtful and friendly, while at the same time it enables you to hold professional boundaries. This is a great example of authentic and gentle scarcity.
3) You’re a professional and professionals have steady increases in salary over time based on the level of experience. If you were to work in a job you would most likely receive a salary increase or a higher and higher bonus yearly. Value yourself and your professionalism enough to realize that you also deserve this salary increase because your experience level grew.
Is there ever a moment to decrease your prices rather than increase them?
I used to charge $500 for my standard nutrition protocol package when I was a nutritionist. My priorities have now shifted to web design and I now charge $50-$75. Why do I choose this? Because I only take on a couple of select people to consult with on nutrition, and I made a personal decision that I want the entire globe to have access to solid nutrition advice for free. The small fee is my way being compensated for the energy I put into it because it’s a bit exhausting creating protocols. My priorities and values shifted, I don’t want to make a living from nutrition consulting, and I want everyone to have access to good nutrition advice and therefore my price decreased dramatically.
How much of a price increase is acceptable?
You don’t have to increase by much. Actually, the price of my 1:1 service package only increased by just over $600 this year. That’s not a huge price increase considering the overall price and the increased level of quality that goes into my work at this moment. In the past I have made over $3000 leaps in that same service package price.
Determining this needs to be based on examining how it felt to charge your lower price the year previous. I made those $3000 leaps because I was way under charging when I worked out the hourly rate. I was exhausted and the price wasn’t sustainable. I discovered that the fair price was actually $3000 higher than the year previous. This year I determined that the fair increase was $600.
Your increase will depend on the reflection you do and the questions you ask yourself:
- “Is this rate sustainable or will I burn out if I even come close to my income goal?”
- “Was I undercharging because I wasn’t confident in what I was offering last year?”
- “What was the result of charging that lower price?”
- “What are my fears about increasing my prices?”
- “Who did I work with at that price and who do I want to attract with my new price?”
Isn’t is greedy and selfish to charge more for the same thing?
I already covered this in the first reason for increasing your prices. You’re not offering the same thing. You have grown and evolved, you’ve learned and experienced. You are more valuable doing your work than the year previous. Every year you get better and better.
If you believe that exchanging goods and services for money is greedy or selfish, or you believe that charging enough for your transaction to be a fair exchange is greedy and selfish than you definitely have some money blocks going on and as long as you believe those things, you’re preventing yourself from making as much money as you want doing what you want.
A Great Way To Increase Your Prices
I made the leap into charging premium prices for my services when I created my full service website package that’s pretty much everything you could ever need in a website. It includes 1 year of tech support, I work with a professional writer to write the website, there is massive strategy that goes behind creating it, and the quality of workmanship in the design and development is insane (if I do say so myself).
I created a package that was worth so much more in value than I was charging in price. The value of the package goes up every year but the price doesn’t increase at the same rate the value increases, therefore I’m confident about the price I charge. Adding value is the key!
If you’re interesting in creating packages based on your services and offerings, that’s something that I help with in the full website service I offer. You only need to arrive with a vision and then you and I create a system for making that vision a reality. We would create the package, and the copywriter will write your sales page, while I’ll design and develop. All in the full website package! Click here to contact me if you’re interested.