Sometimes, you change. I’ve spoken with a few agency owners and consultants who have realized that they either have or need to go upstream in their business to a) be more profitable and b) be happier. I’ve seen this happen many times.
So how do you move upstream and change your prices, and what does that mean for your current clients who are paying you less than your new rates? This video covers that second part – communicating pricing changes to your clients.
I did this a few years ago and I think did it well. It’s hard, but always worth it. When I boil down my advice in this video, it is:
- Have the conversation in person in possible, and over the phone if you can’t do it in person.
- Have the conversation as soon as possible, and never lie.
- If they’re not able to afford your new rates, then offer to help them find a new agency.
If you’re changing your prices and increasing them, you have to be ready to lose some of your clients. But, you should factor this in to your financial model and know how many clients you’ll need to get new to make up for this lost revenue. In an ideal world, you’ll make enough from each of the ones who choose to stay to not take a financial hit even if some leave.
Here’s my advice:
As always, I’d love to hear your thoughts.
Leave them in the comments!