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How to Raise Prices

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Have you ever felt that it was time to raise your prices, but held back due to fear?

Maybe you imagine that if you raise your prices, your clients will stop buying from you or worse, you’ll go out of business altogether.

Figuring out how much you should charge as well as knowing whether or not you should raise your prices are important topics we’ve touched on before.

But as you know, pricing is a multifaceted and often complex issue that can change with each industry. Which is exactly why we’re diving back into pricing on today’s episode of MarieTV with my dear friend and personal finance expert, Ramit Sethi.

One of my favorite parts of this video is the classy and highly persuasive word-for-word script Ramit’s shares that you can use to raise your prices in a way that creates a win-win scenario for you and for you clients.

What I love the most though, is how raising prices using this approach forces us as entrepreneurs to deliver more value and articulate how we’ll do that now, and in the future.

Get ready to take a lot of notes, click play and enjoy!

The key to charging more is knowing how to properly convey your value. @Ramit via @MarieForleo

Remember, insight without action is worthless. So let’s get into action together in the comments below.

You’ve got options based on your level of experience and, of course, what’s most relevant to you. Even if you don’t own a business, this strategy is highly transferrable to negotiating a raise, so feel free to share based on where you’re at.

Let me know:

1. Have you ever raised your prices? How did you do it and what happened?

2. Challenge yourself and write 3 or 4 sentences below about what you could say to your clients to raise your prices right now. Describe the massive value you do and will deliver that will make them happy to pay you more.

I’m really excited to see what you come up with!

P.S. RHH LIVE update: we’re now 85% sold out of tickets and the event is still two months away! Come join us, we’d love to meet you in person.

Love,

Marie Forleo

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Read the comments or Add yours

Aziza

The timing of this video couldn’t have been more timely as I have to raise my prices next week! Since I mostly make customized jewelry I have been fearful of raising prices thinking there’s so many people who do what I do. After watching this video, I realized noone quite makes personalized jewelry like I do and that my value is greater than I realized. Thanks Marie!

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Chas

Out of curiosity, Aziza, do you belong to pinterest, or it’s competitor, theFancy(based in New York)? They seem like a natural fit for your type of business.

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Aziza

Hey Chas! Yes, I belong to Pinterest but by golly, I can’t seem to figure out how best to use it for my jewelry without just posting images of my work over and over, lol. I have never heard of the Fancy though, thanks for the recommendation- going to check it out now! ;)

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gina

I am a pinterest addict and businesses on there ( and also koyal wholesale has really caught my eye on instagram ) that flip me to a customer do this: they show me the life I want to live, event I want to create for a client , outfit I want to wear etc. So my advice would be to create pin boards of things that interest you / would interest your ideal client. I haven’t seen your website so I am going blind here but customized jewelry makes me think of moms- pin boards full of baby items, family photo session tips, party ideas etc. I would be drawn to the style you are conveying, if it were similar to mine and therefore go
looking to see what you sell with the preconceived notion that it was my style and something I will want! Another example/ artsy jewelry- pinboards of art that speaks to me, creative clothes that express myself, art projects to do, cool decor etc. Do you get what I mean?

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Camila

This is very good advice, Missy. I’ll be applying it to my Pinterest page (which I have kind of abandoned of late) to help sell my colourful tableware.

Aziza

That is in fact great advice Gina! Thank you for the wonderful insight :)

Ameena Falchetto

Hey Aziza!

Your jewelry is beautiful! Well done you for realising that what you do is awesome, special and totally deserving of a higher price tag!

It’s easy to fall into the trap of thinking that there are so many others doing the same thing – that’s not true – no one does it YOUR way – at the end of the day no one can be a better version of you!

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Aziza

Thanks so much Ameena- love your name, btw :)

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jenny k

Just checked out your jewelry, it’s beautiful are you on Twitter too? send love from the UK x

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Aziza

Thanks so much Jenny! Yes, I’m @azizajewelry on Twitter. I’m on Facebook too- http://www.facebook.com/AzizaJewelryonFB and I’m currently running a jewelry giveaway on my facebook page :)- it ends tonight at midnight EST.

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Deb A.

Gorgeous jewelry, Aziza! I also have an Etsy shop ( http://michemozaix.etsy.com )and handcraft jewelry using a process that’s totally unique. It’s been tough to raise prices (although I desperately need to!) since there’s no one else making similar jewelry for me to compare my work to. Anyway, I guess this video applies to those of us with products just as much as those with services. Wishing you continued success (and more cash due to higher prices)! Deb A.

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Aziza

Deb- what wonderful work you have! I also used to make ceramic beads and jewelry- it was a challenge to market and sell but what I did was to play around with the tags and key description words – you may want to try it and see what happens. Best of luck!

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Kirk

Aziza,

Beautiful jewelry and great photos! It’s so good to see a small business person understand the power of great photography! Everyone with a website: TAKE NOTE! This is great stuff.

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Aziza

Thanks so much Kirk- I am constantly refining my photography- its come a long way!!

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Christina

Checked out your jewelery, LOVED it! There’s a few peices I’ll be getting for Christmas for a few people (and I think Santa might get those swirl earings…. shhh…) =) You GO GIRL!

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gina

I looked at your site today and I think you SHOULD raise your prices, but add value. Your multi stoned gold filled necklace explains what gold filled and states it could last if you take care of it right. Then it doesn’t what that process is. Does the necklace COME WITH care instructions, it should and it should say that! Also the care cloth? INCLUDE that with all purchases and then raise the price on the a la carte on too!!! I would then see the VALUE of using that cloth, be excited its included with purchase and come back to YOUR site when I need another one because I will feel that is the way to protect my jewelry investment. And even if you never sell another single care cloth, you will be selling: the jewelry for way more because of it!!!

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Cecilia

I for one, would love to see Ramit dance, he’s got the socks to do it after all.

Ooh, price raising. It’s something I keep on trying to do and then I chicken out. I’ve even gone so far as to put new prices on my website, but then end up discounting once I talk to the clients. They don’t even have to ask for it, I’m already doing it for them. I know that this is something that I seriously need to work on.

On the other side of things, I’ve convinced people I’ve hired that they need to raise their prices. Even though my bank account enjoyed paying less, it just hurts to see amazing women undercharge for their services.

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Marie Forleo

Hi Cecilia, I’d suggest you set a new standard for yourself NOW. No more discounting woman. :)

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Cecilia

Thank you Marie! No more discounting! I pinkie swear it. Discounting, it’s a disease… :)

Looking forward to seeing you at RHH Live! :) I got my ticket on the first day.

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Amber Goodenough

I LOVE this! Convey your value! Thanks for all the helpful tools and scripts. I had a vendor raise prices on me recently and although it hurt a bit, we have had a great relationship and I don’t mind paying a little more because I know how valuable they are.
Charging more is just part of being a business owner. And like you said, if you are really delivering above and beyond your clients expectations…there is no reason not to get paid what you are worth.
When I get ready to raise prices, I’ll have to re-watch this video to make sure I do it right! Thanks again for great stuff.

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Marie Forleo

You are so welcome Amber and thanks for sharing about how you feel about a vendor raising prices. Sounds like the value they provide as well as your solid relationship is vital. Great stuff!

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Elise

I haven’t yet started charging for anything on my business yet (working on building a vibrant community first), but I have been thinking about what’s going to happen when I do start charging for my products.

I gotta admit, it has me a lil’ nervous!

But I love what Ramit says about telling them what you did, what your giving and why they’re gonna benefit from it.

I love that honesty and realness, no fooling about it whatsoever. So I believe right now that I will do something very similar along the lines of what Ramit said above.

Thanks so much for this wonderful vid Marie and Ramit!

Elise x

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Suzie

Elise I’m loving your website and how you found your way…Fabulous.. You are an inspiration!

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Elise

Aw, thank you hun!

I love your avatar! It looks so vibrant!

I’ve just had a browse around on your website and I already know several people I am going to recommend it to who are obsessed with skin and beauty!

Elise xx

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Suzie

My avatar was taken by my beautiful daughter
You’re a champ! thanks

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Nige

Hi Elise,

Your website looks funky Elise. I love it that you are helping people realise their dreams. Woah! I wrote a post recently that I want to share with you.

http://nige-atkinson.co.uk/the-sentence-that-changed-my-life/

Hope you like it,

Nige:-)

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Nige

Hi Elise,

I fully understand how charging for products could have you feeling a little nervous. In my experience Its like exercising a new muscle. It feels weak at first but grows stronger with practice. Recently, I increased my prices. My biggest fear was that I would be rejected by potential clients but I have since discovered that people respect me more for charging what I am worth.
I encourage you to jump Elise and build your wings on the way down. Its safe to let go.

Nige x

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Elise

Nige, thank you for your kind words of wisdom. I take it all gratefully :)

And for your post recommendation, Amazing. You are a walking success story! I may just have to interview you one day! ;)

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Suzie

Thanks Ramit for your time even though you don’t want to dance…go on you can do it!!!

Speaking from experience of raising prices, our beauty/hair salon needed to increase prices, some prices by $1-2 others $5-15. We decide to talk to each client personally prior to starting there treatment. Offering them the same pice for this treatment and pointing out which prices effected them in the futrue, we explained how we’d been looking around for a cheaper product to do the same job but we weren’t happy with the cheaper products, so after much deliberation we kept the quality product and put the prices up. In turn we offered them better magazines to read, yummy cookies and longer head massages each time they visited.

When we let our clients know, most where not perturbed at all, they didn’t care but a few where ah ah out raged….In hindsight… They were the ones who complained a lot about everything. Unbeknown to us at the time we have gained a lot more clients though our regulars who we love! The new clients come through of word of mouth and the service we provide not the prices that was two years ago and we have weathered the storm of a very quiet winter and now thing are starting to boom!

Thanks Marie & Ramit
I like the idea of reinstate what you are going to do for them over the next 3-6-months and planning it out. I feel like I’m in high school doing homework…love it!

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Elise

Suzie, that is such a great display of giving massive value to your customers!

I just LOVE that you decided to improve the little things because after a while it makes a HUGE difference!

Already I could feel myself getting excited about coming to your salon because of the cookies and long head massage!

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Suzie

Thanks Elise, yes the little things do make a big difference and you are welcome any time for cookies and a long head massage!

