Rate-setting issues are in the air! I am getting many emails asking about how to set and raise your rates. Fortunately, I’m in the middle of writing an eBook called A Woman’s Guide to Setting and Raising Your Rates. Unfortunately, I can’t write fast enough. (I’m struggling a bit with balancing seeing clients, running groups, and writing. I need a few more hours in my day….) But I want to share some excerpts from my section called “Seven Signs it’s Time to Raise Your Rates”.

1. You have very little price-resistance
As Harry Beckwith, author of Selling the Invisible says: If everyone can afford you, you aren’t charging enough money. If no one can afford you, you are charging too much. So how much should you charge? Beckwith suggests that you should set your price so that about 20% of your prospects don’t hire you because your price is too high for them. This is “price resistance.” Remember, not everyone should be able to afford you!!! If everyone can afford you, you definitely can raise your rates, perhaps significantly. Now if you are losing about half your prospects because you are too expensive for them, that’s too much. Aim for about 20%. Beckwith also reminds us that abut 10% of all people balk and walk away when it comes to price. Perhaps they weren’t serious buyers of your service, it is out of their budget, or they don’t trust you. Who knows! But you simply can’t expect to close every sale. So if you don’t even have 10% price resistance, then it’s definitely time to raise your rates.

This concept was very helpful to me personally. When I raised my rates in January, I had a lot self-doubt. (“Just who did I think I was, anyways?!”) But when I realized I didn’t have much price resistance- most people could afford me- it made it easier to raise my rates and know I wouldn’t lose tons of clients.