Now is the time to raise your price

Just this morning I was reading this article from the Harvard Business School about why lowering your price doesn't necessarily mean you will sell more. Unfortunately many service providers think that low prices will make their clients happier, and attract more business.

In fact the opposite can be true. When speaking with clients I usually find that their fees (or prices) are set too low. Rarely are they too high. So that's why I say now is the time to raise your price.

The article explains that the only way a lower price can help is when you truly have a low cost advantage. This comes through innovation or technology, NOT by scrimping on the way you do business. That is doing business on the cheap, not a real cost advantage.

So be brave when setting your fee structure. Look at the value you provide, or the difference you can make for your clients, and decide how you can communicate that in a way that will attract the right type of prospects.