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Robyn Keet

Wow girl you defiantly know how to plan your video as I need them.

I will be opening a new service to my business in the next couple of months called Social Learning for university students that are studying psychology at the University of South Africa (UNISA). As UNISA is a correspondence only university I have found that student including myself are helpless when it comes to really excelling in this subject as there is little to no support offered. This semester I have tried out my business model for free with great success. (The fruit is in the marks)

As from next year I will be charging for this service. I have been feeling really guilty in charging for this service even if my fee is lower than the industry standards. We will be offering a study community for each module under the discipline of psychology as well as assisting students to practice their new skills in the real world but partnering with some amazing organizations even before their practical year arrives.

So from this video I will be writing down the script and emailing it to my students that are currently studying with me. My aim is not to make me rich but rather to see my fellow students excelling in their specialty.

What do you think?

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Clare J Fitzgerald

Hey Robyn

I think your service sounds amazing.

I have two sons currently studying at University of SA (Sth Australia!) and they have often struggled to find help for particularly difficult subjects.

I think the service you are offering sounds great, but where you really had me was the added bonus of working with partner organisations to get real world experience.

To me, getting real work experience is an opportunity very few students get so I would see a product offering all of this as more a premium product.

Therefore I would see this as a product you should charge MORE for, not less :)

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Robyn Keet

Wow, thank you so much Clare. I will differently look at making a sliding scale offering with different products and values added benefits. Our platform is online so anyone around the world can join in. The work experience might be a little tricky for those outside South Africa but can be done.

If you would like pop me an email(robyn@livinglite.co.za) and I will send you details for other modules that organizations are covering for your sons. We all need all the help we can get.

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Marie Forleo

I love this dialog and Robyn, great work. You can charge a fair value that is ideal for your clients and you. Remember that you can also build scholarships, philanthropy and free content into your business model. This allows you to have a profitable, sustainable business as well as serve all the communities you want to serve!

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Robyn Keet

Thanks for expanding my ideas Marie. I haven’t thought of scholarships and philanthrophy. I will try work that in. I have send a short survey to my students today and they have come back with some pretty amazing stuff. After I explained my plans they were happy to pay more than I was expecting to charge. Now as an extra benefits I will need to work on some great tools for them when we open in November.

I also think its all about having confidence in your business, services and yourself. Never sell yourself short and have the conversation. My problem was I was too scared to have the conversation but boy am I happy I had.

Clare J Fitzgerald

Hey Marie,

Do you think if we started a petition here on MarieForleo.com where people signed up to get Ramit to dance bomb his loyal viewers he would do it if we got enough people sign up?

If so, I’ll be the first to sign :).

Anyone else up for signing up for a Ramit Dance Bomb?

Such a great subject today that often brings up all our fears about our worth and the value we bring to our readers and customers.

The answer Ramit provided was simple – make sure you point out the value you already bring and then tell your customers (current and future) that you are planning on adding even more value so that they are blow away by what you add to their lives and their business.

What that means to me right now is making sure that I am always striving to be the best at what I do – to provide great insights and massive value for my customers.

I also need to pay attention to my marketing and make sure that I know the needs, wants, fears and dreams of my customers to greater and greater depths so I can constantly lift my game and meet their needs in unexpected ways.

If I do all of these things, then I can feel more comfortable that my services are worth paying a higher price for.

So my job today is to email my customers as Ramit suggested, to see what value I have provided them in the past and what they are looking for in the future so I can tailor my offerings to meet and even exceed their expectations in the future.

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Suzie

I’ll sign the Ramit Dance Bomb petition Clare! Would love to see that

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Clare J Fitzgerald

Thanks Suzie.

Come on MF community – lets get this petition rockin!

PS Suzie – Love your site and I really like your business philosophy too.

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Elise

*signed*

:D

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Suzie

Thanks Clare, I’m getting there, the best part is I do love what I do.

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Marie Forleo

LOL! I’ll let you guys in on a little secret. I HAVE seen Ramit dance and I made him do a little dance on stage at a past RHH Live event. He’s got some moves ladies :)

Deb A.

Dance Ramit! DANCE!! Woo-Hoo!

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Clare J Fitzgerald

Rockin Ramit!!

Think I’d better dance now

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Ameena Falchetto

Awesome stuff Marie and Ramit! This is a topic I am incredibly passionate about – all too often people are too scared to charge more.

Personally I’ve helped turn a few struggling businesses into money making machines in a matter of weeks by substantially raising their prices. One company was struggling to sell an amazing coaching adventure retreat at the lower price – the price tag was actually too low and didn’t reflect the awesomeness of the retreat. After careful repackaging, breaking it down into different packages and tripling the price the retreat was sold out in less than a week, the extra retreat did the same and there was a huge waiting list.

All that changed was how the VALUE was communicated and how the pricing was applied accordingly.

If your prices are too low for something that is so delicious and valuable people get suspicious – we all like spending a bit more (if it’s deserving of a higher price tag – and it usually is) as long as the value is conveyed!

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sigmundo

huge item. i’m totally confused about prizing at my new giggl-guide-project (a coaching approach), started with a monthly flatrate of 66,-, put it up to 666,- (euros) and now give it away for free, see what happens, maybe it can grow as a network (of happiness guides). very low response so far, even though i put a dance-video on the site…
thx°sig

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Linda Ursin

Thanks for this video. I raised my art prices recently, to better reflect the amount of work I put in. I haven’t seen the effects yet, as this was such a short while ago. As for the sentences, I’ll have to pass, because my arms in a sling.

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Marie Forleo

Sending you healing vibes Linda!

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Linda Ursin

Thanks Marie :)

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Zaid S

Hi Marie

Great video with Ramit. Their were some golden nuggets that made me rethink on pricing and what to focus on.

Scripting is something I will look into, that script was really powerfully..

Looking forward to your next videos…

Take Care

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Marie Forleo

Awesome Zaid! Glad it helped.

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Stacey

Great information. However, do you have any tips for raising prices for not a service business but a retail business? I have an online custom stationery/gift business. I have raised by prices a few times over the years, but plan to make a significant price increase soon. A concern I have is for the clients who have been around for a number of years and have gotten comfortable with my lower prices. I need to raise the prices for various reasons. One colleague suggested that I send certain long-term, loyal customers a promo code that is good for a year that would essentially give those customers something close to older pricing. Any other suggestions on how to handle this situation?

Thank you.

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Elloa

Stacey,

Your reply got me really worked up – please, please don’t offer your customers a promo code that’s good for a YEAR!

I recently sought advice from some of Marie’s B-School babes (women who have taken Marie’s amazing B-School) about my pricing, and they said something so valuable to me: DO NOT DISCOUNT. Offer MORE value, give away bonus products, offer a loyalty scheme, go the extra miles in other ways, but don’t raise your prices and exempt your customers for a year.

I used to be a stationery and gift buyer, and remember the anxiety that came from raising prices. I encourage you to read the other women’s amazing stories on this page, clearly and confidently COMMUNICATE with your customers about why you need to raise your prices (they will understand! It’s clear that the raw cost of producing beautiful stationery goes up year on year – what makes you different is the customised nature of your product.

Perhaps you could give them a free $20 voucher if they spend over $50 as a goodwill gesture, (adjust the values according to your situation). If you don’t take the plunge and include your loyal customers in your price raise, will you honestly feel comfortable continuing to serve them? Think beyond the transition to six/nine months in the future. And bear in mind: these customers will have had to face rising food costs, petrol/gas costs, and a host of other living and luxury costs in the years they’ve been ‘comfortable’ buying at this price from you.

I am going to be raising my prices (see below) and I understand how scary this feels, but I urge you to really think through what is going to work for YOU as well as be OK for your customer.

Sorry for all the shouting but I feel really passionate about this!

Elloa xx

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Stacey

Hi Elloa:
Thank you so much for replying to my post. I appreciate your very helpful comments/advice. And, I definitely appreciate your passion! I am going to raise my prices as part of a relaunch that includes a new website, blog and new products and designs. Your comment about whether or not I will continue to feel comfortable serving them is right on point. It does negatively impact my attitude when the same customers constantly balk about pricing and at the same time ask that I do more and more to fill their orders.

Stacey

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Elloa

I read another post that talked about the price sensitive customers being the ones who also “coincidentally” caused the most hassle. Interesting, huh?!

As for me, I have just had another very promising enquiry. Question is, what price do I quote???

Good luck and let us know how it goes with your decision – I would love to hear!

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gina

I am not yet at the point of having a business model website- still just showing work on a casual blog setting. I love what you say about discount codes as I recently wondered what would generate a better advertising response – giving a % off or adding one complimentary a la carte menu item to their event. Of course after watching this video I am feeling NEITHER- that I should invest in a great website and simply SHOW them why they should book with me at the prices I charge – the old if you build it they will come sort of approach. I have been feeling anyways like offering a cold discount code sort of feels like apologizing for asking them to even check me out/book me. Like I don’t even feel my value is worth the prices I charge…

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Sonya

Loved this episode of Marie and Ramit Tv! I haven’t got a project up yet for sale but working on it now. I really saw the whole pricing thing in a totally different light after listening to what you both shared today. It is all about conveying what you are actually doing for your clients and making you accountable and a better version of yourself too.
Great Stuff guys and come on Ramit….do a little dance, shake your bootie…

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Marie Forleo

Hey Sonya! So glad it helped. Read a few comments up. Ramit def. has some moves :)

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Johanna

Heeeeyyy Marie! G’morning.

I haven’t raised my rates – YET – but know that it’s something I need to do in the near future. I’m feeling good and comfortable with where I am now, but I do feel a rate raise in my near future.

When that time comes, I will be writing out a script, following Ramit’s guidance and then rolling out my rate raise.

I love how you have been juggling things up with your videos. As always, keep ‘em coming.
xo Johanna

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Robin Hallett

Thanks Marie and Ramit,

This is such an important topic!

What we’re offering the world is an excellent service that honors our true nature shines our unique light that no one else can shine.

When we feel really good about what we are bringing forth in the world, we can feel really good about what we are charging for that as well. Remember, no one else can do it like we do.

So what we offer is an excellent service for an excellent pay.

Thanks!
Robin

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Caroline White

Yes! I couldn’t wait to open this one. One of the biggest things that has allowed my to raise the amount of INVESTMENT (notice I don’t say rates or prices) my clients make with me is STORIES.

