Pricing Fuck Ups. Ep25. Raise your prices 5–10% at a time.

  • Argue the price raise
  • Try to squeeze more scope in
  • Complain more
  • Look at how much time you’re putting in
  • Feel scammed
  • Fell you’re squeezing them dry (because you’re greedy)
  • Look at every tiny, stupid detail to justify why they’re paying more.

Approach

You’re driven by the fear of losing customers.

What does happen

Moving your prices up at 5–10% a time, leads to more busy-ness.

Do different

Turn things around and think of your customers. Better yet, talk to them.

  • Where do they see things?
  • Where’s the value for them?
  • Are they underserved?
  • Are they overserved?
  • What are they trying to achieve?

Change how you see things.

Usual (wrong) way: Scope Cost Price
Different way: Value Price Cost
Answer this: If this (new) price is here, what could we do for it that is worth it?

Double (or radically increase) your price

Now think: Who would this be the right fit for?

Lesson

If you want to rev up your revenue, increasing your prices 5–10% will hurt you more than help you. Take a bold decision. Bold, not stupid nor reckless.

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Rod Aparicio

Rod Aparicio

Strategy Designer for Indie Consulting Firms