So let's talk about price increases...
#Google (G Suite) recently rolled out a $1 increase to their monthly plans. When you think about it, this can potential drive them millions..
They wouldn't be able to do this effectively, if they weren't adding a tremendous amount of value to their customers. Most people will look at it and say, "ehh, it's only a dollar and I need the software." Those that don't value it will probably cancel. But it's worth a million bucks to Google. What are your thoughts?
I mention this because many entrepreneurs and business owners fear increasing their prices. They don't want to lose customers. But if your costs go up (or your value has grown like mine) why shouldn't you be able to present a price increase with #confidence?? I know someone going through this right now and it's SO tough to do - especially when you've built a relationship with someone or a company over time. You kind of feel like you have to earn their business in the beginning, but now it seems like they're taking advantage of you (time, money, resources, expertise, willingness, eagerness, passion, pride..)
You'll never feel important or successful until you control your own destiny. It's not about telling customers "this is how it's going to be moving forward." It's about showing them just how much you're doing for them and how it isn't adding up anymore. There's nothing wrong with being authentic. Ever. As long as it's not aligned with arrogance or greed. Explaining how much you're doing in comparison to the return might actually earn you a few apologies. In one of my experiences, I actually received a complimentary payment because the client just wasn't aware. They assumed because I never took the initiative to inform or educate them. Not everyone knows what you know - you know that right?
At the same time, some might get upset. Some might even fire you. Some might be offended. But, if you never stand up for the progression of your business, you'll remain in a layer of stagnancy forever. Period. Being professional and thoughtful about this "ask" (as Gary Vaynerchuk calls it) will benefit your business tremendously. Customers will understand the value now - it might even be something they never appreciated before.
Even if they go somewhere else, they'll soon realize your worth. They might even come back with their tail between their legs and say, "man, I'm sorry, I didn't realize..." The best part? You'll begin to see and believe in your worth too! Seeing that 2/4 people are willing to pay you double not only boosts your revenue to time ratio, but it gives you the confidence to continue growing your business and believing in the vision you set out to chase from the get go.
Allowing others to dictate your value can be super discouraging. It can cause you to be non-productive or even un-enthusiastic about the outlook of your biz. Forcing others to see your worth allows you to embody ambition on a daily basis and overcome the business elements that have held you back up until this point.
Make the decision to do what's best for your business and customers, like Google. Be sympathetic - but realistic - with the ask. In other words, always make sure you're actually able to back up your reasoning with quality and value. Google did this very well in their G Suite pricing announcement.
Moral of the story: don't increase your prices if there is no pudding with proof in it! Your reputation will become nothing more than a selfish nincompoop that's only interested in the sale. Like most things I'm against, you'll never be able to sustain and scale this way.
Be #purposeful with everything you do and always remember to #PreFocus.