For example, a woman named Leila commissioned me to take some casual and somewhat candid family photos at her vacation home as the sun was setting. I captured some beautiful photos of Leila’s 20 month old daughter – laughing and connecting with Grandma in the golden magic hour, as Leila looked on filled with joy. Afterwords, Leila started to cry as she told me how much these images meant to her – because her own mother had not been able to bond with her during her pregnancy, nor with the baby during those first months as a new momma – as she had so hoped and dreamed about – because Leila’s mother was going through chemo for breast cancer. Leila’s mom was also notorious apparently for avoiding the camera, or not smiling in photos.

By using stories and truly valuing what I do, I do lose some clients – but I only lose the ones that don’t really value what I do. Essentially, I end up making more money AND being more fulfilled and appreciated. <3

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Suzie

Well said Caroline, it’s true you do lose some clients but that’s ok it’s all worth it at the end of the day. Just dropped by your website…OMG your photos are beautiful, can you come for a holiday to Sydney and take some shots for me. You capture beautiful moments!

Suzie ;}

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Caroline White

Suzie! Thank you so much – I actually JUST announced I am coming to London, Paris, Sydney and even PERTH in 2013…Have never been to Australia or France – have always dreamed of living in Perth for some strange reason. Are you on my list so you can be kept in the loop of the travels? <3

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Sabrina at MyMiBoSo

Gorgeous Caroline, I LOVE this story as an affirmation of the work you do and the VALUE you provide!

I check in with my clients often to help them connect the amazing strides they’ve made (as it’s so easy to forget sometimes), and your “storytelling” approach really resonates with this former storyteller turned coach :).

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Caroline White

Sabrina! Thank You so much you lovely lady!! There is no doubt in my mind that your clients adore you as well – it’s why we do what we do right sistah?? ;)

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Marama

Caroline, stories are a wonderful way of conveying your value I think. And a great story like that is fabulous. I mean photography is all about capturing the moments!

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Caroline White

Hey Marama! So glad you agree and Thank You. Stories are all about experience and connecting, as is photography, so it all fits together perfectly – and I guess that is a big part of why I do what I do – so I can connect with people, have a shared experience, and give them beautiful images out of that experience and that memory, that they can treasure and/or use for many years… :)

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Mrs. Brad

Dance, Ramit! Dance!

He has great stuff that everyone should read.

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Senay Johnson

Another great episode of MarieTV! I love how we’ve actually got to look at the value we bring in order to get into the comfort level of asking for what you’re worth. I believe it’s a common problem amongst us women, but personally and professionally.

Marie Forleo, you rock!

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Marie Forleo

Why thank you Senay – so glad it helped.

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Delaine

Talk about timing!!! I mailed out letters yesterday enforcing full price on our of my clients who were grandfathered into past pricing. They will be receiving letters today that explain why. (our trainers continuing education, etc..) Than you for this!

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Nige

Top episode,

The subject of raising prices used to terrify me but I keep forcing myself to go out on a limb and its getting easier. I still have a little way to go before I am completely comfortable charging the big bucks but these dinky steps are really helpful.

Nige

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Elloa

Nige! You beat me to it in replying!

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Vanessa

I love you Ramit!!

The value I can add to my client’s life…

To my clients… after working with me…
1) You will jump out of bed in the morning bursting with energy!
2) You will have a new healthy relationship with food
3) You will whip up kick-ass meals for your family in minutes (and they won’t even know that the food is good for them!!)

xo
Vanessa

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Marie Forleo

Hey Vanessa,

Thanks for replying. I’m going to challenge you to be even more specific.
For example, number 3 could be something like this,

“Within the next 90 days, you’ll get a collection of 30 personalized recipes for healthy meals you can create in 30 minutes or less. This custom recipe book (with the foods and flavors you most enjoy) will help you and your family save time and stay healthy while enjoying delicious food.”

See the difference?

I’d love to see you get more concrete and specific with each sentence. GO!

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Natasha, a.k.a. Systems Chick

How funny! I was just working on such a list. Here is what it’s going to be:

• You’ll spend your day in your ‘zone of genius’ instead of running around with a fire extinguisher, putting out the flames of poor planning and preparation
• You’ll bring in more money than ever, while enjoying plenty of free time with your loved ones— and even getting some ‘me’ time (massage, anyone?)
• You’ll feel relaxed, energized, focused, and clear about what needs to get done— even if you’re in the middle of a big launch and ‘anxiety’ has always been your middle name (after all, you’ll have a crackerjack team who’s ON it!)

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Marie Forleo

Hey Natasha! Read what I wrote above to Vanessa and play with getting even more concrete and specific.

Give it a try.

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Sylvia Adams

This is such a great video. I had a problem for years with raising my prices as a solopreneur and even asking for a raise, when I worked for others. In the beginning I would just raise them with the next client. This was mainly just out of fear.

If you simply SHOW them where the money is going – by detailing how your service is being used and the actual value of that service (put a dollar value on it). You will get it.

By showing how much time or money they will save or how they will benefit from it – it shows that you have really put some time into their problems and you have found solutions.

I have to admit that once I got up the nerve to actually ASK for my money – I never actually had someone say no – ever!

I thought I was the biggest chump! How much money have I been missing out on out of fear.

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Gemma W.

So basically what I’ve got from this video is, when I’m freelancing as a web designer, I need to get to know my client’s business, so that I can measure the impact the new website has on their business (time and sales). I’m just not sure local businesses will appreciate me having that level of knowledge, because where I live, we’re like 10 years behind the rest of the UK. Any ideas on how I can overcome that?

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Elloa

Gemma,

Can you flip your situation – make it an advantage that you’re ten years behind the UK, and explain exactly what you can offer your customers that is at the absolute cutting edge of your industry and your country?

Elloa

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Marie Forleo

I agree with Elloa Gemma. This is all about positioning and being a leader. It’s about approaching your clients with a genuine sense of caring about them and wanting to see them excel and reach their dreams. When you come from a place of service and caring, business owners appreciate that! You can also make it very clear that any information they provide is strictly confidential and offer to sign an NDA (non-disclosure agreement) to protect them.

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Gemma W.

Elloa and Marie,

Thank you for your responses. I can see now how I need to position myself, and I’ve got a couple of ideas to get me started.

Great episode by the way. ;-)

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Elloa

Marie and Ramit,

I naughtily watched this while walking along the road this morning (was SO not present to my surroundings but I couldn’t not watch; this was such an amazing episode!). I was literally exclaiming things out loud in excitement at what you were discussing.

Ramit, your script is incredible. And I would love to see you dance!

I started my business (teaching English on Skype and face to face) at the start of the year, and really took a risk in naming my price: £40 an hour. A lot of language teachers offer lessons for £15, so I knew I risked being turned down. My first client replied (and I remember the exact wording to this day), that ’40 GBP is ok’. Woo!

Almost nine months on, I am learning so much from Marie about the value I offer, and I really do go the extra mile, both in and outside of the lessons. The client’s individual needs are at the heart of what I do, and I am starting to see that I actually need to charge more – possibly quite a lot more – for my service.

I’m in the process of completing B-School and building a website. I made a video which seemed to really touch people last week, and I know that the value of what I offer can’t be easily quantified, but it has to do with people waking up to their purpose, their extraordinariness, and opening the doorway to making learning English an exciting, unmissable adventure.

How do you put a number on that? Any advice welcome. I’m aware that some English teachers charge literally thousands, for a super premium service, whilst others are at the bargain basement end. I’m committed to helping my clients, and for me that means working with fewer, so that each one can get the best of me. Perhaps I can work with that and see where the numbers come into it.

Rock on,
Elloa xx

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Amber

Ramit rocks and your *hair* looks absolutely fabulous in this episode, Marie!

The tips in this video are so actionable and spot on.

I constantly revaluate my prices. I raised them again about 1.5-2 years ago after some coaching from you, Marie, around charging what you are worth. Only one person asked “How did you set your prices? They seem high.” She had worked with someone whose prices were way low for the industry.

I gave her examples of people that charge more than me and people that charge less. I explained that it is all about the value we deliver and the value our clients receive – siting key examples.

The conversation instantly turned and she ended up complimenting our work and completely “got it.”

At the same time, I also adjust prices (up and down) to get the right mix.

Having the right mix of products and presenting pricing in the right way can also have an impact on decision making processes.

Here’s a good article on that topic, which I recently came across: http://conversionxl.com/pricing-experiments-you-might-not-know-but-can-learn-from/

xo

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Megan

I know I need to raise my prices. I haven’t been consistently demonstating value (altough I have been providing the value), and this script is a great place to start. Thanks for the ideas!

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Kimberly Houston

Great exercise/challenge Marie and Ramit!

OK, this is long, but here goes . . .

1. I haven’t raised my rates yet, but need to do so with one client (a realtor, in fact!) who I took on when I first started offering social
media marketing to my existing freelance writing clients. She has been a writing client of mine for a while, and so when I started managing her social media, I charged her the same as I charge for writing, because it seemed the easiest thing to do at the time.

2. Here’s what I’m mulling over saying to her: M, as we’ve worked together the last two years, I’ve gotten to know your business
intimately, spending time on my own reading about and studying the real estate industry, attending webinars on social media marketing as it specifically relates to the real estate industry, and planning other strategic ways I can increase your presence on social media to help you achieve your stated goal of increased traffic to your website. As you know, I’m self-directed and don’t need supervision, which you’ve said is a huge benefit to you as you’re so busy working with clients. You recently said that your web traffic had increased by __ % and that you felt that was partly a result of my actions. I’ve checked our Google Analytics account to get precise numbers and here’s what I found — since I took over your managing your social media presence, we’ve seen an __ % increase in Facebook fans and Twitter followers, we’ve gotten consistently higher engagement on both platforms, and web traffic has increased by __ % as a direct result of what I’ve done there. Now that we have a solid system in place for the day-to-day management of our
3-4 main social media platforms, I’d like to launch some other, higher-level initiatives: upping the number of email newsletter sign-ups
by doing x and y and z (add specifics here), launching a press relations campaign as we previously discussed, and finally, writing an ebook to offer to your email subscribers so that you are seen as the go-to resource in your niche, as we also previously discussed.

