We got an email from a client asking us about the price they were charging for a seminar they have been giving for years… their costs have been raising, the profit margin is shrinking… how do they determine if they should raise the price?
This is not a "time for money" question, it is a "value for money" question. We see this with many clients that offer services, they under-value their knowledge.
After a little research, we determined that for similar trainings, the client is on the low-end of pricing, however since this particular training has a long history, changing the price depends on:
• how important it is to keep the current audience (many who have come several times)
• what the current audience has come to expect,
• how much the client believed they would pay in the future, (this could be discovered through surveys, both online and offline)
• if the client can add value another way to justify to the current audience the increase in price, especially if the client chooses to significantly increase the price,
• can the client gain a greater audience if the price increase allowed for expanded marketing,
Finally and most important, "How much you are comfortable charging?" If you can‘t breathe while saying the price, the prospective attendees won’t either. Note, this finally comment has nothing to do with the actual dollar amount charged, it is about congruence within yourself. If you don’t think you are worth it, your clients won’t either.
"What the new price should be?" Stay tuned.
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