NOTE: We are released a new module at FITposiumPLUS.com all about how to increase your revenue as a fitness entrepreneur. This multi-part video course is available exclusively to members of FITposiumPLUS.com
If you are like many entrepreneurs, the title alone of “raising rates” can send you into a panic spiral.
You immediately come up with a whole host of reasons why you cannot charge more for what you offer.
- The economy is not right
- No one in my area would pay more
- My competition is keeping my rates down
First, start by taking a deep breath and allow me to explain how you can actually increase your rates and how it will help you open up more time while earning more revenue.
Now, let’s explore where your revenue generates from.
If all of your revenue comes from working with someone in person then you are a freelancer who trades your time for money. There is no shame in that but if that is your business model you only have two options when it comes to making more money.
OPTION 1: GET MORE CLIENTS
This option obviously makes complete intuitive sense. The more clients you have the more money you will make. However, you will quickly run out of time and hit that ceiling where you are maxed out on the clients you can take on, but still have not yet hit your financial goals.
OPTION 2: GET BETTER CLIENTS
What does better clients mean? It means clients who will pay you more! Let’s look at some specific examples.
If you have 20 clients at $50/hour then your take home is $1000
HOWEVER, if you raised your rates by only $10, and let us say you lost 3 clients because they no longer wanted to pay you, you would be left with 17 clients at $60/hour – and you would b making $1020. Read that again, you lose 3 clients but you make more money and you opened up 3 hours in your schedule.
Let’s take it on step further. You raised your rates by $20 instead of $10 putting your new hourly rate at $70/hour. Assume you lost 5 clients, which is 25% of your total client base. You would then have 15 clients at $70/hour and you would be making $1050. You now are still making more money and have opened up 25% of your availability!
Before you revert back to all the stories you tell yourself about how the market is oversaturated, competition is undercharging, the economy is rough or your client’s not having the disposable income to invest in you – let’s address a few key and important facts.
- You are NOT selling your time, your knowledge, your expertise, your reputation, your education or your credentials. You ARE SELLING the RESULTS you deliver. That is all clients actually care about. This means that the value of the outcome you deliver is PRICELESS. You are changing people’s lives for the better with your product or your service. So why should you not charge more? A premium!
- Here is another fact about consumer behavior that is IMPORTANT: Buying the best (a premium) feels really good! It makes the consumer proud that they invested in the best. When you buy the best of something you have a heightened sense of pride and accomplishment. When I hire the best business coach, I feel better about myself. When I invest in the best camera gear, I wear it like a badge of honor. Look at what I got or look at what I am doing!
- Charging a premium price demands a premium investment from your clients. When I charge $2000 for a photo shoot – those clients show up better, more prepared, more engaged and more willing to be active and work than when I charge $500. Your clients will respond the same way. Think about how you personally show up when something is free versus $100 versus $1000 versus $10000 or more. So ask yourself: HOW DO I WANT MY CLIENTS TO SHOW UP? Do I want to work with $40/hour clients or do I want to work with $125/hour clients? It is up to you.
- It is FAR EASIER to hit your income goals in $1000 chunks versus $100 bits. Less clients mean less sales which means you have more time available.
CASE STUDY: Client in my mastermind who I challenged to double her rates. She had all the objections above but tried it anyway. She made her matched her entire 2018 income in only 3 months.
My hope is that this article has helped illustrate why you should be increasing your rates for the amazing services that you offer to the world.
As always, we love it when you share this article online or with a friend!
James Patrick
JamesPatrick.com
IG @jpatrickphoto
