In Episode 88 of "What the Biz?!," hosts Brigitte Vegter and Daniel Proczko tackle a topic that every business owner faces: how to raise prices. Using a listener's question about being new and underpricing, they provide a strategic roadmap for approaching this conversation with confidence. This episode covers essential mindset shifts, proactive strategies for future price increases, and practical communication tips—including how to handle a difficult situation where rates need to be raised for a second time.
Listeners will discover:
- Why raising prices is a necessary act of business health and a sign of growth, not a reason for guilt or embarrassment.
- Proactive strategies for scheduling regular, smaller price increases to make them more manageable for you and your clients.
- The importance of giving long notice—up to 6 months—to soften the blow of a price increase.
- Key categories of value to communicate, such as investing in team training or upgrading products, to justify the increase.
- Specific tactics for handling client pushback, including responses for clients who threaten to leave or say, "You just raised your prices".
Show Notes
In this episode, Daniel and Brigitte provide a strategic roadmap for handling one of the most nerve-wracking parts of being a business owner: raising prices.
Key Takeaways:
- Mindset is Everything: Let go of the guilt and embarrassment. Raising prices is a sign of a healthy, growing business and an act of self-preservation. It's unprofessional not to charge what you're worth.
- Proactive Strategies: The best way to approach this is to be proactive. Schedule regular, small price increases (1-4%) and give as much notice as possible (3-6 months is ideal).
- How to Communicate Value: Frame the increase as an investment in your business to provide consistent quality. Communicate improvements such as:
- Investing in Our Team (training, competitive wages).
- Upgraded Products & Equipment (eco-friendly products, new technology).
- Improved Quality Control & Systems.
- Handling Pushback: Be empathetic but firm. Have phrases ready for clients who say, "You just raised your prices" or threaten to leave. Maintain your value and don't devalue your service.
Host Projects & Insights:
- Brigitte's Business: Created a list of the "9 most costly QuickBooks mistakes" and is gearing up to provide resources to help clients with a new, less intuitive QuickBooks interface.
- Daniel's Business: Has seen clients grow as much as 30% in five months and 80% this year. Created an AI agent for the cleaning industry and has released on a pricing guide to help service businesses price more profitably.
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Hosts
Daniel Proczko - myPocketMarketing
Brigitte Vegter - Vegter Financial
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