Why it’s a Good Thing to Price Yourself Out of Your Old Client’s Budget
You want to be known as a great service provider who delivers excellent work and customer service. What you don’t want to be known for, as a service provider, is being affordable. I first realized this when I was severely undercharging for my services. Although I was getting referrals left and right, I was getting them because I was affordable. Worst of all, these low-ticket clients often demanded the most time.
In today’s episode, I’m addressing a very common and important issue many newer CEOs have: raising your rates and why it’s a good thing to price yourself out of your old client’s budget. I discuss why you’ll attract a higher caliber of clients when you increase your rates, getting over the fear of losing low-ticket clients, and why you need to focus on offers that make the biggest impact.
Here’s a closer look at the episode:
- What happened when I underpriced my services
- Why being budget-friendly will lead to more headaches and resentment
- How to structure for profitability
- Lessons I learned when I priced myself out of my old client’s budget
- Stepping into your role of CEO
“Stop worrying about how much people can afford or assuming what people can afford. Start remembering the fact that you also need to be able to afford to live in your home. You have to eat. You have to run your business. Because you will no longer be able to impact anyone if you can’t stay afloat. ”
– Latesha Lynch
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