Should you be charging more?

Is it time to raise your prices?

The world is on fire. Businesses are closing all around us. This might feel like the worst time ever to be asking this question. I’d argue that it’s also a good reason to consider it.

We’re all feeling the fear right now. These are tough times. Most freelancers are terrified that they’ll ask for too much and lose the job. 

But here’s the problem.

If you ask for too little, you’ll end up closing down your business, looking for a full-time job, or toiling all hours and seething with resentment while still struggling to pay the bills. 

Which isn’t serving anyone. Not your clients, your customers, your audience. And certainly not you.

Some signs that it might be time to charge more:

• Your overheads have risen and you’re no longer sure you even break even on some of the art, goods or services you offer.
• The cost of living has soared, but you are still charging the same fees you were five years ago.
• You’re resenting the sale before you’ve even wrapped up the goods for posting, or for the customer to take away.
• You’re working longer and longer hours. But have less to show for it. 
• You feel no joy on landing a new client or commission – just exhaustion. 
• Everyone agrees to your estimate, without haggling. 
• You’re attracting more and more of the difficult jobs you don’t enjoy. (Here’s more on how to handle that.)

Things that might stop you charging more:

• The Fear: fear of appearing greedy or arrogant, fear of losing all your clients, fear that someone will say you’re not worth it. 
• Imposter Syndrome: who am I to charge so much?
• You’ve bought into the starving artist myth, and feel it’s somehow wrong or selling out to make too much from your creative work.
• Perfectionism: you can’t charge more until you’re sure it’s perfect.
• You’re not sure of the value of what you offer. 

And some basic maths:

If you raise your prices by 25% and lose a quarter of your work as a result, you’ll still have the same income. As a bonus, the clients you have left will be the ones who appreciate and value what you do – and are often easier to work with. 

You’ll also have more time, which you can spend developing new income streams or finding new clients who can afford your fees. 

So how do you charge more?

On March 25 I’m doing a workshop about setting your prices, understanding the value of what you offer, and communicating that clearly. 

But when you’re telling customers your price is going up, be as straightforward and concise as you can.

Give regular clients plenty of notice so they can budget and plan for it. 

You might want to explain, but don’t apologise. And keep it brief. When people are getting bad news, they don’t want an essay about your problems, or a lot of hand-wringing and emotional labour added on.

It’s not easy, but be brave. 

If you’re struggling to find the right language for this, search online for a template, and tweak it to be right for your business. 

If you’re scared of losing too much business, do it gradually, client by client. There are often natural times for this. When you finish a project and start a new one, when you’ve worked with them for a year, when they ask for more work.

Ask your clients to contact you if they’re upset or worried. 

Most will simply accept the rise, and adapt to it.

For some, it might be a stretch too far. If you don’t want to lose them, there might be something you can offer. A lesser service that will still work for them. A special offer, provided they book you in a slack period.

And if they do choose to leave, be as gracious and helpful as you can. They might refer others to you, or even come back to you if their budget grows. 

There are also ways to make a price hike more palatable.

You might find ways to add more value, without adding lots more work. (More about this in the workshop!)

A price rise can also be a great marketing tool. It gives people who were dithering about buying from you just the nudge they needed. So let them know when your fee is going up, and send out plenty of reminders. (Something my coach told me: the final email you send out the day before will result in most orders. So don’t be shy!)

You might want to also offer a down-sell, a cheaper version of what you do: an unlimited edition print, a book, a download, a workshop if you usually teach one-to-one.

But only do this if your bills are being covered by your premium offerings. Unless you have a big audience or following, it’s much easier to sell a single  item/service for £2000 than it is to sell and deliver 100 small things for £20.

How to charge what you’re worth.

I have many other ways to think about pricing, value and what you charge for your creative work. And I’ll be discussing them in this one-hour workshop. 

When: March 25 at 7.30pm (UK time)

Where: On Zoom. A recording will also be available afterwards, but if you come on the night, I’m happy to stay online and answer your questions afterwards.

How much: £29. Book below.