Learn about price strategy how you can help clients see it your way here
Testing The Waters
Of course, there will come a time when you would need to increase the price of your service. If you have never conducted this exercise before, it might be slightly off putting because you would not know how much is enough in terms of the increase in value of your service. The only way to go through this obstacle is by simple experimentation. You can inform your existing clients of an increase in pricing and look at the number of clients who are still eager to retain your services. Chances are you would have quite a number who are satisfied enough by your service so far to be more than happy to go along with you even with the price increase. There would of course be others who are unable to keep up and then decide not to continue retaining your service. Most people would not want to lose clients and so continue undercharging their clients. If you put things into perspective, however, you will note that by increasing your prices and losing a few clients, you are still a winner because the increase in price would be able to offset any significant losses. Additionally, you now have more time to focus on business operations because you have slightly less clients!
Value, Value, Value
At the end of the day, it all boils down to one thing: value. Once you are able to quantify the value you bring to the service, you would then be able to transfer this value on to your clients. Once you are able to explain the significance of this value to your clients, you would then be able to enjoy the benefit of having clients who are more than happy to pay you for your ability to bring value to them. It really is as easy as that. Of course, there are many things that might still be down to trial-and-error. However, laying the foundation of understanding the value of your service will go a long way towards helping you fine tune your pricing strategy. Just remember that you can’t cut corners when it comes to the value of your service. Clients essentially want to feel that they are getting the best with the money they are paying you. Your job is to ensure that they continually feel that way.