Regardless of social conditioning around gender, marital status and the income gap I talked about in my last article, the truth is you are the one who is in control of valuing yourself.
In this second part of my two part series on Why and How to Transition Your Fees, I’m going to walk you through the last step – Step 3. (Click here to read Step 1 & 2 in part 1)
I love the phrase “small changes – big impact” because it reminds me that it’s the little actions that can create big shifts. And when applied to your fees, the “small change” of raising your rates can mean a big impact of increased income immediately flowing into your business.
In a recent article I talked about how there were only three ways to grow a business:
- Increase the number of clients
- Increase the size of the transaction
- Increase the frequency or leverage-able ways you can make money from that client relationship
Because increasing the number of clients takes the most time, energy and resources, and increasing the frequency or leverage happens after you have a solid client base as well as database, I usually recommend that you focus on increasing the size of the transaction as your first priority. With just a handful of programs or packages to offer, you can make a substantial shift in your income and get to 6-figures and beyond far quicker and with a minimum of clients.
But while transitioning to higher fees sounds simple, women entrepreneurs often get tripped up at the first step, and all because they get their emotions jumbled up with what is essentially a very easy, practical and necessary business action.
For example, the doubts and fears my private coaching clients often start out revealing to me are:
I’m scared I’ll lose clients if I charge more.
Won’t people resent me if I raise my fees?
Should I raise my rates for existing clients?
What do I say to the people who have been working with me for a long time?
I’ll have to include more in my packages/services if I charge more, right? And then I’ll be burned out.
How can I charge more than others who have more experience/training that I do?
Perhaps you have a few of those too???
Remember from part 1 that when you know how to “transition” your fees, you empower yourself to charge what you’re worth and still provide great value.
Step #1 is…Don’t Let the Past Define Your Future
Decide what your services are really worth going forward, starting today, regardless of what you charged previously.
Step #2 is…Define Your “How Many and By When” Limits
The key to this strategy is to decide ahead of time how many clients you’ll accept at the new (increment) fee and by when.
Now let’s take a look at Step #3…Follow A System For Transitioning Current Clients Into The New Package
Raising your fees in increments gives you freedom to start charging more for all incoming clients while transitioning your current clients into your new fee and package structure.
Beware, though. This is NOT a permission slip to allow loose boundaries like letting clients go on indefinitely with the old fees while you’re charging higher rates for newer clients. You’ll end up feeling incongruent and out of integrity with yourself.
The solution is simple: as in Step 2, set a “by when” date of when all current clients are to be on board and enrolled in your new packages at your new rates and stick to it! My private clients love the done-for-you scripts and steps I give them because it eliminates any guesswork and gives them huge confidence. I want to share the basic process with you to get you started.
The key is to have a personal conversation with each client, following a simple outline like this:
First, create a list together of all the results they’ve achieved in working with you. Then, share how excited you are to be taking your business to a new level, and that you’ve designed a new package — or two. Complete the conversation by discussing which package is best for them and presenting the new fee.
Bonus Tip: Don’t present the new fee in total – but rather as the difference between the old and the new.
Yes, it’s possible you may lose a client or two BUT the gains you’ll make with your new clients far outweigh any potential losses. And chances are, the ones who choose not to continue are the ones you secretly hoped would complete with you anyway.
Take Action: Write down your “by when” date and a create a clear schedule of when you’ll speak with each of your current clients. The mindset you need to take on in this process? “When I honor my value, my clients honor my value.”
Remember, successful women entrepreneurs are decisive and have great boundaries that help others respect and admire them.
And increasing the size of your transactions is one of those small changes that make a BIG impact on your income and your confidence. You can do it!