How long are you struggling to grow your business? How long are you fighting this? Really think this through because I want you to make a solid reflection here. Think. How much TIME have you been spending working day and night, night and day, everyday, expecting for a miracle like a certain customer knock on your company’s door saying he’ll pay you more money?
So this leads us to a simple question…
QUESTION: Are you AFRAID of raising your fees for your clients?
Answer me this. Or I could guess. Do you want me to guess?
OK. In that case, your possible answers could be:
- Yes, sometimes.
- Maybe…but why you ask?
- No. I’m freaking awesome and I deserve respect and high-payments, so I charge high fees anyway.
Well, I asked you this because A LOT of entrepreneurs nowadays let their clients DICTATE their rhythm of success. They control the money, the payments, and sometimes even the DATE they pay us! And since MONEY is a decisive factor that can give you leverage in your businesses and place you on the next level of the game, we sometimes are afraid to give ourselves a raise.
This mindset, this CULTURE is what really KILLS your business and its chance to grow.
But not anymore.
I will deconstruct with you the most common reasons that may be blocking you from charging more money from your clients and I’ll also HELP YOU understand WHY it doesn’t make any sense at all to keep this doomed-to-failure mindset.
Because you are an entrepreneur.
And you deserve to grow if you are a hard worker.
So let’s see if you’ll relate to this article.
Because even I had some of these doubts and fears in the past.
#1 – ARE YOU AFRAID OF RUNNING OUT OF MONEY IF YOUR CLIENTS “FIRE YOU” FOR RAISING YOUR FEES?
Many entrepreneurs think that if they raise their prices all clients will stop buying from them immediately. They assume they’ll be fired by customers as soon as the announcement is made in the market, and no one else will buy from them.
That’s a wrong line of thinking.
Because your clients ARE NOT doing you a favor by giving you money.
No. They are PAYING you in EXCHANGE of your services or products.
But ok, it’s normal to think they are doing you a favor because after all, it is the customer who pays your bills and the bills of your employees, but let’s not be mistaken and assume they’re doing you a favor because this is a very stupid mindset and I will prove it to you now.
PROBABILITY #1: So let’s suppose you raised your prices. Then, most customers fire you because you “overcharged” for your services or products. Now suppose as well, that most of your ex-customers find another company for the same price they’re paying you. Think. What should be your VISION of this situation?
Your possible answer: That new company TOOK MY MONEY because I was stupid for chargin more.
No. Not at all.
Pay attention here, my friend. The RIGHT way to face this situation is by acknowledging this:
So if a client fires you just because you are giving yourself a raise (and probably a deserved one), then go find another client. Because this is a decision VERY FEW entrepreneurs take, due to the level of influence the whole market puts on pricing.
It is YOU who defines how much you’ll earn and not your customer. It’s you. Remember that. Because if you know you’re a hard worker and if you’re always learning and evolving, then why should you embarrass yourself by disrespecting your OWN efforts by charging less than your level of effort deserves?
Why disrespect your employees by bringing less to the table to feed them when they were hard workers?
Don’t charge what other companies charge just because that’s how the market works. Forget the market. Charge based on your own hard work and level of expertise.
THAT’S how you will grow.
#2 – ARE YOU WORRIED THAT YOU WILL NEVER FIND A GOOD CLIENT LIKE YOURS AGAIN?
We all have faced this fear at least once after we have met one of those “gold customers” who feeds us great and profitable projects, with easy deadlines and huge flexibility, giving our company steady growth and also, a very good balanced life indirectly.
But then you ask yourself:
Relax relax, there’s no need to yell like that with me.
The point here that you need to focus on is the SUBJECTIVE side of this situation. Now think, what’s that side? Can you see it? Yes? No? Then follow me on the line of thinking below for a moment:
- You are being well-paid
- You have easy deadlines
- You deliver the work and you schedule meetings when YOU want
Ok, what does that tells you?
This tells you that…
See? I can yell at you too! >:(
Ok so if you have all of these benefits with those gold customers of yours, this tells you that you are VERY GOOD at what you do and that’s why your company is having all this freedom. But think. If your company is very good, very creative and has presence then isn’t logical that you can find another good customer who will pay your new fees?
Some entrepreneurs think they won’t be any more gold clients out there, who enjoys paying for quality work in order to get rid of any possible headaches. There are a lot of people who would have no problem at all accepting the price you are charging now. Seriously.
So remember this rule:
When they don’t satisfy you anymore, you should leave your comfort zone and find new ones. Because, if it was the other way around and if you couldn’t satisfy your client anymore, he would fire you in a heartbeat. Or am I mistaken here? Of course not. So don’t make wrong assumptions about your client’s loyalty because he is ALWAYS looking at your company as a business transaction, most of the times. It is pretty rare to find a person who will buy from Company “A” if Company “B” can give you much more and he has money to pay them.
Good clients care about relationships, but they care much more about RESULTS.
So if you make them suffer and don’t provide them what they want, then you are fired.
That’s why they pay you well.
That’s why you have all that freedom.
And that’s why you have a more “pressure-free” deadline.
Because of your VALUE.
Which is why you should make it a two-way street and see if HE can make YOU happier as well! Are you following me on this? Because if he can’t, then be honest and sincere about your new pricing (if you like) and if he leaves your company then just go hunt for other special clients aggressively, because there is always high-paying customers available in the market for those who are awesome at what they do.
The same principle of being a good professional still applies to a good company, which is:
“If you are great at what you do, then you can choose your customers”.
So again: Good clients are good when they fully satisfy your company’s needs.
