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Why Some Business Owners Must Raise Prices

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How do you grow a business when you really can’t outsource YOU?

What if you’re a fine artist, or in another creative field in which people pay for a unique product or experience that only you can deliver?

Business owners like this can find themselves with a real luxury problem: too much demand and too little time.

One of the fastest ways to relieve the pressure is to raise prices.

Unfortunately, this advice is often easier said than done. Raising prices can be tough for many small business owners.

It can stir some deep emotions like fear, guilt, embarrassment and a litany of self-worth issues. Not to mention the almost immediate fear that enters our mind that if we raise prices too much, people will just stop buying!

In this video, learn about a fine artist going through this right now, along with a classic story about the surprising impact raising prices can have on sales.

Creative people have other options for growth beyond raising prices. Think licensing deals, replication in the form of prints, books and more.

But when you’re on the edge of burn out and demand for your unique skills is sky high, a price increase can quickly relieve time pressure and provide the financial resources to strategically map out your next level of growth.

In the comments below I’d love to hear your take on raising prices.

Have you raised your prices when demand increased? Have you raised prices simply because you wanted to reposition yourself in the market?

What was the impact on sales and your overall business?

Leave as much detail as you can.  Include lessons learned and insights you feel would help others!

As always, thank you for reading and watching. If you found this useful, go ahead and share it!

xoxo

Marie Forleo

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Laura

I’ve been dealing with this same issue since I opened by business just 7 months ago. And like you said, whenever I’ve raised my prices, I’ve just gotten more sales! But I guess I haven’t raised them enough… because I’m still overwhelmed with work. Haha.

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marie

Luxury problem Laura :)

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Ameena Falchetto

This is SO important! I’m always telling my clients to raise their prices!

In my first job (many moons ago) I was marketing cosmetics – in my first board meeting I was there taking minutes (joy) and the directors were complaining about a particular lipstick brand that wasn’t selling – it was an exceptional product but cheap … I decided to speak up and told them it was priced wrong and should be at least DOUBLE the price – a week later the 80+ stores were all begging for more stock!

Since then I’ve used that as a rule for every business I’ve run. It’s a challenge but stick by it, know your worth, and you’ll be laughing all the way to the bank!

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marie

Great lipstick story Ameena!

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Kimberly Johnson

YES YES YES.
I need to do this. It’s scary but necessary and I think will take my service to the next level. When I am charging top dollar and what I am worth, I will be more inspired to up my professionalism and offerings without feeling resentful or exhausted. Here we go!

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Uxío Fraga

Hi, Marie!

I can certanly believe we don’t guess the perfect price for our product(s) the very first time. We just show a price tag we think is a fair price and that’s all. Maybe (probably) it is too lo low or even too high.

My question/concern is: Ok, I wan’t to explore in order to find the best price tag for my product. I just want the Income = price x sales to be maximized.

I tried to explore lowering the price of my product (through a time limited offer). I could see an awesome boost in my sales. I’d also like to explore rising the price for a while, buuuut…

… the problem is I don’t know how to return to a lower price if Income (price x sales) is smaller!

What’s your suggestion here? Haven’t you ever rised your prices to find you were earning less money? How did you fix it?

Thanks in advance! (Love your Q&A sessions!!!)

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Page Huyette

Uxio,

What I’ve done is break my larger products into bigger pieces, keeping the guts of the product intact, but offering other parts as a la carte offerings that someone can purchase as they go along. Once they are happy with the original product, they often purchase the smaller add-ons.

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marie

Hi Uxio! That’s a really valid concern. If you sell products online, you can split test 2 prices as a marketing test to see which price converts better. If it’s service based, you may want to re-package your offerings so that you have a lower priced offering (which you know sells) as well as a higher priced package that you are testing!

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Llyane

Oh, this helps me too, a lot!
Thanks,
Llyane

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Jean Huang Photography

Nice video, Marie! I’ve always enjoyed them. Thanks for the underlying message! As many photographers are cutting prices (selling themselves cheap) left and right, I stuck with my prices. Hey, if I can’t feel good about what I do, let alone running around trying to make the sales that don’t even feed me, I don’t know what will keep my inspirations coming.

Keep up the great work and happy holidays,

Jean

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rea kelly

Oh Marie, Marie, Marie. You came to my attention through Tanya Geisler here in Toronto. I have not stopped listening/watching your awesome energy, advice and resources. Today’s Q&A was particularly relevant to me as I am an artist who currently doesn’t charge very much. Yet my audience, which is growing slowly, (ten years and counting), RAVES about my work, come into my display areas, and breathe, and sigh and smile. They all say my art gives them joy, peace, whatever. I know I paint joy. Even on 9/11, I did a painting, and it was all uplifting/optmistic. That’s when I knew: I can’t paint ‘sad’, ‘anixous’ or ‘pain’ (who hasn’t experienced those?). All I can paint is joy. Lucky me.
Marie, you make me realise how important ‘me’ is to my art. I should do some video blogging on my site so more folks would see me and my work.

Let me ask you a Q: How to expand my exposure as an artist, without it costing too much. (Have you noticed there’s a big ol’ recession on? It’s getting to me. I’ve lowered my prices (not having seen your ‘Raise your Prices’ piece until today), and I’m doing ok, but I’d surely love art to be my one and only job. Alas, it’s only a sideline to something more lucrative. I should rethink what I just said; in the past year my ‘day job’ has not been more lucrative. I’ve been on unemployment insurance, and have pinched and scraped and made it through this year, but I’m looking at opening up a new business, service-oriented, directed at seniors (a growing/sustainable market), and will take into account my awesome producing skills, but put them to work helping others. This, my friend, may be my true calling. I have a soft spot for kids and seniors. I’m in the middle of those, raising two awesome teens, and need to earn enough to help with university expenses. My kids have helped me raise them. I thank them for their help often.
THank you, Marie, for being so ‘up’ and awesome.

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Vicky

Hey Rea, have you thought about merging your art skill with the service based business idea that you have? Marie does exactly that! I can imagine that you could create your own sort of high priced service with amazing décor/art in whichever niche it is that you work it. You could ask your art based clients to provide testimonials which would be used for your new service business. Always remember that no matter what economy we’re in, there are plenty of wealthy people willing to pay for something good.

As for marketing on a budget- I can totally relate! But what I found is that the internet is an incredible tool. Also referrals, why not incentivise your current customers to recommend others? You can also use free PR opportunities to drive attention to your business especially if you have a unique story/journey to share that will not only catch media attention but inspire others. Wishing you the greatest luck with whatever you do!

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Lainya Magana

Hi Vicky and Rea! I just wanted to chime in and say that social media is a tremendous tool to help you with free and cost effective marketing. All you need is a computer, your own authentic personality and your creative talent and you can tap into a world of collectors, art dealers, curators and art writers who are just waiting to discover your work. I’m the founder of an art marketing and PR agency and our clients have had tremendous success in their careers by utilizing digital tools such as blogging, social media and search engine optimization. Best of luck to you!!

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rea kelly

Thank you Lainya! Thank you alot. I’m working on a video blog just now, so folks can a) meet me, b) watch me paint, c) learn how and why I paint. I think that might of interest to some folks. Thanks.

