Breaking Down Your Business | Small Business | Business Owners | Entrepreneurship | Leadership

Brad: If you're not scared, like if you're not making a promise that makes you go "Jeez! Can I say that?" You're probably not making a big enough promise. Welcome to Breaking Down Your Business Episode 343.

Jill: Yes it is.

Brad: [crosstalk 00:00:15].

Brad: I'm [Brad 00:00:18] from Anchor Advisors.

Jill: I'm [Jill 00:00:21] from the Founding Moms.

Brad: How's the eggnog going?

Jill: It's delightful and delicious.

Brad: Do you want some? Do you have some left over for tonight?

Jill: We'll see. We'll see. I don't know. I don't know. It's delicious. It's delicious. Are you going out tonight?

Brad: No.

Jill: Partying?

Brad: Amateur hour.

Jill: What? But it's going to be a whole new year in like a couple of hours.

Brad: It is, yeah. And I'll be asleep.

Jill: All right.

Brad: Because I'm... Whatever.

Direct download: Breaking_Down_Your_Business_EP_343.mp3
Category:Business -- posted at: 3:00am EDT

Brad: One of the things that I think is a difference between charging by the hour and charging by the project is that, when we charge by the project, we're charging for a result.

Brad: (singing)

Brad: Welcome to Episode 342 of Breaking Down Your Business.

Jill: Woo.

Brad: You can find the show notes for this episode at breakingdownyourbusiness.com/342.

Jill: We're going on tour, I think. The voice is hurting me a lot right now. This is Bruce, another Bruce, and we're happy to be here.

Brad: I'm Bruce from Anchor Advisors.

Jill: I just was going to say we're happy to hear ourselves. That's so embarrassing. I'm Jill from The Founding Moms.

Direct download: Breaking_Down_Your_Business_EP_342.mp3
Category:Business -- posted at: 3:00am EDT

Hi, we are trying something new this week. We are including whole transcription in the show notes. This time we used machine transcription and it got a little messy. Next time we will do better.

Enjoy!

Brad: 00:26 I'm Brad from anchor advisors. Jill from the founding moms. And today we're talking about how do you go about raising prices for your services. We've been talking about raising prices in general. Yeah. And today we're going to get into the nitty gritty. That doesn't sound fun, but before we do that, Joe. Okay. All right. Let's just put ourselves in a frame of mind here. Let's, let's get into a mood. So let's say that you're sitting down with a client, Hey, is this a romantic mood? Let's do you have romantic modes with your yes. Mood. We're getting home to, we're getting into the mood raising prices. Oh, got it. So you're seeing that with a client and you're about to tell them that this thing that you've been doing for them for like $4,000 now it's going to cost them $5,000 okay. How are you feeling?

Jill: 01:13 What's going on inside you? I should tell you, you didn't raise your prices enough, but you, you mean me? The client? No, I mean you the, if you're, if you're, I'm the one member, this news to the client. Oh, extremely fearful. Fearful, extremely fearful that they'll say so what kind of Iran? Oh, so you think they're just going to drop you like a hot potato? Yeah, of course. That's, that's the reality of my mind. That's not the reality of the [inaudible]. So, so your expectation, the thing that's most likely to happen in your mind is they're going to fire me. Something bad will happen. Something bad. There'll be upset at least. Yes. Yeah. Interesting. And so, so when you're feeling that way, what did you think? I was going to say? I'm just listening. I'm trying to be with you here. Okay. So when you're feeling that way, how confident do you think you come across?

Direct download: Breaking_Down_Your_Business_EP_341.mp3
Category:Business -- posted at: 3:00am EDT

What’s In This Episode:

We told you to always raise your prices last week... but how high is TOO high? 

"Which is the bigger risk? That your prices are too high or that they're too low?" - Brad

What someone says about your pricing has nothing to do with whether your prices are too high or too low. And if no one's complaining - you're priced too low. Pricing is based on two things:

  • how much value you can establish in the customer's mind. Some people will say no. That's okay. Why waste your time trying to explain the value to them? Accept that you're not the right fit and move on.
  • the confidence you have in the price you're offering. 

"There's always going to be someone complaining about your pricing." - Jill

Jill thinks that that confidence depends on what you're selling and that it's different for product- and service-based businesses. And that there's a fine line between confidence and arrogance. But overall, you need to know that what you're offering is worth many times what the value is. People want to know that you're going to make a big difference in their life if you're asking for a larger amount. And something will shift in your brain when you get a yes to a higher price. Jill and Brad discuss putting yourself out there with confidence, and what to do if your clients can't afford the higher prices (good news: there are reasonable options!).

What do you think? How high is too high?

Direct download: Breaking_Down_Your_Business_EP_340.mp3
Category:Business -- posted at: 3:00am EDT

Ready to raise your prices in 2020? Jill and Brad will tell you how.

"Higher-paying clients value what you do more." - Brad

Brad is a firm believer in raising your prices, and he thinks you should be charging a little more as often as you can. The increase doesn't have to be anything crazy, but each time you price yourself, you know a little more than you used to. Raising your prices allows you to give your team raises or hire extra help in the coming year if you need it.

"You should all say no more often... you never know." - Jill

Jill voices the concern of many business owners: what if they try to raise their prices, and it doesn't work? That's a risk you take, but it's better than the alternative... that you get priced out of your business while others don't. But it's critically important that when you raise your prices, you're clear about why. The worst thing that can happen is that they say no, but they may come back in the future, or they may find your value appealing and be able to come up with your asking price.

Jill, Brad, and Saul then talk about timing, an inside look at their pricing processes, and how you tell your clients that prices are going up.

Ready to raise your prices?

Direct download: Breaking_Down_Your_Business_EP_339.mp3
Category:Business -- posted at: 3:00am EDT

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