Have you ever wondered if you could raise your prices without alienating all your clients?
Come peek behind the scenes of an actual client coaching call, where we tackle this exact challenge. (Names and details have been changed for privacy).
My client asks me a common question among consultants: “How do I start to work with higher-ticket clients?”
She was concerned that potential clients wouldn’t pay a higher rate.
But while working with me over the past year, she has already more than doubled her prevailing rate, and nobody has batted an eye – until Tuesday.
This is a key psychological insight for pricing – when you shift from perceived resistance (you think people won’t pay) to actual resistance (a potential client balks at the price).
My client’s new prevailing rate is $500 per hour, and she recently quoted $2000 for a three-hour project.
The client hesitates.
“But this client used to pay me a premium rate,” she protests.
“Congratulations!” I tell her. “You’re starting to discover the limits of your pricing.”
Here’s the key: simply raising prices isn’t enough. You must also add value – craft a compelling name for your service, refine the description to be more results focused, and include irresistible deliverables.
And then, you need to test it to see if clients will sign up.
If no one ever turns you down for price, your prices are too low.
When the client offers to pay $1500 for the three hours, my client hesitates.
“But that’s your prevailing rate,” I remind her. “They are willing to pay your prevailing rate, but not more.”
This is a pivotal moment in your consulting practice: when you start negotiating above your base rate. Offering a discount down to your prevailing rate becomes a strategic move rather than a compromise.
And how can she move her prevailing rate above $500?
The same way she more than doubled it to $500 in the first place:
- First, we create a compelling name for her service.
- Then we enhance the description to add more value and be more results focused.
- Finally we test the changes on her new clients.
She signs up many clients at the new rate. The resistance from one client at an even higher rate simply indicates that more value needs to be added.
Over time, we’ll develop a new name and add additional elements that make the service even more valuable.
Are you ready to increase your prevailing rate? It might be time to name your service, strengthen your pitch, and make your service description more results focused.
Remember – business growth happens outside your comfort zone.
If you’re ready to take that step, book time in my schedule.