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Lainya Magana

Any time Rea! And a video blog is a fantastic piece of content to provide to your audience. When it comes to web marketing, the same rules hold true for artists as they do for other businesses: you want to Serve, Support and Sell to your audience. A video blog is a great way to serve. Just don’t forget to distribute it on all of you social channels (Tweet about it, Facebook it, embed it in your newsletter). And capture that audience by giving them a clear call to action to “Join You on Facebook”, “Learn More” (link to your “about” page on your website), “View Your Work” (link to your gallery on your website) or “Subscribe to Your Blog” etc. etc. Always be sure to turn those one-time viewers into a repeat audience of engaged followers. Best of luck!

september

hello lainya, rea, and vicky…
i am chiming in here to say how incredibly effective social media is for my business and all that i have time to do currently is a blog (with a monthly post) and facebook (which i am still figuring out). it builds slowly and the next thing you know it has a life of it’s own. lainya… do you have an email address? website? i am interested in hiring you as soon as i can!
best,
~september

Lainya Magana

Hi September,
Thanks for sharing your Social Media Success story! Isn’t it an exciting avenue to explore? I would LOVE to speak with you about the services I offer at A&O – my art marketing and PR agency. Feel free to drop me a line at lainya@aopublic.com or check out my website here: http://www.aopublic.com I look forward to continuing the discussion!

Vicky

Hey Marie, you’re videos always seem so in tune with my life lol!

As a private tutor, I’m in unbelievable demand (and loving it). I love my job and my current clients. Because parents love the one to one nature of what I do, they want to hire me and not a referral which means it’s hard to expand via outsourcing or hiring new tutors. One idea that came to me (and I recommend other service based entrepreneurs try) is this:

When you’re in demand/fully booked offer potential new clients a one session exclusive. E.g when new enquiries come in, tell them you’re fully booked months/ years in advance but you can offer an exclusive high-priced coaching/tutorial session that’s held over a few hours (or a full day if possible). Include the scarcity principle and price a few times higher than usual ones and offer exceptional value during the session. Funnily enough this idea came to me this week because I’ve been trying to figure out how to manage the number of new requests I receive.

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marie

thanks for the share Vicky! I’m sure it will spark ideas for a lot of our peeps :)

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Llyane

Hi, Vicky

Besides my acting business, I have a tutoring business that works and keeps me very busy.
I’d love to chat with you re: experience in the market, prices, etc.
You can contact me through my website, if you like the idea.

Thank you and Marie for the great ideas!

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Victoria Gibson

I definitely believe you get what you pay for, Marie! And you ARE that good! Thanks for helping me elevate my biz xxx

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marie

LOL! Thank you Vic :) xoxoo

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Pamela Grow

Marvelous Q&A Marie! I wish that more art schools (or should it be ANY art schools?) taught basic marketing concepts. Artists seem to accept the fact that they will be “starving artists,” creating a self-fulfilling prophecy. Beautiful work, btw. Where can we buy?

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marie

Fantastic Pamela – check out September’s work at http://www.vhay.com :)

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Bridgette Boudreau

Thanks for the link Marie! Definitely want to check out September’s art. And I was just talking with a good friend about this topic yesterday–girl is a rockstar and needs to raise her prices. I’ll be sending her your video.

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september

wow!… thank you bridgette. i so appreciate your comments re my work.

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Johanna

Morning Marie. It’s beautiful over here in Mattapoisett. As always, thanks for this great video—it’s something I am going to do in 2012. Actually, it’s not so much raise prices but offer other programs for a much larger investment, more access to me and more done for them materials for my clients. As a coach myself, I know that my ability to help young entrepreneurs find the food that works best for them, include self care in their routine so they have less stress and more time during the day is priceless! It’s a bit scary to think about, (asking for all that $$) but I know my service can’t be beat, is on demand and worth tons. The financial security on my end will also be priceless.

A priceless situation for the two of us! Clearly a win-win.
xo Johanna

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Johanna

(and how can I get my photo to show when posting comments?!) Thanks!

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Summer Alexander

EXCELLENT video (as usual)! When I launched my business earlier this year I knew I was way underpriced based on the research I did to learn what others in my line of business were charging. I figured since I was new and just starting out I needed to price myself at the lower end of the scale (real low).

Well the only thing I got from being priced to low was clients who wanted to pay low prices. I did yet some more research and discovered the same theory you mentioned in the video about how raising prices increases the perception of value so I decided to give it a try.

It worked! I got more clients, better clients – Yes, now I was actually attracting my ideal clients! Imagine that. Thanks Marie for your outstanding work, I look forward to every Tuesday!

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Nicola

Love this story Summer – thanks for sharing!!

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Vanessa

Hi marie,

Thanks for this! I have been thinking about this for a while now and the past couple weeks it has been in my mind to finally make a decision on how much to increase my rates. I am a Massage Therapist and I specialize in a form of therapy. I have grown a lot over the past 3 years since my last increase. It is necessary to increase even though I still have the people who complain about $. I think people complain about $ whether they spend it or not!

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DivineYoganista

Love it. Totally agree.

This is not for everyone though meaning you have to be at a point -just like the artist you mention in the video- where you are in demand enough to sustain this raise in prices. Charging too much from the get go when you have no clientele, no reputation and not much experience is not the best strategy. So many artists or entrepreneur charge too much too early on in their business yet they don’t bring any value! That’s called inflated ego and that won’t pay.

However if one does bring value, experience, quality and has built up a steady flow of sales/clientele it makes sense to increase your fees.

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Dodie Jacobi

I was just thinking about a price increase; it’s been at least 5 years since I last bumped! Thanks for the reminder of its importance.

In my first business as an event producer (I once was a wedding expert!), after the first year, I found that I would need to charge 8 times more to become profitable. With nothing to lose, I hiked the price. The second year, my overall sales went down 16%, but my time spent for those sales went down 75%. I’d found my formula. Thereafter, sales continued to climb and from clients who were enthusiastic about my service at any price.

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marie

Hi Dodie – thanks for breaking this down and congrats on keeping your eye on the big picture. What you just shared is HUGE. ***THIS is how you need to look at your overall business peeps!****

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Linda Ursin

I’ve raised a few of my prices with up to 50 %. Haven’t been long enough to see any effect yet though.

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Nicola

Thanks for the reminder Marie. I have about 50-80 paintings being leased by companies and I haven’t raised my prices in about three years. I’d forgotten!! I’m sitting on a gold mine and forgot to bring my shovel.

Thanks for the reminder.

I’ll get onto it with the gallery this week so when their terms run out we’ll increase the prices. It’s also good for collectors to see the value of your work is going up.

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marie

Congrats on your success Nicola!!

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Debi

As always, great stuff! This is so true. One big benefit (besides the extra cash) is that the QUALITY of clients and customers increases with your prices. You don’t get the WALMART shoppers who are always looking for a deal or to negotiate rates. They are easier to work with and happier. I also find they get better results. The important thing is to believe you are worth it in order to close the sale.

