It’s time to raise your rates for 2012! I know lots of people cringe at doing this, but honestly it’s much easier than you think. So here’s what you do…
First, send out 30 or 60 day notices to all your clients giving them a heads-up that fees will be increasing. I would wait until January to do this rather than right now in the middle of the holidays. (And ideally for next year, plan on doing this in October/November instead of January.)
Not sure how to word your notice? Simple is always best. Here is a sample script you can use:
This letter is to let you know that the fee for your support plan will increase to $[NEW FEE AMOUNT] per month effective [DATE].
It is such a pleasure working with you, and I really love watching you grow and move forward in your business through our work together. [HERE, INCLUDE TWO OR THREE MAJOR ACCOMPLISHMENTS AND GOALS YOU’VE HELPED THE CLIENT ACHIEVE. USE FACTS AND FIGURES, ESPECIALLY DOLLAR AND PERCENTAGE INCREASES, AS MUCH AS POSSIBLE].
I look forward to continuing our wonderful relationship and helping you achieve your goals and dreams!
You notice that in the second paragraph, you should bring up a few of the significant accomplishments and goals you’ve helped that particular client achieve through your work together. You should include facts and figures whenever possible.
If you aren’t yet, start trying to track and identify dollar and percent increases that your work and support is directly or indirectly responsible for (e.g., how many more clients have they been able to work with? How many hours of time were you able to put back in their pocket? How much more money have they made since working with you? How much have their profit percentages increased since then?).
These things serve as a reminder of your value (in terms of how it relates to them and their business) and why they continue to work with you. This is the WIIFM (“what’s in it for me?”) factor.
Just remember, you don’t need to offer excuses or drawn out explanations. You’re not asking for their permission because you’re not an employee and it’s not up to them. It’s YOUR business and you don’t answer to clients when it comes to those decisions. You being profitable and making sure you are stable, secure and growing financially actually helps clients because if you aren’t doing well, you will not be able to help clients as well as you could be.
If you have any other questions around the topic of raising fees, please do post in the comments and I’ll try to help. 🙂
If you REALLY want to learn how to earn better in your business for 2012, in ways that are WAY more client friendly and attractive, get my pricing and packaging guide: “How to Price and Package Your Support Based on Value and Expertise–NOT Selling Hours!” Click here to check it out!