Taking into account the success we’ve achieved to date as a result of my social media work for you, and the value these 3 higher-level initiatives will bring to your business, I feel it would be an appropriate time to raise my rates from where they have been for the last two years. I will be rolling out this rate increase within the next 60 days. We can set up a time to discuss this and any questions or concerns you may have at your convenience.

Wow, I’ve needed to get that in writing for a while now, and now that I have something down, I just need to tweak it and get it to my client. Thanks again for the kick in the pants! : )

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Marie Forleo

NICE work Kimberly! I’d suggest tweaking that line about “I feel it would be appropriate.” Play with language that’s more direct and clear. Watch the episode again and pay close attention to how Ramit positioned the wording around the increase. Again, GREAT work!

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Mikita ~ Kisabird Studios

LOVE IT!

With one tweak: (change the “I feel” statement to a more active, strong position of “I am”).

Taking into account the success we’ve achieved to date as a result of my social media work for you, and the value these 3 higher-level initiatives will bring to your business, I will be raising my rate from $__ to $___ effective October 1, 2012. I’m happy to answer any questions you may have.

I’ve enjoyed working together thus far and am looking forward to our shared success in the next year.

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Anne

Hi marie,
Loved the video!
i sell homemade cakes in my shop for 1,50 a slice and handmade aprons for around 16 euros. i live in a small village in France where people don’t have a lot of money. I would like to raise my prices, cause I work about 14 hours a day. i love what I do, but how can I raise them? i don’t feel that the script is working for product based stuff like mine. Any ideas???
I already went thru B-school, so it’s not like I’m ignorant.
Please keep posting your great videos, they inspire me!!!!

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Victoria

Hi Anne,
I run a product based business as well as a service based one so I can definitely relate to what you’re going through. With products it can be harder to convey value but sometimes the value we create is so much more than we realise!

The first thing is what do people compliment your products on? Do they say it smells great, tastes fab, is healthy yet delicious? On your website/marketing materials- convey the value that the cakes and aprons convey. The aprons are handmade so talk about the process that goes into hand making them- do you spend 2 days creating each apron? Do you hand stitch each apron to perfection? Use language that creates a feeling of luxury and express the value.

The second this is about people not being able to afford your stuff in your area. I can relate to that because I also have a tutoring business and have some wealthy and some not-so wealthy clients. I know that it’s hard to sell in an area that’s deprived or struggling.

But one thing you can definitely do is sell your aprons online! Yes, people in your area might not be able to afford the cakes/aprons but there are people across the country and the world who can. Are there any ways you can sell on a wider scale? Finally, you can create an affordable range for local customers- perhaps some cheaper cakes that are less expensive? Or even a cupcake making class where you can have several people in the class at a time and make more money?

Hope these ideas help. Best of luck!

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Marie Forleo

Excellent Victoria. You are a shining example of why I LOVE our community. Wise, generous and positive. Thank you for being here ;)

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Roni

Loved this!

1. I am still setting prices before my product launch and have gone back and forth between how to position my product (buy-one-give- one handmade Cambodian scarves).

2. Settling on my prices was hard–since my friends and family are not necessarily in my demographic, they question the price range because they mostly shop for “bang for the buck”. But my very true reasoning for the “raised” prices is along the lines of “the prices are set they way they are for a couple of reasons: each scarf is carefully handmade and the quality is top notch. Other brands sell scarves at this price point and often higher that were pumped out of a factory. These are made with careful attention by women whose livelihood you ate supporting. These prices will also allow for the business to expand and help more artisans around the world”

One sort of related follow up question for you ladies:
How do you politely answer a friend when they ask how much you paid for your product (ie-how much did I pay per unit to weavers)? Saying to a friend “that’s proprietary information” sounds too formal/distrusting.

Thanks!

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Alexandra Kenin

I would also love information on initial price setting. I run a service business that runs urban hiking tours in San Francisco (www.urbanhikersf.com). I chose the price of $45 per person for a 3-hour tour semi-private group tour, but am not sure if that was a good decision. I chose that price because if I booked most of my tours, I could earn close to the $100k mark. While other folks who are in similar businesses sometimes charge less, I want people to know that I have a premium product, and I hope to charge $75 or $100 for a private tour. Since it’s my first time setting prices, I’d love to learn more about how others have done this successfully.

Thanks!
Alex

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Patty

I just recently started listening to Marie and she has some very useful information. I’ve been doing engraving for over 35 years and have raised prices all along but that food for thought today came at a time when I moved my engraving business from a storefront to home and am selling through my website. In looking at other engraving websites, the prices I’ve been charging at a storefront are higher than the average engraver on line and I’ve been wondering if I should lower the prices to the average prices.

But then, after listening to this, I decided not to. I consider my engraving to be quality work. I don’t use a computer engraver on things like baby banks and jewelry boxes. I use a hand operated machine, which is more time consuming but produces a more beautiful job. My theory is, you get what you pay for. Quality means something.

In fact, Roni, maybe your reply could be that you paid a “quality” price and leave it at that.

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Marie Forleo

Love your input Patty and the idea of a hand operated engraving machine creates such lovely images in my mind.

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mary claire

Yes! You do get what you pay for, and things made by hand have spirit in them. . . worth every penny!

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Justine

Last year I raised the prices of my jewelry for the first time in 4 years and to my surprise I started to sell MUCH MORE! My Bussiness bloomed after that simple change! I am planning to do the same this year, but I was still thinking about a strategy. even though I make jewelry this video really helped! THANK YOU!

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Marie Forleo

Love hearing that Justine and you are SO welcome :)

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Amanda Genther

I LOVE this topic! I work with my clients on raising prices, and I think so many people have the same mindset that if you raise your prices, you’ll lose customers. With my own design business, I’ve raised my prices in order for me to work with fewer, more select, clients.

I haven’t seen anything but good come out of raising my prices.

In order to raise my prices, I added more value to my services by working out a Brand Discovery Workbook with my clients before our project begins. I also developed a Brand Strategy Guide, Brand Style Guide and Wordpress training structure that let them leave with a few other takeaways and help guide them in the right direction!

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Claudia

Marie, this video was great timing. I have been considering raising my prices for some time. With a background in fitness and Ayurveda ( :) ) I took the plunge this year and created a continuing education and certification program in Wholistic Fitness™ for trainers, Yoga instructors and health professionals.
Your video made me realize that this is a completely unique and invaluable service I offer and I really just need to go for it and get it to the people who need this information. Wow, I am super excited.
Thanks to you and Ramit. :)

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Amy

Thanks for this awesome video, Marie. It was great timing as my bookkeeper was recently lecturing me on either raising my prices or finding expenses to cut out as my business isn’t very profitable.
I own a boutique style Eco-friendly cleaning business in a smallish town where people are budget conscious. I reward my clients with a lower hourly rate for signing a six month contract with us. I have built a very professional business with a high focus on customer service.
I haven’t raised this “discounted” price since I started almost 2.5 years ago but costs have risen around me – gas, employee wages, etc.
It seems the larger your business grows the expenses grow at double the pace. Do I rely on my clients to cover these rising costs? I’m very picky with hiring staff and pay them a good wage because it’s important to me that my clients have people working in their homes that I would want in mine.
Still contemplating…

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Marie Forleo

Hi Amy, it sounds like you really need to raise your prices if you want to stay in business. Higher profit margins will also allow you to deliver even more value to your clients and your staff!

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Kirk

Marie and Ramit,

Thanks so much for your inspiring and timely video. I LOVE that you actually took the time to spell out a real script for us to use. So many “teachers” say “you should do this”, but not., “here’s how”. Nice job!

I own a website marketing company. We’ve really been doing a great job at helping our clients get fantastic rankings for valuable keywords — if I do say so myself. :). The problem is, we are doing a job that our competitors are charging anywhere from twice as much to 20x as much as we do! And, we offer a really thorough, transparent service — usually far more so than our competitors. So, just this morning I was speaking with a team member about how we need to raise our prices, and BAM, you covered it

This video gave me such confidence and direction.

Plan for today: Revise our retail pricing plan and go buy Ramit’s book!

Thank you so much for making this video.

Kirk
PS – Ramit, dance like Tarzan!

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Marie Forleo

Nice Kirk! Let us know how it goes :)

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Kait

OOOOH that was so good… I have a tenuous relationship with money but even I was ready to pay more to get more. While I’m not at a point where I’m raising prices (grad school = #1 right now), this is totally getting bookmarked for future reference. :)

PS Ramit – DANCE FOR US!

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Jessica Angel

Oh Marie! You always hit the nail right on the head! The last few days I have been struggling with should I raise my prices and how high because right now my prices don’t reflect the work involved. I have written a new description for all my jewelry that tells a story, explains what I offer and have been offering, and what extra things I’ll be adding. That way I can justify raising the prices and it’s a win win for both me and my customers. I know my work is worth it and that I should go for it but I keep holding myself back! I, like everyone else, is afraid my sales with drop drastically. This is silly I know. I feel more confident after watching this video to go for it! Wish me luck!

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Marie Forleo

Hi Jessica! Be sure to read the comment above from Justine, a fellow jewelry designer about what happened when she raised her prices.

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Jessica Angel

It’s so funny because I did raise my prices last year and I had no change in business (perhaps even more). You would think with that as my example I wouldn’t be scared at all. Well I’m getting a whole lot less scared overall so thank you so much for all your advice and wisdom!

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Mary Collins

Hi Marie and Ramit,

Marie TV keeps getting better and better. Thank-you for this valuable service.

I have raised my prices several times since I opened my Etsy store 3 years ago. The first time was memorable, because my prices were very low and it definitely increased business to raise them. What a shock!

Every time I raise prices, I’m scared. After that first time, I find that it doesn’t have much impact on my sales either way. I’m just relieved and can continue working on my business.

I have struggled with communicating value, so this is a good exercise for me. I need to communicate that I use high quality materials, I never charge extra for shipping, and I ship quickly. Also that I get very good feedback from my customers.

Thanks!

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Marie Forleo

Excellent Mary. Communicating your value is essential! Don’t expect us to be mind readers :)

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Kara sorensen

When I started doing Acupressure for food cravings 5 years ago. I charged $85 per 60 min session. It usually took 3 visits to see a shift in craving patterns. Over the years, I’ve gotten better and better and raised my rates incrementally as I was encouraged by mentors each time. I now charge $200 per session and lives change in a 60 min session. But, I offer packages to bring the cost down. It’s been a journey, but I finally feel comfortable with my rates. These rates also deter people who aren’t really ready to make a shift. I want to work with people who crave change, and if they balk at the price, I know they’re not ready yet and that saves them money!