Marie, you should do a course on just this topic. Charging what you are worth…there is so much need for this message to women in business and there is also a psychology behind it to do it right.

happy holidays!
Deb

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marie

Thanks Debi – it’s on our list!

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Marta

Hi Marie!
Great topic, as usual!

I’m a private tourguide in Barcelona. I too have had good experiences whenever I have risen my prices. It was scary the first time, but by the end of the year I had had more work than many of my colleagues. So now I’m confident when I need to update my prices. I’ve got so much demand that now I’m “outsourcing” my tours more often to colleagues I trust.

So here would be my TO-DO list to plan a price rise:
1. Be aware of your competition prices: the cheap, but specially the expensive ones! As that’s where you are aiming to be ranked.
2. Offer the best service: be good at your job and make sure your clients know that! They can see where quality is and know it has a price.
3. Increase your prices gradually, if you don’t dare going for big changes. I review my fees once a year and increase them at least according to the local CPI.

ONE THING I’VE LEARN FROM “BEING EXPENSIVE”: I’ve learn to respect each one’s freedom to choose their fees, and my own (and my client’s) freedom to choose if I want to buy or not. I’m not anymore the kind of person who rants at “high prices” (because they can’t afford them). Now if I can’t afford it, I make it a goal to be able to!
Life is better this way! ; )

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marie

Love this Marta…and I LOVE your city! Josh and I had such a magical time there this summer ;)

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Llyane

Hi, Marta
“if I can’t afford it, I make it a goal to be able to!”
I love this approach! :)
Since I (re) started to use it, live is better, like you say
Llyane

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Carolina

Oh Marie, you are so damn great!

This advice came just in time as I am getting ready to change my prices for 2012 and I always feels o uncomfortable about doing so. Thank you for such great content, and yes, I would let you know how things go :)

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Jessilicious

This is a very timely topic for me, Marie! I have been struggling with my prices since I started my business and always feel like I NEED to raise them, but am afraid that people won’t buy when I do. So this message was definitely for me today! 2012 is going to see some brand new pricing in my biz! :)

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danielle

Hi Marie,
I had a big issue with this during B-school and I remember thinking that if i charged more my private clients would go and hire a yoga teacher who charges less. Then I realized that I have double the experience as most teachers in my town, and infuse my sessions with much more than just “yoga on the mat.” I bring them a printout of what poses we do that day, I offer them meditation, and usually bring healthy food that I cook everyday.
When I told my first client, she actually said ” I was wondering when you were going to raise your rates- you haven’t charged me more in 3 years!”
I now know that some teachers may charge less, but they don’t provide what i do, and they aren’t me- my clients are coming to me for the experience I provide, and they are willing to pay a bit more for it. Like you always say, it’s about the quality of the service you provide, and you want customers who value that.. I now know the difference thanks to you!

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Kat Fulton

Awesome Danielle! Love hearing about the inside of your business… here AND in our b-school group. Well-done with higher rates! You are inspiring!

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marie

D – I love hearing the level of service (healthy food?!) that you bring to your clients. EXCELLENT work!

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Tracy aka Chief Princess

Indeed, indeed. I think that it’s worth mentioning that a limited supply also plays a key role in higher prices. I’ve decided to rework some of my products because of production issues. I’m going to raise the prices for a few products and only offer them on a limited basis.

Like a Birkin bag – having money alone won’t get you one. I’ll keep you posted Marie.

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Lainya Magana

Hi Marie,
First, I’d love to thank you for all of the wonderful work you do! You’re a tremendous help to so many of us entrepreneurs. However, on this topic of raising an artist’s prices, I have to disagree.

I’m an art world professional – a NYC curator, former Gallery Director for several San Francisco art galleries, an art writer and the founder of an art marketing and PR agency. While I believe you are correct about raising prices in other areas of business, this is very risky to an emerging or mid-career artist. May I offer my two cents and caution artists to consult with their gallery, art consultant or art dealer before raising their prices?

I’ve seen this all too many times – an artist raises their prices without first assessing the market value of their work and they out price their real buyers AND (this is important) the galleries who can sell work at that price point to their collector base.

Over inflation of art work is a risky endeavor because, if you out price your market or over value your work before your career has proven sustainable, you lose your audience and make lowering your prices again an action that can estrange your current collectors who paid a higher price which then devalues their investment.

The safest solution for artists who want to raise their prices is to assess the market by first seeking the expert knowledge of their managers, advisors and dealers. Hope my two cents was helpful!

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marie

Lainya- I LOVE your 2 cents and thank you! I’m not sure of the support team September has around her at this point (managers, advisors, dealers) – but all artists who see and read this will benefit from your insight.

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Lainya Magana

Thank you SO much for your kind words! I’m relieved I didn’t come across as off-putting!! You’re the best Marie. Thank you for your expertise and for engaging the opinions and insight of others. It’s through dialogue that we all get to learn and grow. Yay!

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marie

Of course!! That’s why I LOVE our community. I love the dialog and insight Q&A can spur. When all of us share our stories, ideas, resources, and experiences – everyone can learn and find solutions that work for them. You are an expert in this field and I’m grateful that you added your very valuable 2 cents ;)

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september

hello marie and lainya,
i appreciate you both …. thank you… i have come to understand the importance of assessing the market and am emerging into a place where i feel that the value is there but have still been shy about raising the amount of the work. i have been told by gerald peters, a prominent gallery in santa fe who has just started carrying my art, that i have to raise my pricing but to do it thoughtfully. so you both are correct… marie is giving me the courage and lainya the wisdom. this dialog is wonderful. thank you.

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Lainya Magana

Hi September!
Thank you so much for your feedback on the dialog. I’m SO happy it was useful. Isn’t Marie the best when it comes to giving us all the encouragement, motivation, and useful advice we need and deserve?! Congratulations on placing your work with Gerald Peters! It sounds like you’re on your way to achieving big things!

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september

hi lainya,
yes… marie is the best. thank you in regards to gerald peters. are you taking on clients? do you have a webpage? i can’t hire you right now but would like to learn more about what you do in regards to pr for artists as know that i will need this in my future. and if you aren’t taking on clients maybe you would be able to direct me to someone who is thriving in social media for artists.
do you have any thougts?
thank you for your time in responding.

marie

How beautiful is this? September: here is Lainya’s site: http://www.aopublic.com/about

september

hi lainya,
i just looked up your webpage thanks to marie… what an incredible business you have founded and you have quite a resume! i am so impressed and will be in touch soon! i am honored to have been connected with you via this platform. it is amazing as this is just what i was looking for… you are filling a much needed gap.
cheers!
~september

Lainya Magana

Hi September,
Thank you so much for your comments! And BIG thank you to Marie for sharing my site ;) I love your work, September, and it would be an honor to discuss a working relationship whenever you feel the time is right. Best of luck to you until then!
Lainya

september

hello lainya,
thank you in regards to my work…i will definitely be in touch when the time is right to learn more about what you do.
best to you too and have a wonderful holiday!
~september

Shannon

Hi Marie,

I appreciate all of your advice – you are always so bang on!
Once again, on this topic of pricing I totally agree. An earlier comment was made about the timing of the price increase and I would like to hear your response to this.
I am a Designer of custom wedding gowns – and have very little competition in my market. I know the demographic that needs and wants what I do, but I am “new” to the market. Even though I have incredible experience (beyond even established bridal salons) of 25 years doing what I do. I just made a huge leap into a brick and mortar and understand all the stats telling me that moves like this “take time” for business to respond. I don’t neccessarily have a clientelle base that engages in “repeat” buying, but they do “repeat” my value and exceptional product to their sisters, nieces, grandaughters and friends. That said, my clientelle base is still very small.
I hope you understand what my questions are – what I feel like my dilema is and can respond.
Thanks!

