Do you know how to raise your prices? Because the chances are, it’s probably time! Especially if you’re a service provider, you need to be raising your rates at least once a year, so let’s look at exactly how to do that…
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Things You’ll Learn in this Episode of Doing it Online:
- A practical way to know if your market is ready for a price rise…
- How to test a new price before you commit to it…
- 3 unique approaches to raising your rates or prices…
What we’ll look at today are universal truths, so no matter how you are packaging up your expertise and your time, the following applies to both online course prices and even service providers and their offerings…
So, let’s dive in!
Kate Caveat…
But first, as always, please remember our number one rule here is to never do anything that feels inauthentic. Your marketing should feel great. And the way you sell should feel great.
That’s the foundation for every marketing strategy you use in your biz, including raising your prices.
So keep that in mind as you read on…
Why is it important to raise your prices?
There’s a couple of reasons why it’s critical, as a business owner, to raise your prices…
- Costs (of everything) increases over time. Your software, paid traffic, living expenses, the prices all go up and that decreases your profit. If bread can go up every year, then so can your prices.
- Your expertise, learning and experience also increases over time. And so your rates and prices should reflect that. This is something we see with our Certified Funnel Pros, as they go through the certification, their skills and confidence both increase massively, so we help look at their pricing, as they’re now a premium service provider and should be paid that way. (Most double their prices!)
- The delivery and value of your program will most likely have improved, and increased, and been added to, (if not, maybe sort that out first!) and so the experience is more valuable and more worth a premium price…
And because of all the reasons above, if you are not increasing your price over time, it’s going to feel less fair on your end and you are going to want to deliver it less.
Which isn’t good for anyone.
How to know if it’s time to raise your prices…
A quick little trick: look at your sales (need a min of 20 – 30 to determine an average), and see how many ‘Pay in Full’ payments there are vs split payments, and if there are more ‘Pay in Full’ payments coming through then there’s probably space in your market for a price increase.
How do you go about raising your prices?
So how do you raise your prices, especially in an economy like this one? Well, there are some clever tips + strategies for approaching a price rise in your biz which we’ll look at right now…
(We go into these in great detail inside eCourse Empire, but this gives you a bit of an overview.)
Option #1: Test before you invest model
Price testing is something all big companies do, and it involves testing a new price with a small percentage of your audience. To give you a practical example, McDonalds might price test by increasing the price of a Big Mac by 20 cents in certain regions or a certain number of restaurants only and test how that affects their sales.
The easiest way for you to price test would be inside your evergreen funnel if you have one set up. You’ll already have a baseline, and know how well it converts, so when you make any changes the results for that change will be clear. It also means that the test will be only visible to people in your funnel, not in the public space until you’re happy with your new price.
I go into this model in more detail in the episode and give you some more ideas on how to make it work for you, so give that a listen.
Option #2: Run a ‘last chance’ launch…
We teach more of an evergreen approach to launches, which is more about smaller, effective promotional sequences throughout the year. Rather than ‘all singing, all dancing’ launches once or twice a year that come with heaps of pressure.
And a price increase gives you an amazing reason to have a mini-launch or promotion. It’s kind of a reverse discount. You let people know this is their last chance to snap up a place in your amazing program (or services) before the price goes up!
However, this option is really only if you’re pretty sure about your price rise. Like if 80% of your purchases are paid in full, and you know it’s time to up it.
Option #3: Invest in your own upgrades…
This one is more for the service providers out there. If you’re reading this and thinking… ‘Yes! I think it’s time to increase my prices but I don’t know how I feel about it…’ then we suggest upgrading your own skills.
It’s a powerful way to say to the world (and yourself!) that your work and hours are more valuable. Your knowledge and expertise have upleveled, so raising your prices totally makes sense and you can feel really good about it.
Like we said before, we’ve seen this in a massive way with our Funnel Pro grads. Most of them end up doubling their prices, (and then sometimes doubling them again!) because the strategy and skills they can now bring to the table are so freaking valuable…
…And they now have the confidence to match the price they ask for.
If you’re a funnel builder or an online business coach and you want a clear way to show the world you’ve upleveled, then a certification in a complimentary field is an amazing way to do that.
Our Funnel Pro Certification Program might be just what you’re looking for. It’s an amazing 12 weeks of upgrading your mindset, your knowledge, and your expertise. Our next cohort is starting very soon! So if it sounds like something you’re keen to learn more about, check out all the details here and get your application in!
