In every coach’s life, there comes a time when you simply have to raise your rates and there are many reasons for that needed pay increase. Maybe you’ve been in business for years without a raise or maybe your skills have recently improved through a new training course or certification. Another reason is that you just might want to attract a higher caliber of a client.
Whatever the reason, it pays to have a plan in place before you make your big announcement. Here’s where to start.
For Those First Time Readers
Let me introduce myself. My name is Corinne and I provide VA and content repurposing services to fitness coaches and mom bloggers. There are a million things on our to-do list as mompreneurs from blogging, to trying to lose 5 pounds and making sure the house doesn’t fall apart. I am always looking for ways to be more efficient and how I can reduce the amount of time it takes to accomplish my tasks. I experiment with new ideas and share them on my blog if they are a success! Today I want to share…
The First Item You Should Look At
First, take a look at your current clients. Will you raise their rates as well? If the answer is no, then you have to consider if keeping them will be worth your time, or if you’ll feel resentful at the amount of (lower paid) time you are spending with them. Resentment can build up, so be wary of this. It’s better to raise their rates than provide substandard services due to hidden anger.
If the answer is yes, then you have to prepare yourself for potential fallout. Simply put, there are some clients (you likely know who they are) who will balk at a price hike. They’ll threaten to leave. They may actually leave. Are you prepared for the hit your wallet will take should that happen?
Create a Timeline for Your Rate Increase
Next, consider when your rate increase will go into effect. This might be different for each client, depending on when/how they’re paying you. A client who is on an annual coaching plan might not see an increase for 8 months or more, while a monthly client might be shocked to find his or her rate is going up in a week.
If you can, give your clients at least 30 days notice of the increase. This way, they can not only budget for a higher expense but also shop around for a new coach if they choose to.
Offer Your Old Rate to New Clients for a Limited Time
Finally, if you’re a little flexible and want to gain a few new clients, you might think about creating a last-minute offer. Announce that your rates are going up on [whatever date], then offer to let X number of new clients lock in your current rate if they sign a contract right now.
Sure, you’ll still be working at your old rate, but with a few new clients on the roster, your cash flow will definitely improve.
The most important thing to remember about rate increases is this: You have to feel good about the prices you charge. If you think your rates are too low, chances are good that they are. Raising them will not only make you feel better, but it might just let your current and prospective clients know the value of your services as well.
None of your clients are going to initially be happy with your rate increase, but if you have been doing amazing work for them, they will see that you are worth the amount that you will be charging. Yes, you may lose a couple of clients with your increased rates, but you will quickly make up the loss of income with the new clients that you bring in at your higher rate.
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