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marie

Hey Shannon! I’m not sure what your exact Q is here – if you can restate, we have an incredible community that will surely throw in ideas for you!

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Anne R.

Shannon, I think I understand. There’s concern you aren’t bringing enough business in to support this big move with additional overhead. Perhaps your expectations were that having a store in itself would instantly bring work in the door? As you already know from years of experience in a service business, word of mouth is the strongest source of future clients and it builds gradually, no matter what location you’re in.

Since you are a service with a specific market of one time customers, you need to strengthen your affiliate and social media strategies to attract people who are at that critical action point and in the market for customized solutions. You’re very fortunate to be in a business with a defined timeline of decision making! In your case, I would create marketing strategies with people who do custom wedding ring design since the ring often comes before the dress. Networking with other customized wedding professionals will give you the strongest bang for time and networking invested. It’s a natural fit and it can really help you branch out regionally.

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Shannon

Thanks Ann R. for your thoughts – great reminders of some things I do know: word of mouth is THE strongest marketing, and it does come down to “time” – it does take time. I KNOW the value I offer and that my work is amazing…and I am worth it! So, I will continue to hang in there and keep my pricing where I know I am being paid for the value and experience my brides recieve.
Feel free anyone to stop by my site and give me your thoughts: http://www.vuedesign.net or stop my facebook page: http://www.facebook.com/vuedesign

I appreciate the insight!
Cheers all

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Jason

Hi Marie.

First of all, thanks for the great videos you put out each week. A friend turned me on to you a few weeks ago, and I’ve been enjoying your fun, insightful and inspiring Q&A sessions.

I’m launching a new personal development and scuba diving program in the Caribbean, and just last night was talking to my marketing gal about various incentive and promotional ideas (e.g. sign up by XXX and save XXX, or refer someone to the program and make XXX, etc.). I’ve been thinking that “charging less money” or “giving people money” is what I need to do to sell the program…

After watching this week’s video, I’ve decided that I’m going to start off giving away LESS, and see what happens. (I can always give away more, if there’s no uptake.)

So, thanks again!

Keep on rocking it,

Jason

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marie

Congrats on your new program Jason. Really think about how you want to position your company in your market. If I were you, I’d take a look at the whole field of “competitors”, see what they offer/what they don’t and create innovative packages that blow people away!

When I’m on vacation, I like things packaged together to make it “easy” on me: pick me up from my hotel, include extra touches, healthy lunch, etc.

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Jason

Thanks for the tips, Marie—you’ve got me thinking! :)

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Mia

Hey Marie,
Great topic and answer. I remember first raising my prices for my SEO services this past year and it was a serious journey. I justified my raise in prices because
1. I knew I could deliver
2. I knew I had a great SEO recipe
3. I knew that I would deliver the value my client was looking for at a way lower price than bigger SEO companies.

But it wasn’t till I settled into my own value and came to grips with my deservability and that I was worth it, that I clearly communicated with confidence my “new” prices. Of course my new clients didn’t skip a beat and didn’t realize any kind of price change since they were new to my services, but it felt really good to get paid more for the same rockin services. In turn, my clients still get screamin SEO services for a fraction of what they would pay anyone else so it’s a win/win.

Thank you for rockin MarieTV! I look forward to givin you a video response here someday soon! In the meantime, keep makin people smile and dollin out juicy content!
~Mia

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marie

Nice Mia!!

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Maria Ross

Right on! I recently changed my business model to something more sustainable for me. As a branding consultant, I used to do full projects for mid-sized companies and hourly consulting sessions for solopreneurs. I love working with solopreneurs but I was giving them WAY more than one hour worth of work – and I didn’t feel like I was taking them across the line.

So I created a day long package. It’s priced way higher and I now attract the people I want to attract – and don’t waste time trying to get out of clients I really don’t want. Plus, it’s more value for the client, I feel better about the work I’m doing for them and everyone wins.

Raising your prices can be hard – but if you believe in the value you provide, that confidence will shine through and you’ll begin attracting more of your ideal customers. Thanks Marie!

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marie

Awesome example Maria.

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Sidsel Dorph-Jensen

Such a juicy Q!
Especially for artists & makers!
Couldn’t resist doing this little video response:)
http://www.youtube.com/watch?v=KqE0wVGxjPY

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marie

OMG – this is GENIUS Sidsel. **** You guys, def. watch this video response. GREAT story telling in LESS than 60 seconds.*****

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Alison

Now THAT is amazing :-)

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september vhay

i love your video…. !

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Joyce

Sidsel… that video is sooooooo cute & it doesn’t hurt that it packs a lot into less than 60 seconds!

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Llyane

Hihihi
Fun & wise
Thank you!

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Sidsel Dorph-Jensen

Well thank you all!
It was such fun to make!

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Alejandra

This is so something I deal with/think about constantly. People are constantly telling me that my services and classes are too expensive, which I find so frustrating, and to be honest, even a little offensive. I charge what I need to charge, and I put tons of hours of work into each class developing & testing recipes, sourcing ingredients and lugging them throughout the city, designing the class workbooks, marketing, scheduling, doing PR and promoting the business, etc., even before I start teaching. (And then cleaning up and lugging everything home after the class, only to start over again.) I own a culinary concierge business in NYC that offers an array of personalized cooking classes, workshops, and in-home services designed to empower clients with the skills they need to take control of their kitchens and become successful home cooks. It’s a highly personalized service and my group classes are also very hands-on with tons of one-on-one time. I charge the same as the big popular cooking school in the city, but they pack their classes with 30 people, only let the student cook a small portion of the full meal, and offer no personalized attention. I KNOW my classes are worth more than that, but I have difficulty figuring out how to get people to understand that. Anyone have any ideas in that respect? My gut tells me that I’m just not reaching the right clientele. I know there are people who can and will happily pay for my classes and services–I just need to find them and let them know I’m here!

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Vicky

Hi Alejandra (love your name btw),

Just thought I’d chime in and try to provide some advice. I think your business idea is really good- there are so many times when I’ve thought “damn I need to either go to a cooking class or get someone to teach me how to cook!” Since I’m not American my NY knowledge isn’t great but bear with me.

