I have a client who I’m going to call Brandon.
Brandon was undercharging for his coaching fees and he knew it was time to raise his rates. We strategized about what the next level of pricing would be for him and formulated a plan to authentically and respectfully raise rates for his current clients.
So, off Brandon went…
Within the week, Brandon attracted two new clients out of the blue. Neither of them blinked at the new, higher rate. They both said yes and were ready to rock + roll. (Hey there, high five from the Universe!)
Then, one of Brandon’s current clients, after hearing the new rates, decided that she didn’t want to continue working with him. Brandon confessed that her commitment level wasn’t strong. Though he enjoyed working with her, he didn’t get the impression that coaching was her priority.
Even with all of that, Brandon panicked. Rather than focusing on the Universe’s high five, all Brandon could think about was the one client who passed on the new rates.
“Was this new rate too high? Is this new fee structure appropriate? Should I barter? I’m never going to be successful as a coach because no one will pay me! In fact, I might have just purchased a one way ticket to bankruptcy.”
I’ll be honest — I’ve been in Brandon’s shoes. I don’t think there is anything that makes me more nervous in my business than raising my rates. I know first hand that it’s easy to make up a fictitious story designed to keep you in your pricing-comfort-zone.
Mine is the one about how everyone is going to go away and no one will afford me so I’ll have to work at Starbucks.
Yet, if you’re not making enough money to sustain the lifestyle you want — go get that Starbucks job. I’ve heard their health insurance is pretty awesome!
Listen, it’s hard to be an entrepreneur. It’s hard to work for yourself and have all that responsibility on your shoulders. So if the financial reward isn’t big enough… what the hell are you doing this for?
So, how do you stop playing mind games with yourself when it comes to your coaching rates?
Focus on facts, not fears.
For Brandon, these are the facts:
1. New clients don’t blink an eye at his new rates.
2. An uncommitted client did not opt in after he raised his rates.
The end. Don’t give meaning to things that don’t actually have meaning. The story Brandon told himself about about why the client left and what that means about the future of his business is all fear.
The truth of the matter is, you have to be willing to test your pricing boundaries to find YOUR pricing sweet spot. This will mean that some will say yes, and others will say no. And don’t be fooled by what no really means. It’s not an indication that your rates are wonky. Instead, it’s a sign that your practice is primed to attract the RIGHT clients.
Charging what you’re worth also makes it possible to create the lifestyle you desire and be at your best because you’re not stressed about paying your mortgage…
So I guess there’s also that.
Do you play the raise your rates mind game with yourself? What has helped you get out of tail-spin mode and into take-off mode? Tell me your thoughts over on the Coaches on a Mission Facebook Group.