Right now, I’m not planning on raising my rates. But, I will write out a script that explains the value my clients receive more specifically. Thanks Marie!

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Kat

I’ve raised my prices substantially since I started. This has, in no way, given me less clients. If anything, it has given me more clients and certainly more clients I LOVE working with.

Amen!

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Bahieh K.

Hey Kat!!

I think that is key: getting more clients you LOVE working with!!

Amen to that.

xo

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Elena

Love that Kat! It’s a great feeling to be working with our ideal clients –those that truly value our services; only then we can be of even greater value to them.

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Samantha

I own a wedding and event planning business and I’ve recently raised the prices on all our packages. I felt it was time because I’ve gained so much more experience and education, plus I hired someone who has over 30 years in the business and very knowledgeable in multicultural weddings. I’m very comfortable with where we are price wise.

Pricing should reflect the value of your services and the market you are trying to reach.

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Yasmine Khater

Wow… super awesome :) Im loving it. I started my coaching business 2010 and started charging 35 dollars because I wasnt so comfortable, over the past two years I have raised my prices to 100 dollars.

I was surprised to see that most people didnt mind the prices, because they saw the value in paying me more.I have helped clients set up their business, help them perform better and achieve their goals.

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Scarlett De Bease

Really enjoy your videos and your humor. My personality and style is a bit off of the ‘typical’ radar as well!!
I reluctantly raised my prices about 2 years ago, and you know hat happened? Nothing! Existing clients happily paid it and new clients had no problem.
My wardrobe styling/image consulting service is very personal, and based on trust. In my opinion if you are giving your clients what they need and they are getting the kudos for their look and/or business, they are happy to pay you.
Thanks for all the tips.

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Shinazy

Normally I talk about my writer’s website; today’s topic is more aligned with my ‘day’ job as a Career & Linkedin Tutor.

My clients and I work together in 30 – 60 minute sessions. I offer a 30-minute Free consultation where I identify their unique needs.

I show them the value of my service by giving them 2 Free resume and 2 Free Linkedin suggestions. This way a potential client knows I will deliver. I then direct them to the recommendations on my LI profile page (LC Shinazy).

Next month I plan to raise my rates and I will say to my clients that when they follow what I teach them, they will see immediate results and their invitation-acceptance rate when they reach out to new connections will increase by 50%.

I know this because I do what I teach and these are my results.

Also, what I teach are fundamental skills that my clients can use throughout their career. I know this, too, because I’ve used these skills to advance my career.

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Tonja

We haven’t raised our prices but we did increase our shipping charges, although we actually offer free shipping on orders over $100. It’s a lot of fun to bring our wine related products to market and we’ve found that our customers are referring their friends and and so the extra volume in sales allows us to keep our prices the same. We also started giving away a free gift with each order so that is providing more value to what we do.

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Marie Forleo

Excellent Tonja. As a suggestion (if you haven’t already) experiment with surprising the customers who refer you with more perks. They are your unpaid marketing team and people love to feel acknowledged :)

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Cris Gladly

I so appreciate how Ramit provides scripts for the advice he gives. That is so helpful. And I think it is SO important for people to remember to track their outcomes!! Being able to mirror back the money you’ve made them and/or the money you’ve SAVED them is such a powerful way to illustrate value.

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Darris

AH! This is PERFECT! PLEASE have Ramit on every month. I LOVE your videos but it’s great when you mix it up with guests too.

This is a subject that my husband and me grapple with consistently. He has a tree service business and his specialty is climbing and technically challenging jobs. He is the consummate professional in his line of work. Since I’ve taken over his marketing and administration his income has spiked! Trouble is he almost always comes home telling me he should have charged more (he always does more for his clients). When we go out and bid jobs together my bid price is nearly always closer to what he should charge. He’s concerned he’ll lose clients to companies that are hiring cheap labor and charging less. I feel the best way to show his value is to EDUCATE HIS CLIENTS. For example, it’s common for arborists to trim out the interior of a tree and not touch the ends because it’s easy and quick and takes very little skill comparatively. My husband does what is right by the tree NOT what is easy. He always trims the ends back to remove leveraged weight from the tree.

I’ve never seen anyone with more integrity in their profession than my husband. I told him not everyone wants the best job, some people just want cheap and those are NOT the type of clients that will appreciate his work. Although he makes good money, he wouldn’t do the work without appreciation. I’m thinking the education route is best but always open to other suggestions.

Thanks Marie!!

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Marie Forleo

Thanks for your comment Darris – it’s awesome and yes, we love Ramit too. You are 100% right on educating clients!! Keep going woman :)

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Jody England

I coach coaches and one of my favorite (and easiest) ways to “raise prices” is to leave the price the same but change the time increment. So… if you are a coach and normally charge $150 for a one hour session, let your regular clients know that you value their business and really wanted to avoid raising their rates so you are keeping their rates the same, AND… just changing their regular time slot from 60-45 minutes. Let them know that you are committed to giving them the same great value, just in a more efficient time frame for both of you.
If you are still feeling jittery about it, you can tell them that if they don’t agree that it is still a killer value for the money you can revisit it after 60 days and make adjustments.
This system just gave you a 25% rate increase that is virtually invisible to the client.
I’ve done it with my own clients and I’ve never had anyone complain or leave me.
What do you think?

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Penna

Nice Jody!!! I like that a lot!!!

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suzanne

Dang. Good stuff!

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Monica Zimmerman

Wowsie…Love the script Ramit offered. I also really liked the dessert comment in Marie’s text above…”insight without action is worthless”
DIng ding ding…we have a winner! I will share that quote. Thanx again Marie..like the direction your video’s are going..keep it up!
Blessings

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Rowena List

How you value yourself/your worth and your services will reflect in how you price yourself. There are sliding scales in most businesses. I have always thought it is best to put yourself near the very top of the scale.I teach my productivity clients this very tip
My values to my clients are that I provide them with more time. more money and less stress. Once I explain all of the benifits and what I offer then I go into rates.

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Penna

For 20 years I was a freelance graphic designer for TV/Film and Web. Every 2 years I would look at my portfolio of work I had done, listed the new skills I had learned during the past 2 years and reevaluate my prices. I would also buy faster equipment & software upgrades at that time so when I would send my new price sheet out to clients, it showed what system (computer and software) I had. This showed the client what they were getting for their money. I knew they already loved my work, now they could see I had the latest stuff that their in-house designers didn’t even have :)

More important than just “gettin’ more money”… What happened was that I felt better about myself and what I was offering, which in turn made my clients respect me MORE. Were some clients unable to pay my new rate…. yes. But those who weren’t bothered by the new rates actually sent me MORE projects that more than made up for the loss of a few clients. (Even those who couldn’t afford me respected what I was charging, it just wasn’t in their budget for that project).

Raising my rates kept me in the game… Boosted my self esteem (you’d be surprised how much fantastic work you’ve done when you gather it together and really look at it!!) and allowed me to volunteer at a local elementary school, teaching art to 5th graders! Win-Win Girls!!

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Carey_PA

First, love Ramit. Great guy to have on this video for this question.

Second, I have recently raised my price on my home study course that teaches people how to start their own ATM business.

I have to tell you, I was scared to death! I’ve been at the same price since I launched in May 2011. But I know my product is worth a whole lot more and I’ve been getting feedback from students saying the same.

So, June 25, 2012. I almost doubled the price! Talk about HEART ATTACK!!

I was so petrified. Then something happened…..I got a sale!

I was like holy crap! That’s great. Then another sale.

Then another and I was like….*sigh* this higher price thang wasn’t so bad after all.

Thanks Marie for a great video and Thanks Ramit for some great advice, as usual.

Carey

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Catherine Ruddell

Love the out takes at the end, LOL, and love the new format for MarieTV – so polished, still fun!

I was having a really hard time raising the prices of my paintings, even after an interior designer commented that the pieces I create are really unique, desirable, AND hard to find in her line of work.

The kicker was when I went home and started comparison shopping online at some of the big box retailers, and realized that I was pricing my original, custom pieces nearly the same as the mass-produced re-printed stuff out there (ugh, dis-heartening!)

I totally agree with adding more value along with the price increase, because the marketing is what makes it fun for me – as an artist, working can feel pretty solitary most of the time – but I am also trying to create an event out of each sale, with a complimentary wine & cheese party once my commissions are installed in the space, so that the people supporting me can invite their friends/family/staff to the event and really get to know me as a member of their community.

Thanks again!

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Natalie Sisson

First off loved seeing Ramit and you rock the money questions. Surprised you didn’t get him dancing on your intro – just to shake it up.

I’ve tripled my coaching prices since starting out as I’ve
A) Realised my value and results I bring to my clients
B) Gained more confidence in what I do

To my surprise I got more clients when I put my prices up.

I think it’s just common sense that if you’re raising your prices and charging what you’re worth you back that up with incredible value and the results you’ve brought your existing clients to remind them of your great work.

If they don’t see it that way then either their expectations are off, or you need to fire your client.

Natalie

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Stacey Harris

I am also a Virtual Assistant as well, although I do not offer real estate services. My focus in internet marketing and WordPress services. I have been in business for 14 months and have raised my rates once. I actually double my rates about 6 months ago. I had originally worked on retainer and offered retainer discounts. Since my practice was still so small I did choose to grandfather my one regular existing client into her current rate structure, but did do away with any discounts as she increased her retainer package.

All new clients are at the higher rate and I feel so confident with it because I know that my value is there and I share that with them. I think by discounting my rates before I was showing potential clients that I didn’t find any value in my services, so why should they? I have also packaged many services so my clients have no idea what I actually make an hour, they just know what they spend on those services which has also helped a lot.

I also now look at my package prices regularly (every 3-4 months) to make sure I’m at a solid price point both in the market and for my own value.