There are a few things I think you need to consider- Being based in NY, I’d assume you have an array of potential high-end clients in places like Manhattan and Greenwich Village etc. I think the first thing you need to do is to test; test exactly who your ideal client is and how to approach them. It seems like you’re appealing to wealthy single types but what if there’s a big demand amongst busy mums who want to make amazing meals for their kids and husbands? To test your niche, I suggest trying some PR- contact different types of magazines telling them about your service, emphasise your USP’s and send lovely photos of yourself and your classes. Also like someone mentioned above, social marketing would be great for your business. Follow people on Twitter and LinkedIn who are based in NYC. Perhaps even try a very low cost Facebook ad. Finally I suggest checking out Angela Jia Kim’s website (savourthesuccess.com) she’s amazing and runs a high-end cosmetics business in NYC, she has a knack for targeting high-end consumers. She does all sorts of great marketing things, study her religiously! Good luck :)

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Heather

Love this week’s topic! In the past 2 months I’ve been pricing my services amounts that I never would have dreamed of charging a year ago – people are saying yes without even blinking. How delightful!

And yes Marie, you’re worth every penny.

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marie

NICE work Heather and thank you :) Keep killin’ it girl.

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Catherine Just

YES!!!!!!!! Right on Sister!

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Patti Pruhs

I sell handmade jewelry and hosted a Holiday Open House in my home last Friday. I was sweating about my prices being too high, and asked my artist group if I should lower them. Everyone agreed I shouldn’t, and I sold $1,084 worth of jewelry in 4 hours! I’ve also experienced the same thing in a salon. They wanted a 40% cut, so I simply raised my prices by that much in order for me to get what I was asking. The jewelry was flying out the door. You are right on Marie! Love this and will be sharing it with everyone. You’re awesome!

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Stacey

I went from earning $13 for my spiritual business coaching to $1200 for a 4-month program.

Here’s how I did it:
Clarity- I got clear on who I wanted to work with.
Competence- I realized that I have value to offer clients.
Confidence- I believe that I deserve to be compensated well or my expertise

These three elements, along with having a system to deliver my expertise, helped me increase my prices. It’s so true that higher-paying clients are easier to work with (and more motivated).

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Llyane

Thanks for this, Stacey!

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Llyane

I have a question: how do I raise my prices for existing customers; they get the same service, wouldn’t they all leave? :)

Do I use an arbitrary date as in : starting the new year my prices will be so-and-so? What would be the reason for the price raise? Wouldn’t I have to offer more value for the added price?

(I am too at the edge of burnout :))

Thanks for your 2 cents,
Llyane

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Stacey

You’re welcome Llyane!

It sounds like it’s time for you to leverage your expertise.
Depending on what you want to do, you can create a new program/service by:

1. Adding more value (which could mean more time investment initially)
2. Making the service high-end (i.e. a VIP program for 20 people per year = less of your time and higher fee because of exclusivity)
3. Adding a new income stream (like a membership program = less investment of your time, but you can reach more people at a modest price point)

Keep in mind that ‘value,’ like beauty is in the eye of the beholder. To one person, $12,000 a year for coaching is inexpensive; while to another it’s an exorbitant amount of money. But it all starts with you believing in the value that you’re delivering (because you can’t sell anyone anything without first being ‘sold on it’ yourself).

In terms of announcing your price increases, send an email to your list letting them know that your fees have increased.

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Jen aka Pincurl Girl

Marie,
Wow, loved your Q and A today! I have been going through the same dilemma. How could I possible reach my 2012 $$ goal without working 24 hours a day? I have a bad habit of wanting someone else to give me permission to be a successful artist, after watching your video, I have finally given myself that permission!

Thanks tons,
Jen

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Dana

Love this concept! And would do it if i could even sell my handbags at the prices they are now =( Family and friends keep telling me I should lower my prices and I don’t even use the typical formula of double/double for pricing. This pricing is a battle I have been having for years! My bags are time consuming and I know i’m underpaying myself as it is… I need to find the market of women who appreciate handmade handbags… hello, anybody out there? ha =)
love your Q&As Marie – keep on rockin’

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Sarah Barrett

Marie,

This is soooooo helpful. I watched the video and just kept nodding my head! Nobody does what I do…at least not EXACTLY the same thing. This economy is bad though and I have seen my sales go down this holiday season. I will absolutely try this! I’d love to know what you think of my site, if you have a chance! Thanks for always keeping me laughing with these videos…you’re terrific!! Happy Holidays!
Sarah :)

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Sarah Barrett

It would have helped to have my website handy, huh??

http://www.sarahbeargifts.com

Thanks! :)

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Jacqueline

Does this advice apply to ebooks? The whole ebook world is a bit frustrating pricing-wise. I’m not sure who to model off of. Thanks for any advice!

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Stephenie Zamora

It’s so true that you get what you pay for! I’ve been slowly raising my design prices over the last few years (most recently after my loving kick in the butt from YOU) and it’s been awesome. At first I have to say no to work and clients that don’t want to pay it, but it’s also true that you create space for the RIGHT people to come in and work with you. xo

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Sarah Selecky

When I raised my manuscript editing prices, I found that the writers who chose to work with me were taking their own work VERY seriously. Not all of my students chose to do one-on-one work with me after the increase, but the ones who did were really and truly committed to their work. And this made my work much more gratifying.

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Anne

We deal with this all of the time in our industry and people never believe it until they actually do it! Creative people NEED TIME to dream, reflect, imagine, create, and nurture their vision… and that can only be accomplished when they curate their customers to focus on people who are willing to truly value them for their creativity and not just because they have the tools.

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Katie Bennett

I make childrens clothing, at the beginning it was just a hobby, people would see what I was making and want some, and this is how the business grew. It was not until I raised my prices that the business went from a hobby to a full time job! I quit my day job and now work around the clock filling orders. I have become so popular that I can’t keep up, and am again at that stage where I am considering raising my prices. I think it is a natural progression in a business, and you will know when it feels ‘right’. I am like everyone else, I feel guilty, don’t want to loose my valued clients that have been with me from the start, don’t want them to think I’m greedy. But I think its just time to suck it up and do it! I am now at the stage where I have been approached by shops who want to stock my clothing, but I can’t afford to wholesale as I don’t have enough room to move on discounting for wholesale. So I think to be taken seriously as a brand I will have to up my prices, and it will lead to a whole new avenue of sales, I’m excited!

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Fiona Campbell

Hi Marie, unfortunately I can’t watch this weeks video (it keeps stopping after a couple of seconds which might be because I’ve just moved to the foot of a massive mountain, I hope not) but I think I get the jist of it from the comments left. I teach people about how to hunt for and gather wild food and I’ve always priced myself way lower than the competition because I believe this knowledge is our birthrite and, quite possibly, our future and so should be available to all. But, I can’t make a living out of it. And I suspect that, bar maybe 1 or 2 people over the last year, the people on my courses would have paid way more and not even thought about it. Maybe I’ll satisfy my “knowledge for all” ethos by offering conscessions and price myself up where I belong.

