Do you suffer from the Price Rise Trap?
Worried about being seen as greedy?
Scared that you’ll lose customers if you charge more?
Think it’s just to hard, I won’t bother?
In this episode of Live With The Pricing Lady, we tackle the common price trap myths and fears that hold businesses back from increasing their prices. Join me as we break down misconceptions around pricing, from the idea that raising prices is too complicated to the fear that you’ll drive customers away. With over 20 years of experience, I’ll share proven strategies to help you overcome these challenges and gain the confidence to charge for the value you deliver – no more will you suffer from the price rise trap.
You’ll discover how to shift your mindset, focus on the value you provide, and communicate price increases effectively without losing your client base. I’ll also introduce my Price Check Guide, a practical tool designed to help you assess when it’s time to raise your prices and how to do it strategically, so you’re not leaving money on the table.
Whether you’re a business owner struggling with pricing anxiety or simply curious about how to optimize your pricing for growth, this episode is packed with actionable advice to help you take the next step. Plus, stay tuned for more details on my upcoming Raising Prices program, where we’ll dive even deeper into mastering the art of pricing with confidence.
Tune in, and start your journey towards profitable pricing today!
What to Listen out for:
- 00:42 Episode Overview: The Price Rise Trap
- 02:02 Myth 1: Raising Prices Makes You Greedy
- 04:47 Myth 2: Customers Will Leave If Prices Increase
- 07:47 Myth 3: Raising Prices Is Too Difficult
- 09:05 Steps to Confidently Raise Your Prices
- 16:43 Conclusion and Resources
Favorite quotes from this episode
“Money is important when running a business. Raising prices doesn’t mean you are greedy. Take that to heart!” Janene
“If you go about increasing your prices in the right way, if you believe in it, if you understand why you’re doing it and have concrete justifications in your own mind as to why it’s needed and necessary, or why it’s the right thing to do. Then you’re going to feel more confident and be able to communicate it more effectively. ” Janene
“It can be more difficult (raising prices) if you’re not positioned properly to begin with. Or if you wait too long to make the necessary changes. It can be more difficult. But it does not make it impossible.” Janene
“You can have the right price changes, but if you communicate them poorly, It will not be successful.” Janene
Episode Links
Grab your copy of the Price Check Guide. The first step to avoiding the price rise trap is understanding the signs it’s time.
https://thepricinglady.com/price-check-guide/
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Get started improving your business. Beyond this pricing podcast there’s more for you to explore. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard to get a view of what’s working and not in your business. Also if you’ve ever wondered “What’s a fair price?” then check out my on-demand webinar “Getting to A Fair Price“. Two great places to get started with pricing in your business today.
Get in touch with Janene, your Business Strategist & Pricing Expert. If you’ve got a business question that needs answering, a pricing challenge you’re facing or you have suggestions for future topics or guests, let me know. Your questions and insights often become episodes. Share yours with me and let’s see where it goes. Contact Janene.
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Episode Summary
In this episode of “Live With The Pricing Lady,” we’ll confront the price rise trap myths that prevent you from raising your prices. These myths plague small business owners, coaches, consultants, solo entrepreneurs, and freelancers, keeping you stuck under an unproductibve “boulder” of fear and hesitation. Here are the three myths that keep you stuck.
Myth #1: People Will Think I’m Greedy
One of the most detrimental of the myths is the fear that raising your prices will make people think you are greedy. It is an especially destructive mindset that is common among women, who often worry about being perceived as money-hungry. However, it’s crucial to separate yourself from these unfounded fears. Raising your prices does not make you greedy; it makes you a smart and savvy business owner. Over time, you will need to increase your prices to maintain profitability, manage rising costs, and reflect the additional value you bring. Ignoring this reality can hurt your business’s sustainability and growth – hence you fall into the price rise trap.
Myth #2: All My Customers Will Flee
The second myth is the fear that all your customers will run away if you raise your prices. This fear evokes images of mass chaos, but the reality is far less dramatic. Unless you are planning to double or triple your prices when you’re already well positioned, a moderate increase, such as 10-30%, is unlikely to cause a significant exodus. Even if some customers leave, this can be beneficial. Price increases can help you weed out difficult or low-value clients. By communicating your price changes effectively and justifying them with clear reasons, you can retain valuable customers and possibly attract even better ones – avoiding the price rise trap.
Myth #3: It’s Too Hard to Raise Prices
The third myth is the belief that raising prices is too difficult, so it’s not worth the effort. While it can be challenging, especially if you haven’t positioned yourself well initially, it is by no means impossible. The key is to approach the process strategically and confidently. Let go of the excuses and do what’s necessary to ensure your business’s success. Communicate clearly with customers so that you can maintain solid relationships and continue to build trust.
Now that you know how to side step the price rise trap, here are three crucial steps you can take to feel more confident raising prices:
Step 1: Do the Research
The first step to avoiding the trap is to understand the signs that indicate it’s time to raise your prices. Analyze your costs, market conditions, competition, etc…. For example, if you’re a hairdresser and notice increases in rent, utilities, and product costs, it’s a clear sign that you need to adjust your pricing. As a service based business you may notice that you’re working much harder than needed and juggling too many clients. This can also be a sign.
Step 2: Do the Math
Calculate how the price increase will impact your profitability. Consider potential changes in volume and customer retention. Ensure that your new prices cover increased costs and improve your margins. This step is essential to making informed, financially sound decisions
Step 3: Communicate Effectively
Your pricing changes need to be communicated well to your customers. Tailor your message based on your business model. If you have repeat customers, a formal announcement might be necessary. Highlight the value you’re providing rather than focusing solely on cost increases.
Conclusion
To wrap up, debunking these price trap myths is crucial for making informed decisions that can significantly impact your business’s profitability and sustainability. Don’t let unfounded fears hold you back from making necessary price adjustments. Recognizing and overcoming these misconceptions will empower you to embrace the changes that drive your business forward.
For more guidance, you can grab a copy of my “Price Check Guide” at ThePricingLady.com. This guide will help you identify signs that it’s time to adjust your prices and provide actionable steps to do so confidently.
Thank you for tuning in to Live With The Pricing Lady. If you found this blog post insightful, feel free to share it with your network. Stay tuned for more pricing insights and remember, pricing is not just a number—it’s a reflection of your business’s journey. Enjoy pricing!