A common challenge for almost all firm owners is figuring out how to raise prices for existing clients who are underpaying.
In this episode, I dive into why this is such a difficult issue and share recommendations to help you navigate it effectively.
Listen below.
0:33 The challenge of raising rates for underpaying clients arises when we increase prices without offering any additional services.
0:58 When firms raise prices, a common issue is that many realize they’re undercharging certain clients and plan an increase they think will be palatable, but this can lead to challenges later.
1:39 The biggest problem I see is that firms aren’t framing the price increase properly.
2:09 Clients are paying for a result or a deliverable. They don’t care if your profits are squeezed or whether a tax return takes you 5 hours or 10.
3:10 You should frame the price increase as follows: “We’ve improved, and you’re benefiting from it. As a result, we are adjusting our prices.”
3:26 The best companies don’t send emails explaining that their engineers are spending more time developing features, so their prices are increasing.
3:58 We do have templates on how to increase your prices without changing your service level available inside our Future Firm Accelerate program.