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september vhay

omg marie….
get this…… i LOVE your videos… they are always a tuesday morning treat…i forgot that i had sent in a Q…..so i sat down with my tea to watch and i read the topic and thought…”hmmm… that is a good topic, i am struggling with that…. looking forward to this one”…. then when you said “september asks”…i thought… “how odd, i have only met one other september in my life”…. then my images came up and i realized… “holy #@$!%… that’s me”…. :)
you are RIGHT ON! and i am going to raise my prices now! i can’t thank you enough… i have known that i need to for years but have been afraid to do so until now, there is something about how concrete you are that made it clear that i have to do so…. and i will send you a video response as soon as i figure out the tech part of how to do that.
have a wonderful holiday season and thank you again so much for your commitment to helping women entrepreneurs. i am so grateful for you!
love,
~ september

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marie

LOL! So glad you enjoyed the video. Making a video response is pretty easy on Youtube. DEF read through all the comments here, as there is some additional insight here from Lainya in the art world – important info. Also, at least one other commenter is interested in your work :)

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september

hi marie,
i have had already had a few people contact me via my website due to your video who concurred with what you had to say. i am interested what lainya had to say so responded above. i will hire someone like lainya as soon as i can… which will be sooner now due to raising my prices…..this dialog is incredible.
cheers!

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Lainya Magana

Hi September,
Thank you so much for your interest! I tried to respond to your inquiry above but I don’t think it went through. Please feel free to visit my website at http://www.aopublic.com where you can read about our services, peruse our testimonials, and submit an inquiry if you’d like to learn more. I hope to talk soon!
Best,
Lainya lainya@aopublic.com

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Tiphani Montgomery

Just raised my 1-on-1 Get Up + Go Harder Strategy Session from $300/hr to $500/hr after watching this video….because I’m THAT good and no one can do what I do!

Thanks for this video Marie!!!

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Rosemary Breen|PsychicRevolution

It takes b**** to ‘raise your prices’. Im bringing a new service to my market in the New Year. Will I take Marie’s advice? First Ill have to grow some b**** and then I will.

Cheers

Marie

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Tiphani Montgomery

Hey Rosemary!
I just made a video last week called, ‘Why I Want You To Grow Some Balls!’ I think you’d enjoy it:)

http://tiphanimontgomery.com/2011/11/21/why-its-essential-that-you-grow-a-pair-of-balls/

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Shannon

Hey Marie,

Oops…I re-read my post and my question was very confusing.
Back to the time frame. When you are first starting out and your “product” is custom designed and you don’t really have a “support” base, do you start out of the gate with higher pricing, or wait a bit and then raise your pricing? (I’ve been in business for 1 1/2 years – just moved into a brick and mortar 3 months ago. But I’ve been doing what I do for 25 years)
* now I hope my question made sense :)

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Jody Jelas

Love it Marie! 7 months ago I TRIPLED my prices and I lost ZERO clients, gained MORE :) If you’re adding value and people are singing your praises…. they’ll pay the dollaros! :)

Great advice as always!

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Razwana

So many inspirational stories and additional Q&A’a – love it!

For someone like me just starting out in business, it is a little scary to charge what I feel I am worth (after the market research, of course) as the immediate response is ‘but what if I’m too expensive and nobody will buy??’ I guess it’s about starting out and testing, right?

Great Q&A as always, Marie. It’s why you were nominated in Danny Iny’s recent pole for an Engagement Superstar!

– Razwana

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Victoria

Marie – I rasied my prices a few months ago when I opened my own yoga studio and lost a lot of clients as a result because they were used to getting me for a very low rate (I was paid by local council and the rate my clients paid was subsidised). I am now moving the studio again and the new gym owners wants me to DROP the prices so that I am in line with the other fitness classes he does. I am so confused about what to do… Do I stick by my guns and keep my prices at the new rate? Or do I drop down by a couple of quid per person (I’m in the UK) and increase my class sizes?? In spite of price changes the quality of my work remains high!

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Vicky

Hey Victoria (same name, same country lol)- Have you thought about teaching the classes from home? I know a lady nearby me who does yoga and has her own home based studio which means she can sort of appeal to specific demographics.

If you’re sticking with the gym studio then I think it’s a good idea to have a multi-level pricing system. Charge high for one-to-one sessions and then decrease the price based on the number of people per class. You could then have a sort of bronze, silver and gold offering where silver/bronze (group classes) are the standard and are charged at the rate that the gym are requesting and then have the gold/ silver packages for those who want more personal sessions. Use the cheap group sessions as a way of up-selling and attracting high-paying one-to-one customers. That might allow you to fit in with the gym’s demands whilst increasing your earning potential.

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Lorna

Thanks Marie! I raised mine in July and am on track to double my profit this year woohoo! I encourage my clients to do the same, cheap is not always a good option as it’s seen as a lower quality of product by many people.

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Diana Dorell

Thanks Marie!
Yes, I have found that the fears WILL surface when you raise your prices. “What if I am not that good? What if no one likes me? And the killer…what if they pay my higher price and are let down? I’ve found that we need to use fear as FUEL. Fuel to remember how valuable our services (and we) are and the people you are meant to serve will find a way come hell or high water to gladly pay what you ask.

Diana Dorell
http://www.TheDancingGoddess.com
Your Go-To Goddess to stop feeling drained and start feeling like a GODDESS!

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Denise Duffield-Thomas

I changed my prices several times in 2011 and I’m quite comfortable at the moment, however, I’m putting together bigger packages and that’s been scary AND empowering!

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Honey

I raised my prices about a year ago and got more sales. I’d love to raise my base $ per hour again, but I’m having those fears again! Maybe I’ll give it a try in a couple more months!

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Kaylee Steiff

Don’t wait!! I have notice everytime I say “Oh I’ll do that next week or next month” it never gets done! If your thinking about doing it just start right now! Take a small step to raising your price like maybe editing any marketing materials that have your price on them. You don’t have to print them yet! Just do one step at a time and it becomes a lot less scary but DONT WAIT!

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Tonisha Ramona

As an Interior Stylist (Interior Designer), I can totally relate to what artist go through. Marie is right, sometimes as artist we can undervalue our work especially since we LOVE what we do and it doesn’t appear to be WORK. But I have a specialize talent in styling a persons home according to their personality and I change my clients life, and that is pretty priceless! Your prices should definitely reflect the value of your work and the added value to your clients life!

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Tonisha Ramona

Oh! Anyone know how I can add my pic to my post?
-Thx!

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Jill Rowe

gravatar.com it’ll take care of that for you!

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Amanda

Raising prices has been the best thing for my business. Not only raising my session fee, but my prints and wedding packages as well. Those who bawk at paying for good quality are not your clients anyway :)

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Darci LaRocque

Firstly, thanks Marie! I look forward to Tuesdays just because of your video’s. Awesomeness!

My company offers smartphone, tablet and Microsoft training – to individuals and businesses. When I first started I was priced ridiculously low. I didn’t really have any competitors and fortunately still don’t have many…..but another business owner gave me some sage advice, “Raise your prices” he said “you can always offer preferred rates or lower a bit if they balk but you can’t raise them once they sign”. I never looked back and though pricing is still a topic I review all the time, I loved that little nugget of info and thankfully it was early on!

Good luck to everyone out there and remember it is much to do with “perceived” value.

