Raise Your Fees With Confidence and Ease

Do you ever say to yourself, “I know I should raise my fees, but…?” It can feel like a struggle trying to figure out how to raise your fees and feel good about it at the same time.  And no wonder.

Many of my clients feel like raising fees are complicated, while others fear losing clients or appearing greedy.  But I want to share a different perspective around fees and raising them.  Plus, I share one way to raise your fees that I’ve found feels pretty easy and gives me a boost of confidence each time I practice it.

When I started out my fees were pretty cheap yet I struggled with raising them because I thought I’d lose clients. However, I quickly realized I was sabotaging myself and became clear that if I wanted to make more, I had to change the way I thought about the value I provided and the fees I charged, which resulted in three major breakthroughs.

Breakthrough #1

Learn to release your limiting beliefs around your fees and money.  One of the most prominent limiting beliefs is to doubt your fees.  If you doubt your price, you’re most likely focused on the features instead of the value of the results your clients get from working with you.  If this resonates with you try shifting your focus to the value of the results your service delivers and you will start feeling more confident about what you charge.

Breakthrough #2

If you fear that you’ll lose clients when you raise your rates, rest assured you’re not alone as this is a very common fear.   The truth is you may lose a few clients when you raise your fees but it rarely has to do with your higher fees. In fact, I found that losing a few clients was a good thing because it was a catalyst for these clients to make changes in other areas of their life – how awesome is that?  Finally, I realized that to reach my next level, I had to let go of some clients who were no longer a good fit.

Breakthrough #3

How do you know if you’re charging enough? One way to know is if you haven’t raised your rates in at least the last 6-12 months.  Another way to is to check in with yourself because there’s that part of you that just knows when things are off. When you check in with yourself and you feel like your fees are too low, you’re probably not charging nearly enough.

One final way to know if it’s time to raise your rates is if you’re hearing yes from 90%-100% of your perspective clients, then your rates are too low.   This is a cue to adjust your rates so you’re hearing yes from 70%-80% of your perspective clients.

Simple Rate Setting Exercise

Here’s a simple exercise to help determine your new rates so you can start bringing in more money immediately.   For this exercise, I’m going to use an hourly rate.

Let’s say your hourly rate is $100/hour but you haven’t raised your fees in a while and you’re definitely feeling like it’s time.

Follow these 3 simple steps:

  • Choose a rate that makes you gasp – let’s say $250/hr.
  • Choose a comfortable rate somewhere between your current rate of $100/hr. and $250/hr. – let’s say $125/hr.
  • Add at least 20% to the comfortable rate – $125 + 20% = $150

Is that simple or what?  My clients love this exercise so much they feel like they’ve been given permission to finally make more money. Once in a while, when a client feels really uncomfortable and only wants to add 10% to their “comfortable fee”, we celebrate it all the same and I encourage them to use the exercise frequently.   The bottom line is this, you have to feel confident and in alignment about raising your fees while you’re reaching beyond your comfort zone.  The great thing is that learning to raise your rates is a skill that can be improved upon over time with practice.

BONUS TIP: Raising fees is just one way to make more money.  Without a doubt, it’s very important because so many people undercharge for their service.  However, when you look more broadly at your business you can see there are many opportunities and creative ways to make more money without working harder.

 

Mary Billerbeck is a business and money coach who leads female entrepreneurs in transforming their relationship with money and mastering their mindset so that they can charge what they are worth, create amazing success in their businesses and live the life of their dreams.

She can be reached at: mary@financiallyfitliving.com or www.financiallyfitliving.com.