Raising prices as an entrepreneur: these are the important do's!

When was the last time you had your prices up done? Let me guess: you did it at the turn of the year because you felt you had to pick a logical time to raise your prices. Or maybe you didn't do it at all because you have the conviction that you don't have a higher rate can ask within your industry.

Nevertheless, raising your prices regularly is very important. Not only for your sales and profits, but also because it takes your business to the next level. In this blog I will tell you why it is good to raise your prices and which steps you need to take to do so. 

Are you having trouble not only raising your prices, but also setting your price? I previously wrote about price psychology and calculating the right sales price.

What is my added value?

The most important reason to throw your prices up or not has nothing to do with your competition or timing. It does have to do with added value. Or in other words, are you doing what you are darn good at and what energizes you? Can you answer 'yes' to this? Then you know there is a good chance you are making an impact. And if you make impact, you can ask for money.

In other words, you are valued by your customers and they pay you a valued price for your added value. The more paying customers, the higher your values and therefore your price. That's where we come to the supply and demand piece. 

I still see too many entrepreneurs who do not raise their prices (regularly). And in doing so, they miss out on sales and profits. I find that worthless. I am a big proponent of value-driven - also called value-based pricing - because: 

• If you raise your prices without adding any value, you will actually lose appreciation over time. 
• When you increase value driven your prices, you will become more valued over time and that makes you opMARKably Profitable.

With your value, you know how to stand out in the market and profit in revenue, as well as time, energy and impact.

Two reasons why it's good to raise your price

Do you want to raise your prices? You have to get rid of the feeling that you are a thief of other people's wallets. After all, your higher prices also give customers something, namely; 

You attract motivated customers

As an entrepreneur, do you ever give something away for free? You will find that the interest around this product or offer is less than your paid offer. Often my clients see that the turnout for a free master class, for example, is much lower than when there is a fee in return. It feels less valuable to a client and therefore they are less committed to getting started. Of course, your master offer is not free, but a low price has the same psychological effect.

On the other hand, it actually motivates clients to work hard when they have made a big investment. As a result, you usually achieve the best results together. You are not a quick fix. You are there for the people who are intrinsically motivated to develop. 

So it is important to change your mindset: high prices are not something you ask for yourself, but to challenge the customer more to get the most out of themselves. 

Your offer will improve

Higher prices challenge yourself to think even more carefully about your offer. How do you make sure your customers get value for money?  

Raising prices? Here's how to do it!

Is it time to raise your prices? Time to get started! The steps below will ensure that you raise your prices with confidence AND that your customers pay it with love. 

Step 1: set an income goal

Many entrepreneurs do their job, send an invoice at the end of the month or the stretch, and after a year look at what they've earned. The result? A lack of overview, you have no ability to make adjustments and you won't make big growth strides. My advice is to turn it around. Start with the question: what do I want to earn? Your income goal is central to everything you do. 

By not waiting to see what you will earn, but by determining it, you take control of your income. When you know what you want to earn, you can also clearly calculate back what you should charge. 

Do you want to earn €10,000 a month and your trajectory costs €2500? Then you know you need to find four paid clients every month. That knowledge makes you much more focused. You adjust your sales strategy and time accordingly.

Step 2: learn how to sell

Customers are not interested in "how" you do it, but what it delivers. So you have to appeal to customers for what they want. Often they want their investment to yield time, money or a healthier lifestyle. Therefore, sell the result, not the tool with which you do it. 

Step 3: Feel confident about your prices

As a business strategist, I applaud making money, but of course you have to be value-driven and you have to be able to bear the price. For that, you have to be fully behind the price. After all, a customer feels when you express the price uncertainly. With a good price, you feel comfortable saying it out loud and, on the other hand, you feel like getting started. A customer senses how you feel about a price. A positive attitude draws him or her over the line faster.

Also keep an eye on developments in the market. Read more about Entrepreneurship in times of crisis: 5 smart financial steps to take.