Darci

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Llyane

I love this idea! This is my answer right there! Phew!
Thank you so much, Darci, Love, love, love it!
Llyane

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Lisa

You are in a good position right – not many competitors. Right now, you set the bar for pricing that will stay in place for years to come. So, get those prices up!! Don’t set the bar too low. As you said, you can always offer a preferred rate or a lower package price.

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Rose C

Love, love, LOVE your vids Marie, thank you!

I actually live in the amazing community of Jackson Hole, Wyoming with September & I am lucky enough to be able to frequent her gallery often. She is the one that told me about YOU Marie, & for that I am very grateful. September is soon to be one of my newest clients, as I am an Online Marketing Consultant, specializing in the area of Social Media.

This area is HOT right now & I’m constantly evolving to make my business succeed in ways that give me the freedom of working when I like, where I like! I met with a very successful consultant in town last spring & she also gave me this recommendation. I raised my prices in June & never looked back. 1 thing though, was that for my clients that began with me at the old pricing, I told them they would always stay at that pricing. That way the client feels “special” & allows for them to continue word-of-mouthing me around town. Amazingly enough, I don’t need to advertise myself at all!

Thanks again Marie for your lovely tips.
I’m so glad September introduced me to you!

Best,
Rose Caiazzo of Rose Consulting, LLC
Connect with me on Facebook! http://www.facebook.com/roseconsulting

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Stevie

Wow! That’s so funny! I, too, live here in Jackson and I initially thought, “woah! I wonder if that’s September!” What a small world, indeed!
This subject is quite pertinent to me as a massage therapist here in the valley, as this area is completely supersaturated with bodyworkers. I have experienced a lot of resistance do to my higher prices, and most people have advised me to lower them. I have stuck to my guns as I’ve always felt that doing so lessens the value of my work, however, I am struggling to find clientele. People love my work, but always site money as the issue. What to do then?
Thanks so much for the always fab advice, Marie! I love Q&A Tuesday :)
In bliss,
Stevie

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september

hello all…
rose is a wizard when it comes to social media! i highly recommend her for anyone in need…..! she also happens to be a lot of fun and a lovely human being :)!
cheers! ~september

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Anne R.

Once people decide to raise their prices, often the difficut question becomes how to do it effectively without scaring too many people away. In the photo industry I’ve helped a lot of people get over that “scary” jump in their biz by creating a tiered pricing structure in which they can retain an “old” price for a base level of service that gets people in the door but may not offer them everything they need. This allows people to come in from a former referral price point and see opportunity to spend more to get what they want. Example: previously a photog offered everything included for $2500, but now that price point only includes limited service and no product, allowing them to make their everything collection $5000 and an out of this world package for $7500 to show clients that there’s still more service and product possible than what they went in wanting. What used to be perceived as the top price for their services is now the bottom, and the price point they need for profitability is the average mid-range for reasonable buyers. When they sell 3 of their top package, they know it’s time to raise the roof again!!

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Kimberly S

Vicky,
Thanks for your awesome comments. I too am a tutor (from canada) and struggled with my prices. I have three options and parents always choose the higher price! Lately I’ve been swamped and with school- aged students you can only tutor to a certain time in the evening. I’ve considered adding another tutor to my team, but then its hard to tell the parents they won’t be getting what they want. I too like your idea of one time condensed higher priced sessions! This might be a great solution!

Thanks Marie for this inspiring video!

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Tiia

What happens if you live in an area that isn’t willing to pay what you’re worth? Or that is not the income bracket of your target client? I seem to have the issue that no one in my area is willing to pay my ‘business’ price for something they consider a ‘hobby’. (if that makes sense) I’ve only been able to get local sales if my prices are half or more what they should be selling at retail/online. But I haven’t gotten enough online sales to make this self sustaining. Any input on how to get to my clientele would be great.

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Linda Ursin

I’m having similar issues. I’d also like to hear the answer to that. I have raised my prices online, to see if that makes a difference. With approx. one sale a month, I hope it will.

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Mandy

I’m a photographer and just looking into the pricing issue so this video was really interesting.

Should you start low and higher later or should you just go right in at the higher price?

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Anne R.

Mandy – I think an evaluation of your portfolio, market, and financial situation need to be assessed before you can make that decision since the answer is not the same for everyone based on situation. For some people I would recommend a high starting point, for others, it’s good to get in at the ground floor where making mistakes while learning and building is OK because there’s less financial risk involved. I’ve written a lot about pricing for freelance services (from a photography perspective), feel free to check out the material to help you begin your pricing process: http://photolovecat.blogspot.com/search?q=pricing

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Mandy

Thanks Anne I’ll check that out, and thanks for the advice I take all that I can get!

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Laura Hagan

OK Marie… I’m gonna do it! Raising prices this week… will report back soon ;) Hopefully with some kick-tushie news! Great stuff! Love, Laura

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pascale

another spin…

during the past few years when all the similar businesses around me were slashing prices, I held steady and firm. No, I didn’t raise prices, as there was so much buy-in to to the alleged financial collapse, but I didn’t buckle either. i definitely got some ‘feedback’ from the community about my pricing, and how it wasn’t competitve anymore. i kept reminding them that i’m not actually in competition. i offer a service which is valuable. period.

now many of the other businesses are struggling with how to get their value/profits back and i feel like I rode the wave. it was the best business decision i’ve could have made.

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Alex

I’m glad you trusted your intuition instead of what “they” said you should do!

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Alex

As usual these videos are insightful and entertaining. I would love to see Marie do a movie, it would be hilarious :)

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Marlena Torres

Ahhh! Marie! First things first! Happy Belated Birthday! I know that the contest is over, but I recorded this video for you and didn’t get a chance to quickly edit and upload it until today (biz is CRAAAAZY busy, not complaining, but adjusting!!!!), and I had to wish you a happy birthday!

Here’s the link to your birthday vid
http://www.youtube.com/watch?v=va_nyl9Zo4Q&feature=youtu.be

I upped my prices VERY recently. My first response was nausea. After that subsided, I realized that I had been undercharging for my services for the past three years I’ve been a nutritionist professionally. I am deeply committed to the transformation of women, and now my prices are beginning to reflect. My suggestion to those of you on the fence about raising prices is to give a try, and see how it feels. I didn’t realize how drained I was because I didn’t want people to feel that I was overcharging. I deliver a lot of value to my clients, and am there to support them 100%. I’m SO tired of undervaluing myself and my work!

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Purna

This could not have come at a better time, Marie! I’m just getting my business started in raw foods and natural health and was faced with the dilemma of setting prices for my coaching services, amongst other things. I wrote everything down – and when I came across one other person in my city who offers coaching, I was shocked to see her prices are so much lower! But hey, it can be good in the end – so here’s to helping people, making some mad moula, and enjoying every piece of happiness along the way! Thanks, Marie!

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Rachel E. Murray

As an independent CPT (personal trainer), CSN (sports nutritionist), and PFMA/AI (pro fitness model-actor/acronym inventor…ha!) I learned this the hard way, but quickly, thank God. I used to work for a corporate gym and when I left, my clients all came with me but I struggled to grow my clientele until I raised prices to the “competitive” going rate (about $30 more than I was charging).

