Getting Comfortable with Raising Your Rates
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Chapter 1: The Importance of Pricing
One of the key aspects of growing your freelance business is learning to charge more for your services. The financial reward isn't the only benefit; it's about enhancing the value you bring to clients.
The marketing course I'm currently enrolled in, along with various books on the subject, consistently emphasizes a crucial lesson: "Charge more, not less!" Despite my inclination to offer my services for free, I'm gradually adapting to this mindset.
Observations on Pricing
Efficiency in Work
When you set higher rates, you typically need to do less work to meet your financial goals. For instance, if a client pays you for one day’s work at a rate equivalent to what another client would pay for five days, you’ll find yourself less overwhelmed and likely performing at a higher standard during that one day.
Perceived Value
Clients often associate price with value. For example, they might assert that they enjoy a pricier bottle of wine more than a cheaper alternative, even if both wines are identical aside from their price tags.
The Key to Success
A less frequently discussed yet crucial insight is: "Anyone can increase their prices, but only a select few can charge these rates and have clients agree to them." — Alex Hormozi.
What steps can you take to ensure clients are willing to say yes to your higher rates?
When you ask for more, it compels you to reflect: "What can I do to become so proficient that clients are eager to pay me this amount?"
Think about it: when you're doing “work for free,” it often feels like a casual hobby. For instance, if you enjoy inline skating at a park on a Saturday afternoon, your focus is on having fun. However, if someone offers you EUR 10,000 for a 30-minute inline skating performance, you'd likely ponder: "How can I make this experience worth that investment for them?"
(Feel free to replace “inline skating” with a hobby that resonates more with you.)
By raising your rates, you’ll be pushed to significantly enhance your offerings, which is beneficial even if monetary gain isn't your primary concern.
Recap
Charging more may initially feel daunting, but it will:
- Enable you to work less while still covering your costs.
- Elevate the perceived value of your services to clients.
- Encourage you to better understand client needs and refine your offerings.
The next time someone asks, "How much?" consider stepping up your pricing.
