Increasing Revenue: Raise Your Rates or Your Clients?

This is a pervasive small business issue.

I was talking with a friend today who has the potential to change the world, but he was charging small-time pricing. As I thought through the issue, I realized that like many people I have met, he had a block to seeing the potential for larger fees.

I think there are several potential issues going on here and for others:

  1. One’s network is made up of small thinkers and cheap people.
  2. One’s clients are used to paying smaller fees.
  3. One’s self-perception is not great enough to allow for big pricing.
  4. The value offered is not worth more than the small pricing.

Here’s one of my answers to him (I thought it was brilliant):

It is easier for us to change our pricing to match our networks than change our networks to match our pricing. But if we want true abundance, we need to change our networks/clients to match our BIG vision.

Here’s a response to each of the points above:

  1. This limits our thinking because we calibrate based on the people we are around. Back to the adage “You will rise to the level of the five people closest to you”.
  2. Change your clients. Go up-market. Start working with people who will create a bigger impact. If you want to maximize your impact during your lifetime, you need to work with people who have major impact, or who will soon. Working with people who are concerned only with themselves or maybe a few others will not juice most people enough to keep going strong. Focus on maximum impact.
  3. I have a great friend, Paige Armstrong, who is a psychotherapist and coach (psycho-coach :-)). She has helped me and several clients get over small-minded thinking about our value and pricing. After 1-3 sessions with her, most people double their rates and start getting more business. Invest in yourself and give her a call. She is super to work with and I’ve seen her do amazing things with peoples’ perspectives about money and other things.
  4. This is rarely the case with the people I know. Maybe it’s because I like to be around experts and high-value people, but most offer much more than the value paid for. IF this is an issue for you, consider revamping your offering and adding more value – specifically aligned with what customers want. It must be about the customers, so ask them.

Think BIG, act BIG, and keep BIG thinking people around you. Sounds simple, and it is. And it works.

I am so blessed by the friends and family I have, and they keep me thinking BIG. Thank you!

By | 2016-02-07T10:10:07-05:00 February 26th, 2015|Expert Business, Revenue Growth, The Leverage Continuum™|0 Comments

About the Author:

Craig is founder and Chief Thinkologist of Big Think Innovation, Inc. Craig focuses on business and marketing strategy, business model innovation, and revenue growth architecture and innovation. He has an MBA from UNC Business School and is a member of MENSA. Craig has been building businesses since he was 15, and has served in C-level roles in IT, marketing, and general management.

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