While I didn’t jump $30 immediately, and I ‘grandfathered’ loyal long term clients in, all new clients got the new rates. That way I avoided hurt feelings, and “deep emotions like fear, guilt, embarrassment and a litany of self-worth issues,” because the new clients were none the wiser. Turns out, the clients I ‘grandfathered’ in at the corporate gym rates (very very low rates for training) dropped off quickly, and the clients paying the premium prices have been my most faithful and loyal clients and re-signs!

Ladies and Gentlemen, KNOW YOUR WORTH and CHARGE FOR IT!!! :)

THANKS MARIE! I heart you a lot! (oh, and I’m half way through your book and have two words for you: LIFE. CHANGING.) THANK YOU!

-RACHEL ELIZABETH

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Theresa Sheridan

I raised my prices earlier this year and within a few months had tripled my income….seriously! It does work, however now I’ve noticed a big lull in my business (website/graphic design). I don’t know if it’s the holidays or what, or perhaps I’m just suffering from a bit of burnout and not providing the value and service that I normally do, so I need to reevaluate that. I’ve provided several quotes to people and have not been awarded the work, but I do know that people shop. Interestingly enough, the people that I provided quotes to are marketing people that are constantly telling me to work with my “ideal client” so I can get what I’m worth, and then they don’t seem to want to pay it. Hmmmmm.

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anni

Love that this can be an experiment!
Just started mine right now ~ I’ll see if it makes sales go up.. ^^
Awseome stuff Marie! huge love

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Niight Wind

Hey Marie! I first have to say super cute dress and thanks for the info:) In my personal experience raising your prices works. I had gone through a period between internship and real prices and I felt like I was almost resenting patients for paying me so little, when I increased prices, I increased patients, and the amount of energy it allowed me to share with my patients.

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Adrian Segar

I was an independent IT consultant for 23 years. I’d raise my hourly rate every few years, and never lost a client. In fact, besides making more money, there was another benefit.

As a consultant, one of the biggest benefits of raising your prices is that clients respect you more. At the start of my consulting career, a CEO would think nothing of interrupting a meeting with me to answer the phone or confer with an employee. Towards the end, I’d hear “I don’t want any interruptions while I’m with Adrian “.

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Llyane

I very much agree!
I announced the raise of my prices to my clients and none of them cancelled hours with me during the holiday season.
The respect went off the roof :)

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Caroline

Hi,
I have also raised my hourly rates and fixed fees and like the comments above have not had much of a drop off except for time wasting cheap skates anyway! Feel more confident and happier too.
Thank you!

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Kait

WOW thank you so much for this! As an independent consultant, I can’t raise prices but I CAN control what products I sell. I’ve already seen an uptick and sales by making a few switches and highlighting the features of our higher end products. Thank you.

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Barbara

Another great piece of advice, Marie. I rather hung back from raising my prices but when I did, I didn’t lose clients, in fact when I mentioned I was about to raise my price, one client insisted on paying me the new figure before I had actually put it in place! Woohoo.
Fly!
Barbara

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Mary Collins

Great video! I’ve raised my prices several times and I’ve always been glad I did. The first time I was advertising on google and found I sold more once I raised my prices. I’ve had that nausea from fear about doing it, but mostly I feel relief after I raise them. On Etsy, where my site is, and at craft fairs, there can be a race to the bottom on prices – especially with quilted stuff like I make. I’ve started to look at the range of prices of similar stuff on Etsy & always try to position myself at the top of it or slightly higher.

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Alicia

Really needed this video. I have been told on more than one occassion that I need to raise the price of my jewelry. I am now seeing “reality TV” stars come out with jewelry lines buying from the same vendors and charghing 5x what I do.

Thanks great food for thought.

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Jeramiah Townsend

I suffer from these issues all the time. I have too much work. I’m struggling to get it all done. I’m literally AFRAID of going into town because each time I do I end up selling another project. I can’t outsource myself. If i’m not careful I will kill myself with work.

I keep raising my prices every year. And I’m still busy. I wrote about this on my blog (http://townsendcreations.com/marketing/raising-prices-is-good-business/).

But I’m still booked solid.

Maybe it’s time to raise prices again.

Jeramiah

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Camille

Every time I’ve run into a major problem with my business – burnout, lack of time, even lack of respect from clients – I’ve raised my prices. Typically, I double my rate (and I started at $40/hr). That leaves me time to focus instead of scrambling to find another client, or keep an unhealthy client relationship going because I need money. Instead, I am able to vet my clients more carefully than they vet me, I am able to use the full scope of my talents and really make a difference instead of bouncing from gig to gig. I’ve raised my price 3 times in the past year that I’ve had a business.
1. One client agreed to the price, then wanted to “negotiate down” after the work was finished – so I doubled my price
2. One client fired me, then rehired me a month later – I doubled my price
3. One client was rude and unanppreciative to my support staff, after I’d held their hands through a potentially business-ending disaster. – I doubled my rate.

I find that having a higher rate, especially as a solo-preneur shows me how serious my client is and also indicates to them how serious I am. At this point, they are investing in their business when they bring me in and I am at ease to really deliver for them without distraction or compunction. I communicate better because I value their decision to invest. It makes everything better.

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Linda Mariano

Yes, I am in that place. A quality problem,but still stress producing. But this time is different than prior times. I have more business and less time.But still see the long term value in some of my lower priced clients i am a busy in demand hair color expert with a strong internet presence. I have always offered way more in use value. But I am not getting any younger and my job has its physical demands. Time to really restructure.

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Aradia

I know how pricing can be such a pickle. I had issues on both sides of the fence and my personal war going on with myself. For me I am primarily a fiber artist so most of my work is just extremely labor intensive. It astounds most people how long it actually takes to make something from scratch too!

I had people telling me I was priced too low and I heard it enough times that I decided I needed to take it to heart and really think about it. On the other hand I had people who thought I was charging too much as my lower rates. Now I’ll get real with you guys, the people who thought I was too high also had no understand of how I do what I do or how much work it takes (or supplies etc) it takes to make a finished product. They also worked with different mediums than I did so use that frame as a comparison. It took me awhile to disengage from that frame of thought, but finally I realized, “Hey this person isn’t even really a customer of mine, so why am I even listening to them?!”

Funnily enough since I raised my prices (just a bit) I haven’t gotten less sales at all. I’ve gotten more. Now to be fair I also did a photography overhaul, and have been working on the product description copy and developing my unique voice as well. And since I’ve maintained and even increased my sales on a month to month basis I have more confidence to move forward with developing new offerings! :D

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Santiago

Holy crap this is inspiring to me as a beauty / pinup portrait artist.

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Sid Kassidy

Awesome Marie I will implement that!
But the thing is I really don’t know how much I should raise!
Do you have a testing strategy? I’m not sure about exemple raising to the double or triple just to see and then taking them down to + 1/2. How would people react to price fluctuation? How to test without looking like a yoyo? Thanks!

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Brianna Nash

Oh my word.. I had my ear buds in and went to a different webpage for just a sec and had the S**T scared out of me by the horse sounds! Totally thought something was going on in my house! Ha!

Loved the video. Thanks a mil Marie!

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