You're not charging enough for your services

Most people are scared to charge higher prices for their services.

They get too scared and don’t want to scare away their current clients or they think no new clients will take them up on their new prices.

I’m here to make things very clear to you.

Whatever you’re charging right now for your product or service, it’s not enough.

You should double your price right now.

Yeah that’s right.

Double your prices, you could triple them if you want to.

Truth is, if you’re that good at what you do, you should be increasing your prices on a regular basis.

Especially with the way inflation is now, if you’re not charging more, you’re losing money every year.

Most new business owners like to charge less than the market and competitor average in order to attract clients.

While that may work in the very beginning, it’s a pretty terrible long term strategy if you have any desire to scale.

At some point, someone will undercut your prices, and then you’ll undercut them, and all of a sudden it’s a race to the bottom to see who can charge the least.

And now none of you are making any money.

Unless you’re Walmart or Southwest Airlines where you purposely price yourself lower than everyone else and operate at a loss for years, you should be charging more.

Once you’ve shown competence and a very clear ROI on your service for a couple customers, you should increase your prices, and continue to do so as you get better.

When I started out my media agency, I was planning to charge $300 to film a video for a luxury hotel as they were my first client.

I was on a call with them going over what they were going to get with that price and what kind of value the video would provide for them.

My mom was listening in to it and when I finished the call she said something crazy to me at the time.

“You’re charging too low of a price for what you’re giving them, if I were you, I’d charge $1,000”.

I was really hesitant, that was more than triple the original price and I didn’t want to scare away my first client.

But after some convincing, I decided to send over the contract/invoice for $1,000 for the video I was going to make them.

A couple hours later, I got a notification on my phone that they paid the $1,000 in full.

I couldn’t believe it, all my limiting beliefs about what I was worth and what I could charge were shattered.

From that point on I started charging more for my services when my customers were seeing better and better results.

All of a sudden I was increasing my prices by $1,000 every month for the rest of the year.

Don’t be scared to charge people what you’re worth, if your prospects aren’t in shock when you tell them the price, you’re not charging enough.

I’ll also be the first person to tell you that higher ticket customers are much easier to deal with than low ticket customers.

Much less headaches, less problems, and more money.

That’s not to say you’ll never have problems with higher paying customers, but most of the time they’re just easier to please.

I also want to leave you with this:

There is no advantage to being the second cheapest option in the marketplace, but there is an advantage to being the most expensive.