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Caroline White

Hey Stacey! I am actually in the market for a VA! If you would like to chat, perhaps we could move our convo over to facebook? http://www.facebook.com/creativecaroline <3

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mark

great discussion – people generally dont charge enough. I used to charge hourly rates until I learned hourly rates suck. I learned in 1999 to never charge hourly rates again. Since then I have charged monthly fees or project fees. By doing this you look to provide high value and also create efficiencies in your service delivery – this means that if I was working on an hourly rate it would be significantly higher. For example I used to charge executive clients $120/hr -I changed my value proposition and then charged $999 per month. My average engagement with an executive client is two meetings a month for one hour and they stay with me for 2.5 years on average. Thats $500 per hour. they have unlimited access to me for that fee so sometimes I do different things for them but the hourly rate on that fee never drops below $250. I blogged about it at http://www.peakperformanceinsight.com.
Marie you do a brilliant job – I introduce people to your site every week including my own clients.

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Sang D

Marie…

New, recently acquired — stalker to your site. Your name came up in a FB group and I have spent the last 7 days and about 60 hours on your website and youtube channel. Just call me STALKER SANG! You are amazing and I soooooo resonate with you and HOW you deliver your message!

As for Ramit — I FLIPPIN LOVE his book — I have the audio version because he makes me feel like he is right here in the room yelling at me about what I need to be doing. And he puts me on the spot in my own bedroom! Shhhh!

This is great information — I actually have a client that is about to enter a new dance season — and I am concocting a survey to send their way to see what needs they are looking for if budget was not an option. :-)

Line that stuck out — “Properly convey value in yourself” LOVE it!

Thanks Marie for invading my mind, making me dance on the couch — and change up things a bit! Looking forward to meeting you one day! :-)

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Terry

Hi Marie:
I raised my prices on my massages about 5 months ago. Most of my clients were ok with it. But as time went on, I noticed alot of them weren’t coming back and cancelling their appointments. Even my loyal ones I had for the last 5 years. Things were not looking good for me. For the month of August, I put on a sale, and wow, they came back. People like a good sale. And the funny thing is , some of them even tipped more. So they ended up paying the regular price in total. lol Any way, I am now trying to think of creative ideas for sales to bring them in. Is it a good idea to have sales on every month or every 2 to 3 months.
By the way. I adore you. Thank you for being out there and sharing your knowledge with a side of your wonderful goofy energy.
Terry

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Eleanor

Great video (as always)! This was really timely as I go in for an interview in 2 days. What blew my socks off was that discovering from an accountant what value I bring. Let me explain – I used to “gestimate” what price I wanted and, for the 1st time, decided to research the going rates. Then I asked an accountant (expert acct who does work for all size businesses) – he told me to raise by 40% what I was asking and laid out in front of me all the value I was bringing PLUS the final cost hiring me would be to a firm. Numbers don’t lie.

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Dora

Perfect timing! I am presently trying to figure out a pricing structure for my programs/workshops that focus on the aftercare of women who have been challenged with breast cancer. I have been conducting pilot programs within my home and now it is time to expand to various organizations and hospitals. I need to get clear with the pay scale and this video gave me great food for thought.

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Helen Quon

Marie,

Love your dress! Great video.

Thank you both!

Helen

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Thomas

Genius, I just did this. I chickened out with my existing clients though. I felt like they were the foundation of my practice, so it was my gift to them. I wasn’t underpaid before though and don’t feel like I resent my decision.
Dynamite info. Keeping the script handy for when I have another price increase. WOO HOO!

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Zuzana

Love the interviews! Such great information, as always.
I notice that there have been lots of interviews with dudes and as much as their content rocks, I’d really like to hear more from the ladies who are kicking butt as entrepreneurs. Please :)

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Emily

Thanks so much for this video! I’ve just started my new business, Sustainable Shanti, making artisanal organic skin care products and pricing was one of the big hurdles that I faced and continue to think about. I know at some point, I’ll have to re-evaluate how I price my product lines and I love the script that Ramit gave!

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Jessica Patterson

Thanks Marie and Ramit! I’ve followed you both for a long time and this topic is definately one I discuss with my clients quite often. It’s a HUGE issue that solopreneurs need to be educated on so thank you for this video and what a great script. I think it’s important to do the challenge and come up with your own script. What a great exercise! Again thank you and keep it up guys!

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Laura

Seems pretty lately especially internet, they always have something free all the time, blogs, newsletter and something they charge for but I do not think all the industries can afford that.

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Annching

When I was 19, I had a jewellery business, and it was slowly but steadily growing. One day, in a desperate move, I lowered the prices on all my items (my mom told me my stuff was too expensive) and after that, I got zero sales. Business tanked. I focused back on school.

Lesson: Don’t listen to your mom in this case!

I found also that when I started working as a freelance copywriter, I was able to consistently double my rates to what they are now. I went from charging $50 to regularly taking on $2000+ clients, within 18 months. All because of the idea of specialization (I work only with fashion businesses). I’ve had great referrals this way because my clients have told me that my experience and talent is rare, and naturally, word spreads.

And finally, while I was a photographer, I got the worst clients while I was starting out and doing gigs for free. Won’t elaborate, but let’s just say, it was really bad. And my clients who paid more really loved my work and were consistently better clients.

So there you have it – if there’s anyone with a doubt, I’ve had experience in 3 different businesses, in 3 different industries, and it all points back to the same concept. Thanks for another great episode!

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Laura

I also have another comment/question: I work in a company that already have what it seems very high prices but sooooo much value. Although our prices are very high, our profit margin is NOT compared to the standard profit margin industry (we sell organic products) which is like 6 times more compared to our not even twice more profit margin. For us is really tough to even think about raising prices and we have not found yet our ideal market that is both affluent and environmentally, socially conscious. Do you have any feedback you can give to us??? We love MarieTV. Thank you!!!

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Sonya Stattmann

Hi Laura, the market is out there! I couldn’t click to your website, but I know there are lots of people who value quality, organic products. If you communicate your value, they will come. I will go out of my way for good organic products, quality coffee and the things that mean the most to me. What I value, is what I spend my money on. It is so much about recognizing how valuable our business is and then believing that others will see it. If your prices are high because you are much higher quality, communicate the quality and don’t worry about the price. Many blessings.

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Laura

Thank you Sonya!! We are working in how to communicate and to who communicate… We are a company that makes natural & organic furniture. Many blessing to you too :)

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Jen Turrell

Just wanted to say: I Love Ramit! He’s how I found you in the first place Marie! So nice to see the two of you together.

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Hanna

Marie, I can’t even say how much your work inspires me and has already helped me! And this topic couldn’t have come at a better time. I’m just relaunching my business with a new blog and Etsy shop selling some awesome jewelry. I’ve been sitting on the pricing issue for a week and couldn’t decide which way to go, to price for profit or according to what I think people would be willing to pay. But, watching this video, I realized two things:
1. I should price according to the value I’m creating. My jewelry is totally worth every penny, so why sell it for less?
2. The good old “stop assuming” (I have a MA in Psychology, so I should know that by now)! Don’t assume you know what people would or would not do. My job as a creator is show the value of product and educate my client as Darris wrote earlier, and let them decide.

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Stacy

Great interview and content. Marie, love this set. Shoot there more! So chic!

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Kiihele West

Loved the show today…and would so enjoy seeing Ramit dance! I have an Etsy shop and pricing has always been a problem. I try to keep my prices competitive, but with the price of fabric going up and up I may have to do a little repricing. With all this information it won’t be quite so nerve-wracking. I am also going to go back into my site and do some rewording so that clients know what special items they’re getting…upping my value so to speak. Mahalo nui loa.

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Emily

Fantastic and gloriously timely video, Marie & Ramit – thank you!

Like Cecilia and others above, I’ve actively helped other entrepreneurs raise (actually double, in one case!) their rates and employees ask and get the salary increases they deserve. But when it comes to my own relationship with financial valuation – whoa nellie – it’s such a struggle sometimes to honor myself and practice what I preach.

The timing of this video is so eerie. I’m in the midst of a position shift in my day job, where I have to clarify the salary increase, and I’m about to launch a new website for my entrepreneurial business (shout out to b-school!) on which I’ll be launching, and therefore needing to price, my first public offering. Exhilarating and terrifying.

The messaging Ramit has provided in this video is simply awesome and has really brought me much needed clarity.

Thanks to you both! And to the community for additional insights & inspriation. Brilliant.

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Cecilia

Hi Emily!
I’m glad I’m not the only one. :) I’m curious to see how it all turns out for you. How cool to see this video right before you set a price, sets a powerful precedent.

ox
Cecilia

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Bikram Yoga Vancouver

Can never get enough of you Marie Forleo!

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Sonya Stattmann

Thanks Marie and Ramit!
I love this topic. I am constantly supporting people to step into their value. I think it is something we have to do more and more each day, no matter where we are in our life and business. I am also super excited and inspired by the community…look at all the love and support people have gotten just from their comments.

I spent the last year really getting clear on my value, so that when I raised my rates, I could communicate what I am offering. I had to dive in deep to my passion and be willing to let go of all the things I was doing for my clients, that I didn’t really love and wasn’t my unique gift. I was a really good designer and advertising copywriter. I helped my entrepreneur clients create great marketing campaigns. I thought this was what they wanted, but after my soul-searching, I realized my best work was on the internal stuff, like setting boundaries, owning their value and learning to get honest about why they were not succeeding in their business. I realized that my value was in helping them shift their mindset, their actions and their behaviors. Doing this had an exponential effect on their life and business. I would spend a year working with someone on their marketing and business, and they might still be struggling with their value! I could work with them for two hours on their value, and everything would dramatically shift with their business. That is what I communicate now, and when I raised my prices. I lost a few clients, but the amazing thing is that not only did I get my best clients after that, many of the old ones came back when they realized they couldn’t get what I was offering from anyone else.

Each of us is sooooo valuable, it is just about learning to own it and share it with the world. Thanks for all that you are doing to change the world.

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Aimee

Hey Ms. Forleo! Thanks for choosing this topic. It’s a super helpful video for all of us–especially for us ARTISTS! One of the questions I used to ask my clients (who might have initially recoiled from my pricing before they commissioned me) is how they felt about their investment, now had their painting in their possession. Every single client I asked said they would have paid double in retrospect. I suspect that goes the same for a lot of budding entrepreneurs. They deliver so much value but charge for 50% of that value. I think it’s really important–before you raise your prices–to get behind your own pricing. To know that you/your services are worth it. I think Ramits “script” really helps do this. Back when my work was, for lack of a better word, “cheap,” I would convey that pricing with a huge side order of apology. Once I realized that my skills seemed to grow each year and I had more good client testimonials/work to show for it, I raised my prices accordingly. I can tell you that I had more work per year at my highest fees than I ever did at my lowest! Live and learn. :) Thanks Marie!

