HOW TO RAISE YOUR SERVICE FEES WHILE ATTRACTING YOUR DREAM CLIENTS

By Leonard H. Grape

After almost 4 years of running my agency, I found that increasing my service fees was one of the most effective ways to boost profitability.

However, in my journey of raising prices and coaching other service professionals to do the same, I discovered that several factors prevent others from increasing their fees.

Contrary to popular belief, being the ‘best' in your field is not a prerequisite for justifying higher fees.

Some feel that they cannot charge high for the service that they are offering.

Others feel it is unethical to charge more and earn higher income.

Ultimately, if you hold yourself back from raising your prices, you will find it difficult to earn meaningful income from your service business.

In my experience, raising prices can help you attract your dream clients and weed out cheap clients who are generally more challenging to work with.

If you are thinking about boosting your revenues but are unsure how to raise your prices, this article is for you.

Let me share some key pointers on how you can raise your service fees while not repelling your ideal clients.

1. Challenge Your Perceptions
   

Pricing is highly influenced by your self-esteem.

While there are economic principles that can guide your pricing strategy, in the service-based industry, it's largely a factor of your perception.

Do you feel your value is based on time and material or the results you generate?

Do you find it unethical to apply different pricing based on the client?

Or are you the type who thinks earning more is bad?

Start by challenging your perceptions and getting clear with your pricing intentions.

You'll be held back if you think you can only earn so much.

At the beginning of my agency career, I needed to figure out how to price our services.

With a lack of confidence, I was happy to charge $100 for my copywriting monthly retainer.

When I formed my corporation, I started charging $6,000 for a 3-month social media marketing project.

I improved my mindset from scarcity to an abundant view of things along the way.

I knew I had what it takes to charge high. It’s true for yourself as well.

So revisit your perceptions and your relationship with money.

Assess your self-belief and confidence.

That should be the starting point of your pricing exercise.

2. Mitigate Risks

Pricing is risk-taking in the sense that uncertainty is part of the process.

And many of us are risk-averse.

What if nobody buys your service because it’s too high?

What if you charge too low and incur cash flow problems?

What if your pricing model does not fit with the market climate?

It's almost impossible to guarantee price effectiveness.

The first reason is that price and value are subjective.

Second, selling capability affects the way your prices are perceived.

So how do you then mitigate this risk?

In my coaching program, I teach my clients the 3-tier pricing approach.

It’s an effective way to test price boundaries while attracting your clients.

Here’s a loose example:

Say you are only comfortable with charging $2,500.

But in the back of your head, you know your work is worth $10,000.

You can offer multi-tier options to let your prospects decide which would be best for them.

You can also have a high anchor to set the stage for your pricing options.

By offering different pricing options, you change the narrative from “expensive or cheap” to “here are three different price points with varying values.”

It mitigates the risks for you and your prospect because it is no longer a “yes or no” conversation but a “hey, let’s find which works best for you.”

Simultaneously, you can gauge the pricing pulse of your market depending on which they would prefer more.

 3. Uncover Purchase Drivers

Why do you think clients hire someone for a service?

I see a lot of service professionals make this mistake.

They think clients want the service, so they focus on selling a service.

The more powerful and effective approach is to find your target market’s purchase drivers, which are generally anchored on a transformation.

Or the results that come from solving their business challenges.

If you’re a LinkedIn ghostwriter, don’t sell copywriting.

Sell revenue generation.

If you’re a researcher, don’t sell consumer interviews.

Sell certainty.

Remember, pricing is perceptive.

It’s hard to quantify happiness and certainty.

But if you mix that with quantitative goals and uncover the true motivators behind their purchase interest, your selling results will improve dramatically.

Do you want to add value and close more projects?

Start selling transformations through your service.

4. Build Your Confidence

Returning to what I said at the start of this article, your self-esteem highly influences pricing.

It means that low self-esteem hinders you from charging higher.

Low self-esteem also influences how you behave in sales conversations.

Your ability to project an expert and neutral stance directly affects your ability to close a sale.

Do you think you’re just a service provider? Or an expert?

Do you perceive your prospect as the prize? Or is it a 2-way vetting process?

There are tons of ways you can build your confidence.

If you’re starting, start by getting your first 3 to 5 clients.

Do great work for each. Ask for feedback. Request for testimonials.

If you’ve been at it for quite some time, charge higher with every client opportunity.

Enhance your skills. Deepen your knowledge. Interact with successful folks.

Raising your prices is not only mandatory for growth.

It is also a critical strategy to attract high-ticket clients.

There is a perception that comes with pricing.

Do you want to be seen as a valuable service professional?

Your price can influence that perception.

So aim to increase your fees regularly.

Raise your prices and you'll attract better clients.

In summary:

• Challenge your perceptions

• Offer a 3-tier pricing

• Sell a transformation

• Exude confidence

If you need a plan to increase your fees and attract your dream clients, grab your FREE blueprint.

Download your copy of How to Build a Thriving Service Business: The 5-Step Blueprint.

But if you’re ready to fast-track your growth and transform your service business in the next 6 months, consider my 1:1 The Service Business Growth Coaching Program.

Alternatively, you can start with a 60-minute growth coaching call that only requires minimal investment and time commitment. Book a call here.