How to (Justifiably) Raise Your Prices Without Guilt or Losing Customers, Using This "Killer" Collaborative Close
Do you feel like you’re getting paid what you’re worth?
That’s a tough question to answer yourself (trust me: I've been there), but when you lay your head down at night, don’t you think you’re worth just a little bit more?
And if you struggle with the idea of being paid what you're worth - you're not alone.
According to a study conducted by Glass Door revealed that a total of 39% of all [workers] don't feel they're paid what they're worth...and that was as of 2014! PayScale's 2015 Compensation Best Practices Reports goes one step further and confirms that the two primary reasons someone quits their job or work, is due to personal reasons and to seek higher pay.
For employees working under the direction of someone else, it can be frustrating to have to wait and convince your superior on why the value you bring to the table is worth upping your pay. But for those of us who run our own business or sell our own service, we get to make that decision for ourselves whenever we'd like.
So, why don't we? Most likely because we either feel guilty for the increase or, we're afraid that by charging what our service/time is worth, that you'll lose your customers.
Today, let's tackle the conversation about:
- how to raise your prices (essentially, without losing customers) so you can get paid what you're time & resources are worth
- how you can overcome this common obstacle in your business in order to feel more satisfied, produce higher quality results...
- and - best part - not feel bad about it!
The Struggle is Real: Navigating Your Way From What You "Should Be Paid" to What "You're Worth Being Paid"
These are conversations with my clients all the time about how they can and should increase prices as long as the value delivered increases as well. Typically, when I first share the idea of raising prices most of them are really hesitant to do so.
It’s scary for them to think about:
- What about my existing customers, what will they do?
- How will I sell an even more expensive product/service when I can barely sell this one?
- I have to reconstruct my offers and packages which takes to much time!
…and these are just a few of the excuses I hear upfront, but then we we move forward with it [and] they end up thanking us that we didn’t let them have their way.
WHY IS THIS IMPORTANT?
Because, in order to raise prices you'll have to be able to justify your new pricing and overcome any objections with new and existing customers. You have to be able to show the added value and show that it’s worth the “bump.”
This is the area I believe entrepreneurs need to work on most:
HOW TO MAKE THE OFFER, INSTEAD OF FOCUSING ON THE SALE.
I’m going to break down a process we adopted from good ol’ Kern College - “not a real college” - that’s helped us easily sell $4,000, $6,000 & $15,000 packages without any pressure tactics, pushy motives OR devaluing the time for our services.
Here they are. The...
7 Steps to Collaboratively Closing Your Way To More Premium-Value Customers or Clients (Without The Guilt)
Step 1: Offer to help for free
When you offer to help for free a few things happen.
First, you establish trust.
Second, you stand apart from the crowd (considering you actually demonstrate you can help them).
Third, it sets you up for the close. For example: at the end of your conversation with a prospective client, you would end it with simply...
Step 2: Explain the benefits of your help
You don’t do this in a braggy, ”I’m so cool, look at me” attitude, because that’ll get your deal blown faster than you can blink!
You must be sincere and genuine.
Step 3: Explain why you’re doing this
People are naturally skeptical. So, when you offer something for free…most people want to know why.
Rightly so, we want to scratch that itch and not let them answer it for themselves. We want to bring that to surface and address it like a champ.
Step 4: Eliminate Sales Fear
This is a great way to keep them engaged. By now, they’ve heard all types of pitches from under the sun - and from everyone - and they simply want to know: why they should go with you?
Think of some amazing guarantees, bonuses or perks to help get entice prospective clients off the fence.
Be sure that whatever perks or specialties you offer your clients, that they accentuate the value of your core offer & not devalue it. (That means no random gift cards to Best Buy, an iPad Pro, or $500 in cash.)
Of course, this can only be done if you truly are good at what you do.
Step 5: Irresistible & Intriguing Offer
When you can make you offer irresistible, you have everything you need to create a message that compels people to take action.
Irresistible is exactly how Apple stays ahead of Samsung or other smartphones, because it's practically cornered the market on every offer being completely irresistible. You don't see people waiting in line for two days for the release of the new LG - all I'm sayin'.
Think about what value can you add, or what other problems can you solve; answering questions like those will help you create an I.I.O. (irresistible and intrigue offer).
Step 6. Takeaway Non-Selling (the first step to qualifying)
This is where you do a light takeaway method. We're literally taking away the opportunity for your prospective client to receive your help, which makes them want it even more.
You're also beginning the qualification process of your sales by stating very clearly who your service is and is not for.
Without this process you’ll be giving away money.
The goal is to only sit with people who we know we can help, and who want to be helped. People with the right business model, the right mindset, the right resources.
Step 7: Qualify
Qualifying clients ultimately saves you time and earns you more.
We’ve been qualifying for over a year, but before implementing client-qualification we definitely were not getting the results we wanted. Qualifying clients has allowed us to:
- save time, because we're only speaking with people who are positioned for our help
- justifies our market value, because those who would benefit from our service actually do
- and it ultimately earns our business more money.
A perfect example of Step 7 would look/sound like this:
This step has allowed us to work with more of our "perfect" clients - those we know we can help and appreciate us doing so - and all but eradicated the resources and time wasted attempting to justify our value to those who aren't even in the ballpark of getting value from our service.
Wrapping It Up: What This Process Gives You
...is a targeted group of highly responsive prospects who know what you have to offer, know how much you charge, and literally asking you to help them, NOW.
They would not ask for your help if they were not interested in becoming a client.
Plus, they are essentially APPLYING to talk to you by answering your questions.
There you have it. Start to implement the "killer" collaborative close and see how it works for you. I'd love to hear the results you've gotten.
Also, if you'd like to set up a one-on-one and to learn you how to increase lead flow and make more sales, for free, then qualify here.
Northwicks Consulting, LLC