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Nicole

Yes, I increased my prices of my jewellery about a year ago now and simultaneously introduced some exclusive pieces to my range at a price I wasn’t sure people would pay. The result has been that these exclusive pieces (that I really enjoy making) are now my best sellers! I also think their price point has made my standard range seem very reasonably priced. I am now finally paying myself a regular wage(!) The video was a great reminder however that whilst I am able to show and share the changes I have made to my jewellery when I sell directly, I need to communicate this information with my online customers too. Thanks so much Marie. Nicole x

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stacey

Hi Marie, I loved the script and the technique for raising prices. Can you translate it for some of us who don’t bring money in or save time for I clients like private yoga sessions, massage therapists etc. I have a long time client I teach yoga to twice a week and though she sees the extreme value in seeing me we have built a very close relationship and it feels difficult to raise the price. I charge newer clients more but just figure she can stay at the old price. Thanks!

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Yvonne

Another great interview…
I am raising my prices soon and putting them on my site. A friend of mine referred me to her friend and she looked on my site and said “that girl has great testimonials yet I didn’t see her prices do I’m guessing she’s way expensive” my friend told her what I charge and she said “oh gosh I can afford that!!”
Therefore I have decided the time is right so hiking the price, creating more value by throwing in more meditations, email support through the coaching journey, inspirational texts (which clients love) and a time management pack. Also discounts to my online products saving them cash there too…
I’ll put the packages on my site when the new Wordpress up and running… Or maybe now actually!!

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Cheptiony Mutai

I love the concept.You do the work first for the client, then sit down and explain why they should pay you more.You explain how much time you spent working on the project.

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eugene

Its bad manners t sit in front of a lady and have your shoe under point in her direction !!

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Marinda

What a great script! Thank you for this, Remit & Marie. I love the part where you tell them your plans for the next 3months. I never thought of that, and it motivated me to actually GET a plan.

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Nica Mandigma | Virtual Assistant

Totally love this interview!!!

I especially loved that Ramit used virtual assistant as an example. I really have to think about my positioning and how I market myself. Thank you so much for doing this interview, Marie.

And yes, I do have problem raising my prices because my target client is bootstrapping entrepreneurs and coaches. But one “script” that I used on a client when I raised my prices is something along the lines of this

“I’m so happy that we’re working with well over a year now. As much as I’d like to keep my rates the way they are now, inflation also hits my practice. By next month, I will be raising my prices to ($$) and I wonder if you’d still be intrested in continuing with my services after that.”

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Ed Brenegar

Great video!
I went through this transition about eight years ago. I tripled my rates. Yes, tripled, and saw immediate results.
Thanks for a great exchange.

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Fiona McAllister

Thank you for this video. I have not launched my business and website yet, but I have been pondering and worrying about what is a reasonable price for my services. I was actually thinking about charging people in the $20/hour range for image and style consulting services, but after seeing this video, and realizing that my “prices” are barely more than what high school students are hired for with little education, (I have a bachelor’s degree in Home Economics with senior level fashion design and tailoring classes, plus I am working on a specialization certificate in Image Consulting from the Fashion Institute of Technology) that charging so little would make people question my value. I have been freelance tailoring on and off for 10+ years on alterations for wedding dresses and prom dresses, completely altering men’s business suits, including the jacket. I also have experience in career counselling, so I do have a lot of value in fashion, clothing construction, personal style and business clothing culture knowledge to offer clients. And I was going to charge barely more than a high school student! I don’t know what I will charge yet, but you can bet it will be more in the $50-75/ hour range! I have the same fear as everyone else that I won’t get business for that price, but hopefully those who want specialized help will be willing to pay for it!

Fiona

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Sandy Sidhu

Fiona, congrats on launching your business!
Another thing you have to factor in when you are running a business is that you have costs..after charging $20/hr, how much is left? You also have to take into account that you don’t work 24/hours a day and that you have to spend time on sales/marketing and business development. And not to mention you have to take into account your experience and expertise. I think too often (myself included) we give ourselves an hourly rate based on what were used to while working in a full-time job in the corporate world.

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Fiona McAllister

Thank you Sandy for your thoughts! I hadn’t even considered that side of time spent for marketing and business development. You are very right there. I have been working on getting the website developed, figuring out branding etc etc. I don’t even know how much time has already gone into developing the business, before I even have solid services to offer yet!
Fiona

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Laurel Anderson

Wow, I love reading everyone’s commnets, it’s learning exponentially. And I love Ramit’s socks! Education is the key to raising prices. How can you convey your service or product is worth more if it’s not clear all that goes behind it? I am introducing a new product to Costa Rica and it takes a lot of time to teach about the benefits of canvas rugs. Over the years I have changed my tecnuqes and finishes which have more benefits but cost more in raw materials. This is how I raise my prices, by showing the clients the added benefits of the improved products. Since canvas rugs are such a new concept it’s hard to raise prices when they are just comprehending the product itself, but my steady clients who are design houses have accepted the changes because they know they’re clients will be better satisfied with the product. thank you so much for giving us th eopportunity to share our experiences and to learn form each other as well as your guests!

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Ngoc Khong

Oh my God, I can’t believe that’s Ramit. He is the one that I admire a lot. Thanks to him I had the chance to know that there’s an amazing person like Marie Forleo…

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Sandy Sidhu

Great video Marie and Ramit! And we totally need to get Ramit to dance!

I took the plunge and raised my rates with my clients a few months ago and even though I was a bit nervous I feel so much better as I finally feel like I am getting paid what I deserve for the value and results I am bringing.

I think like Ramit said it’s about knowing exactly what your clients want and speaking to them in their language.

Thank you!

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Laura C George

Really great content here. I did it all wrong!! I raised my prices last year, in the midst of not even knowing that my business would evolve as it did and completely switching ecommerce platforms. I told my current clients that I was raising my prices and that they were welcome to purchase at the old prices to cover them through the next few months. Most of them didn’t say anything… but they also didn’t stay with me. But one client was up in arms angry. She even told me I could never build a business with the new prices and would undoubtedly fail. I think I could have avoided some of her negative feelings if I had approached it more carefully. I was defensive because I felt I was worth more than the $10/hr I had been charging. And naturally, she was defensive because she had been getting something at a certain price and didn’t anticipate that ever changing. Those emotions were a volatile combination in a situation I could have tightly controlled instead. Thanks for the tips! My pricing feels perfect right now, but if I ever do raise again, I’ll be implementing these techniques.

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Michael Fishman

great job my friends !!

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Alba Figueroa

I had the same issue when I was a VA. And I actually lost clients when I raised my rates but gained loads of relief too. I was working way too much for too little money and felt unappreciated. Since then, I was able to change my business model to one that fit my life better. So it was totally worth it. :)

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Katie Bennett

I am a mother of 2 young boys and make childrens clothing, it is unique and different to everything else out there, I have a niche market and am really lucky to have great customers.
Raising prices for me is a way that I handle having too much work.
I remember the days of when I first started out and was scared to charge too much, who would want it, why would they pay for my work?
But my product was really popular and eventually I couldn’t keep up with all the orders. So I raised my prices.
YES I lost customers – but in loosing them, I gained others (ALOT more) and the customers I lost were the ones that didn’t want to pay for anything, and always had a problem – were difficult all around.
So these were customers that would just hold my business back anyway.
The first biggest boost I had in business, was the first time I raised my prices.
Now I am so busy that I have had to hire employees for the first time, so again next season my prices will be raised to cover the cost of their wages.
I expect I will loose more customers, but new ones will come along, and the new ones won’t know that I used to charge $30 for a skirt that is now $40, and will have no problem in paying that.
If you are thinking about raising your prices – DO IT!
You deserve to be paid for your individual talents and I’m more than sure that many people out there will have no problem in paying for them.
It is a scary leap to make, even now sitting here thinking about having to raise my prices again I get that feeling of dread and uncertainty – but I am still going to do it. I deserve it!

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Rebecca Ranson

I would like to thankyou Marie from the top of my heart all the way from Australia. The inspiration & adventure that I receive through your YouTube & Facebook posts are seriously rocking my world. My confidence & sense of personal power is growing day by day as is my awesome Healing & Creative Arts Business ‘Sanctum Healing’
Blessings 2 U & all of your fantastic companions for allowing us to share in this vast knowledge & step up into fully embracing our dreams. Thanks also for the Shimmy Shaking & yes we are so so worth it! People value us more when we value ourselves!
Blessings. Rebecca:.~*

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Melody | Deliberate Receiving

I raised my prices a few months ago and announced it on the blog. I was totally transparent about why I was doing it – I had underestimated how much work email coaching would be (I do mostly phone coaching) and I was undercharging by a huge amount. The reaction was amazing – no one got angry. In fact, I had several people commend me on showing them how to do something like this so authentically, giving them permission to do the same. I hadn’t considered that my raising prices could actually inspire someone. I was totally blown away.

I’m about to raise my prices again. I’m totally restructuring my business, and this will be a big part of that. I do plan on grandfathering some of my most loyal clients in, but only a few. For example, I have one client in India who, due to the exchange rate, is struggling to afford me as it is. If she was a pain in the ass I might feel differently, but I adore her.

It is still a bit scary to raise my prices. Each price point brings up fears. But I’m taking a bit of time to make peace with that and when I’m comfortable enough (nearly there), I’ll implement. I’m now getting to the point where I’m actually excited about the change, about the additional support I’ll be able to offer under the new structure, and about the clients that this new structure will attract. A big challenge was being able to visualize clients not only being able to pay the new prices, but doing so happily. That took some work, but I’m much more comfortable with that vision now. When you dread their reaction, it means that you have a negative expectation. You can’t go into a negotiation expecting things to go badly and come out smiling. So, that’s what I’ve been working on. And the better that vision feels, the less fear I have. :)

Huge hugs!
Melody

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Karina Ladet

This is so funny! I had just raised my prices for doing intuitive readings when I received this video in my inbox. Prefect timing! I even wrote a blog post about ut because I really had ti write about how difficult it can be to raise your prices – especially when you do non business related work like me : ).

