This one is straight to the point.
Right now, you have a limited opportunity to raise your prices.
Because the Australian Financial Review just reported 5.1% headline inflation.
Regardless of where you’re reading this around the world, it’s much the same (I hear in the US it might be even worse).
And I can’t say I’m that surprised.
Because we can all see it.
Prices are sky-rocketing.
A drive-through Maccas coffee I grabbed on Monday was $5.85 (wtf).
Prices are still inflated at the petrol pump.
And the price at the grocery checkout sears a hole in the back pocket.
But let’s be honest…
This is what happens when the Government floods the economy with free cash no one worked for.
But such is life, so now it’s up to you how you play it.
Because if there was EVER going to be a ‘perfect moment’ to put up your prices, now is that time.
How do I figure that out?
Because the market will never be more desensitised to a small price change than right now.
And if you’re like the majority of us in service industries, we rarely change our prices. In which case, you’re probably undervaluing yourself.
This is the complete opposite in almost every other industry.
Take construction for example where costs of materials are increasing every month like clockwork.
In other sectors, price rises are dime a dozen.
Which gives you a very narrow opening to act.
So if you’ve ever wanted to change your prices to reflect your value, then now is your time.
For some of my mentees, they’ve changed prices without anyone even questioning it…
So you may as well bite the bullet.
Because at some point in the future, your prices will have to go up. So why not now?
Let’s do some quick math.
A 10% price rise on a $100 coaching service will sail straight through to the keeper in the vast majority of cases.
But across 30 sessions a week and annualised over a year, would add $15,000 to your bottom line.
If you’re a clinic that sees 150 people a week, a price change of $5 for all services would result in a handsome $39,000 improvement… and most would not bat an eyelid (I did this with a mentee and it worked a treat with zero pushback).
As the saying goes, small hinges shift large doors.
So take the chance my friends while you still can.
Because in an inflationary economy, there is nothing worse than falling even further behind.
And someone has got to look out for you guys, right?
– Karl Goodman