Period. Now let’s continue.
#3 – DO YOU THINK IT’S DISRESPECTFUL TO CHARGE MORE FROM YOUR CURRENT CUSTOMERS?
Look, sometimes it seems like we are all bad and greedy and we care only about money, but that’s not true. You know it’s not true and even the customer knows that, deep down. Because bills keep coming, you and your employees still have dreams to accomplish, life plans and trips we all want to make. So there’s nothing WRONG and disrespectful about charging more money.
But there’s a “modus operandi” to make this subject comfortable.
The easy trick is to always maintain professionalism regarding:
When you leave those 3 things aside, and very clear on the table, showing in crystal clear letters that your company may raise its fees eventually due to a particular reason then the customer won’t feel bad when you give him the “money-talk”.
Why? Because that is part of the professional negotiation.
So in order to get out with this smoothly, just stay professional.
And be happy. Charge more. You deserve it. Your employees deserve it.
#4 – DO YOU THINK THE MARKET DEFINES YOUR PRICING BECAUSE IT HAS A STANDARD PRICE?
The Market? RELAX! The market is just a thermometer so you can know when you are reaching a top-level work, no joke. Seriously. The standard market price is just for you to have an IDEA where your level of skills and expertise is at. Because the truth is that your prices are not ruled by the market, but by your REPUTATION!!!
Think for a moment.
If you were a world-wide known company that has worked for Google, IBM, Coca-cola, Red Bull and several other big companies, would you be charging the same fee — even if it was the highest from the market — for your services or products?!?
OF COURSE NOT!!!
You would be all obnoxious and arrogant, like this:
Geez….you should be more humble with people…
Well, you understand this better now? As you can see, the market doesn’t dictate how much you should charge, you are solely charging based on your reputation and your level of expertise.
Those who base themselves on other people will always be average.
So if you’re good enough and you deliver, then why charge the same amount of money?
If you always have a good relationship with your customers, or if you have a unique set of values, then WHY charge for your products/services like you were just like another company?
Doesn’t make any sense.
It’s like you were rewarding your own efforts with another company’s reward, and assuming they are working as hard as your company. Again, doesn’t make any sense.
#5 – DO YOU THINK YOU DON’T PROVIDE THAT MUCH VALUE TO THE CUSTOMER IN ORDER TO RAISE YOUR PRICES?
First of all, you need to understand what is value for ANY client or you WILL be trapped in this mindset. Forever. And this is the most dangerous limiting belief there is because that can truly DESTROY the progress and growth of your business.
Here’s a Value definition:
- Provide a great solution for the customer
- Deliver much more than expected to the customer
- Improve the customer’s life in a unique way
So all that you have to do is ask yourself these questions:
- Am I giving the customer what he needs and a little more?
- Is the customer’s experience a great one when he comes in contact with my brand?
- Did his life changed after having contact with my work?
WHAT THE CUSTOMER NEEDS = Your service/product delivered + a bonus.
WHAT THE CUSTOMER WANTS = Your service/product delivered as an awesome experience.
WHAT THE CUSTOMER NEVER EXPECTS = Your service/product to be unique and creative.
This is why when companies fill all these 3 “gaps” they are able to IMPRESS the customer and get away with charging more money at the same time. That’s the secret behind this money thing.
So, what you need to remember is this:
How much would you pay for a machine that could automatically invest your money and triplicate your wealth every 3 months? A million dollars? 50 billion dollars? Would you sell everything you own in order to have it?
That’s the point: Value is not the same as price.
Value is the RESULT, the incredible experience and that outcome the client expects that will define if he reached his goal or not in hiring your company.
Price, on the other hand, is just an amount of money necessary to achieve his own goals.
That’s why value transcends pricing.
A FINAL QUESTION FOR YOU
Now that you have read all these logical reasons above, let me ask you something:
Because if you keep thinking SMALL then you’ll never have time to:
- build new relationships and amplify networking
- study to gain more expertise OR try new things
- market yourself more
You MUST make a decision so you can leverage your business to the next level.
Kill all your limiting beliefs. They will only block you from achieving the next status you desire so much for your company.
And also, if you don’t charge more then your customers will view your business as the “average company” forever. Because if people see your business not evolving they won’t place that much faith in your company’s skills and expertise. If a company IS THE SAME for 2, 3, 5 or 10 YEARS, then something is clearly wrong.
But it doesn’t stop there.
Another advantage of taking this risk is that you will ALWAYS get something good out of adversity. If something bad happens when you take a leap of faith, you’ll have to focus on the good side and fight to see that light at the end of the tunnel again. And this will give you personal growth and it will strengthen your mentality, making you less afraid of taking harsh decisions.
Be happy when a client fire you just because you raised your prices.
Because this means he doesn’t value your work that much, and you now have the time to improve your company’s skills, expertise and strategies and prove him wrong.
And with this new knowledge, you can now go get new clients who will pay you what you deserve.
Did you lose that big customer who feeds you very well? GREAT! Then now it’s time to improve your marketing skills, enter WARRIOR MODE and get 3 more similar clients.
That is why, you shouldn’t worry that much when you get adversity as a result of taking action towards the next level of your business because sometimes in life, you’ll have to make a harsh decision that will force your company to grow, or to slowly perish.
A TRUTH: People run from taking action that has the risk of harming them in any way because they want to avoid the work necessary to fix it, and they don’t want to leave that nice, pretty comfort zone.
But it’s EXACTLY the comfort zone that keeps you being paid like you don’t deserve.
Charge more. Because mone is necessary to grow your business.