Thank you so much fo the great pep talk! It was juts what I needed to hear.

Big hugs, Karina

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Karina Ladet

Ooops! I forgot to leave my link: http://www.karinas-inner-space.blogspot.com

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Samantha

I offer Family Dynamics Speech Therapy and Family Dynamics Coaching to help parents find their child’s sparkle. I’m increasing rates next week and am a firm believer in the fact that customers who walk away either aren’t the right match for my services OR I’m not conveying my value very well. Love the assignment to write out the value I deliver because it is massive – helping children with autism connect with others when their traditional MDs said it wasn’t possible, helping parents find gratitude and joy in their relationship with their children. It seems like a natural skill to me so when I slip into self-criticism I look at a vision card I created that says “I am Somebody.” Thanks Marie, this video strengthened my next step!

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Olesya

Great!

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Jessica

I did it! It was super scary but I just went through with it, changed my prices, came up with some fun ideas in the process, and now I’m holding my breath to see the outcome…

Thanks for the courage everyone!

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Lena

Hi Marie and Ramit! Loved the video and I would love to see Ramit dancing ;)! I could say to my clients: with my product you can look gorgeous and stylish effortlessly, save lots of time dressing yourself everyday, save money, time and stress because you’ll buy much less clothes and you’ll know exactly what to buy when you go shopping, improve your relationship because you’ll feel hotter & happier and you’ll feel less stress because your image and style will be under your control. Does this make sense?
Thanks,
Lena

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Karlie Moore

Awesome video Marie, thank you!

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Chistiane

Hi, great video. I always love the outtakes after. Keeps me watching through the end, lol. Anyway, I am so new and have not had my prices for a year. So I will wait, even though I am in the process of doing massive advertising AND having my website professionally redone. I don’t want my clients to think they are paying for that!
Love you Marie.

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April M. Smith

Wow! This was perfect timing for me as well. As a Virtual Assistant I understand the challenges the video participant felt. I have slowly increased my prices over time, but with the last quarter of 2012 upon us I haven’t seen the dramatic profit increase I was expecting. I plan on starting 2013 out with a bang, new programs, new mindset and… new prices! I agree whole-heatedly that having less clients who are willing to pay more will return provide you with a quality client. Thank you again for wonderful content & videos. :)

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kerrie friend

Sensational advice…you’re a legend Marie…love from an Aussie IMAGEpreneur

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Tammy

I had a client (a university) that was hiring me to teach corporate style computer software classes for their continuing education programs. They had a base rate for all instructors, that was a lot less than my rate. I explained that the software I teach is specialized, and that I could be very helpful in liaising with their clients to establish client needs before booking the courses with them.
When I talked to them a bit about the software, and how my classes are different, they were happy to DOUBLE their usual rate, if I would do a preliminary interview with their clients to establish prerequisites and needs.

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Sukie Baxter

Perhaps the best episode of MarieTV ever. My favorite, at least. I actually raised my prices during the horrible economic slump by increasing the time that I was giving to my clients and also referencing the fact that I had completed a lot of continuing education that made my services more effective. Best move I ever made, really.

I would like to work fewer hours and on fewer people because at the rate I’m going, I will soon be burnt out, so I’m planning another price raise. This time around, I plan to package my services differently and actually make something that I’ve been offering for FREE as an oh-by-the-way thing part of my core offering.

Every client asks me how they can keep their body feeling flexible and pain free after their Rolfing sessions and I always show them a few good exercises/stretches if we have time. Now I would like to make that an official part of my sessions with customized post session workout instructions for long term flexibility and pain relief. It benefits the client because they get better results AND don’t have to keep coming in to see me to fix the same thing over and over, thus saving them money over the long term. It benefits me because I like getting results and working with people who are committed and who do their homework. Win-win. But it means more work for each client = fewer available time slots = a higher rate. But hey, wouldn’t YOU pay for long term back pain relief without drugs or surgery??? :-D

Thanks for helping me outline this!

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Erin O'Brien

Marie, this video couldn’t have come at a better time!

I’ve been charging just above minimum wage for social media work. And I’m specialized! I am realizing my value, and instead of resenting my clients for the low hourly rate they’re paying me, I’m going to raise my prices… and use this video as a guide!

I’ll say it again: I’m going to STOP resenting my low-paying clients and take matters into my own hands! I’ll continue to deliver great service, and at a still reasonable rate.

Thank you, too, Ramit, for a fantastic answer.

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Dodie Jacobi

FINALLY got to watch, and it’s perfection. Raised my hourly rate last year from $175 to $225 explaining I’d not raised rates in at least 7 years. I offered existing/loyal clients a limited time chance to prebuy time at the old rate, for use within 6 months. Only a handful took advantage of the prebuy, but all continued into the new year at the new rate. Many also said empowering things like, “You’re worth every penny.” It was the beginning of a business level leap and client vow renewing luvfest.

I’m now increasing pricing on a program I started last year (thanks to RHHB School!) for which I’m getting 100% renewals. I’m sharing this impact factoid, as well as the results I’ve created for my clients, and again offering the program at the “inaugural price” for a limited time and signed up 3 more clients this week. I’m on track with other leads to add another $30k to $150k in the next three months.

And yes Marie, you may quote this impact! It started with YOU and Laura Roeder, and I continue to learn, be inspired, and apply what is making this my most lucrative in a 30+ year career. Even if, perhaps especially because, you dance on your videos.

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Connie Polk

As a photographer whose prices haven’t changed in years, up against younger, newer competition who insist on charging little or nothing, this was the perfect video for me to watch. Thanks!

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Katie

Thanks Marie for your video.
I also enjoyed this and thought people might like it.
Realising from the both of you that I probably do need to raise my price soon. Yah!
Looking forward! :-)
http://www.luckybitch.com/2013/04/how-to-increase-your-prices-without-losing-clients-freaking-out-or-feeling-guilty-about-it/#

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Anne

I am a performing musician, and wedding bookings, which have been my mainstay, really took a dive the last few years. I haven’t raised my rates since the beginning of the recession. Because California min. wages go up next year, and I hire roadies as helpers, I must raise my rates. So here is my carefully-drafted homework, my value sentences. I will be sending this along, with my new fee schedule, to the wedding coordinators and booking agents that I work with. I’d love your feedback, Marie:

“In the past year, I’ve added over 100 new titles to my ever-growing music list, from all the wedding favorites to the hottest pop tunes that brides want to hear. For the most part, if a DJ can play it, so can I.”

If you can think of anything additional to add, please let me know. Thank you for the wonderful video. It makes me feel positive about raising fees.

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Krista Kubie

Hey, Marie–
Thank you so much for bringing Ramit in to answer this question. His advice has been incredibly helpful. My husband is a piano teacher, holding down 30 students every week. He is a highly-educated professional musician, but he is paid less than other teachers who have half his education and twice the free time. We wanted to know the “classy way” of raising rates, and I knew all I had to do was search for my question and your name to find the answer. Thank you for this post and everything you continue to do.

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Flore Leng

Dear Marie,

I love to watch your video, it so awesome and inspiration ! I like to see you dance as I like to dance to hohoho :)

I was thinking to raise my client price and was worry how should I put in a nice way? Your video give me an idea how to write to my client.

Just a brief discription of my situation, I have a new product on electronic wine aerator which I offer to my new client at a low price which they want to test out in the market. After 3 months I realized that my product is sellable and I need to raise the price.

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Marilyn

Hi Marie!

I recently raised my rates and I did experience a drop in client interest. I do believe my increase is justified and I am holding true, but the consequence has been fewer clients.

On a daily basis, I am honing my website, with the aim of conveying my value. As an aside, I have discovered over the past few days that my website jumped from the 3rd page on a google search to the first page and so I must be doing something right, but it still hasn’t translated into more client purchases.

I stumbled upon you about four days ago, and I’d like to thank you for your generous spirit in offering inspiration and encouragement. xoxo ~ Marilyn D’Auria

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Paula

I will follow-up for six months, in the areas they show concern about today
I will offer my blog in a daily email
I will help them set goals for the next six months to attain their dreams

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Aradia Goseling

As a maker one of the easiest ways to raise prices (and a way I learned from my business coach, Laura C. George) is to up the ante with the quality of materials you use. That inherently will shift your prices because it’s more expensive to create something.

I also find that another way to do it is be focusing on things being more ooak. When you make something that is easily repeatable in it’s design it’s not as “special” as something that literally is of a severely limited quantity.

Over the last five years I have slowly raised my prices partially out of necessity and partially out of growth. When I started out I really didn’t have a handle on what it cost me to produce anything and I was losing money left and right over “small mathematical errors” (ps those errors add up!). Also as my ability and technique has further developed my prices have risen to reflect that.

The result, an increase in sales, and less sales to maintain the same amount of income.

Now one tidbit here: it’s ultra important that you are speaking to your “right customer”. Trying to sell to someone who doesn’t truly value what you do, your artistry, talent, skill, etc means it will be more difficult for you to sell at a higher rate. However, that’s just a clear indication that the person probably wasn’t a great fit for your offering(s) to begin with!

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Jess

Hi! I can across this post when I questioned Google on responding to a price rise on goods! my story is that I own a dessert table business and had organised with a cake supplier to provide me mini desserts. She provided me the price list, I chose what I needed, my client agreed to the mini desserts and paid the deposit (50% of the goods). Cake supplier provided me an official quote, however she had miscalculated the cost and had under quoted by about $30. I told her this, she said she’d fix it up. Didn’t hear from her for two months, I didn’t pay the deposit as I wanted to be fair and have her send the updated quote through. I then get another quote form advising that there’s a price list change – the cost was just under $200 more than originally agreed to. Am so upset that this has happened. I totally understand price changes, but not once did she mention any price change possibility, nor did she mention it on the quote. I believe that it’s completely unethical to change an original agreed to quote (and she fully knew that a deposit had been provided to me) – am I wrong here?

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Judith

Thanks for sharing your thoughts about Ramit Sethi. Regards

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iron desert cheat

An intriguing discussion is definitely worth comment.
I believe that you need to publish more about this issue,
it may not be a taboo matter but typically people don’t talk
about these issues. To the next! Kind regards!!

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