It seems that there is a universal rule that the LESS a client pays, the MORE they expect.

And, it’s not uncommon to experience that clients that pay MORE tend to be the ones where you experience the LEAST amount of frustration.

So, logic would lead us to conclude that if we want better clients, we need to charge more.

Yet, so many agencies don’t do it.

Why?

FEAR.

It’s scary.  If you raise your prices, you might turn off too many clients that otherwise would have hired you.

Sure, you might be willing to raise your prices a little, but not so much that you scare everyone off.

If this is hitting home, you’re going to love what I’m going to share with you next….

The bottom line, you don’t need to be fearful of raising your rates.

Here’s why…

At a basic level, would you agree that each of your clients paid you more, that you could work with fewer clients and still potentially make the same amount of money?

The question is, how many could you afford to lose?

Well, let’s take an example and do the math:

Let’s say you sell websites for $3,500.  If over 6 months you sell 10 of these, you’d bring in $35,000 in revenue.

You’ve decided it’s time to raise rates and ditch the clients who are causing you grief and your new rate is double.  You charge $7,000.  Your total revenue for those 10 clients is of course double at $70,000.

But it turns out that half of your prospective clients think the new rate is TOO much, so they don’t buy.  This means you’ll only have 5 projects and make the same $35K.

Losing half your clients over this may still not sound that appealing, and I might agree with you until we start looking at profits.

If each one of these websites that you make costs you about $1,200 between hiring some graphic design help, outsourcing the build, and a little bit of copy and photography, that means you’re making $2,300 profit on each.

That’s $23,000 across your 10 clients.

But with the new rates, you’d make $29,000 in profit with half the clients!

When you raise your rates, your costs do not change.

Now, working with those 5 clients seems a LOT more appealing.

But the reality is (and I know this from experience) when you raise your rates, you’re unlikely to lose half of your sales.

What if all of those clients purchased at the new rate?

Well, that would put a handsome $58,000 of profit into your pocket compared to $23,000.

Changing your rates can be scary until you start looking at the numbers.  When you do, that’s when the idea of charging more ceases to be scary and starts to get really exciting!

If you’d like a copy of my break even spreadsheet where you can plug in your own numbers, DM me on Facebook or Instagram. Mention “break even” and I'll get you set up with member access to the file.