The other day, I told my barber I think you should raise your prices, but not from me she replied I actually
Be getting an email for me later this week. I was happy to hear this, but honestly
I thought she could raise them even more after all one of my most popular videos was this one what?
310 dollars for a men's haircut
I had to see how someone could charge so much for a men's haircut and get away with it. Can you relate?
Good keep watching this video
My barber wanted to raise her prices, but she was afraid
She wanted to find a way to justify the price increase so that people would accept it in this case
See what she said?
My barber was afraid that charging a higher price would scare customers away
And I get it because this is very common people think they need to justify and explain
their value at every turn
But when you do good work your value comes from well
Doing good work you see simply that you're charging what you're charging. That's gonna. Send a message that you're worth it, but here's the thing
business owners and freelancers tend to grossly
Misinterpret, what will happen when they raise their prices they make two mistakes
First they underestimate how many people are willing to pay more?
Second they underestimate how much more people are willing to pay if you want the technical term
economists call this price elasticity of demand
it basically answers the question how many customers will I lose if I raise my price by a certain amount and
The fact is it's usually a tiny number and yet you're afraid to raise your prices, and it gets worse
Some people actually get it completely backwards they think I'll lower my price
And get a million clients, but again
They misinterpret the effects just lowering your prices won't attract an avalanche of new clients
Just like raising your prices won't scare them away that being said it all comes back to doing great work
Taking it back to my barber. She does a great job
She asks the right questions to make sure I'm getting the style I want and she knows what she's doing I mean take a look
Now you might be wondering what exactly do I do just raise my prices and the answer is
Yes
So I'll tell you what I told her if you're raising your price and all of your new clients say yes without a whimper
Your new price is still too low
That's right. You're not charging enough
If everyone says yes, you're not charging what you're worth, and you're not optimizing your profits
How far can you go at least until some people start saying no at that point
You're still offering a valuable service for most people and you'll automatically filter out the people that aren't a perfect fit
remember raising prices
Rarely scares away clients as much as people fear and on the flip side
Lowering your prices is unlikely to attract as many people as you're hoping now when it comes to raising your prices
There's only one way to know
Try it you just might be surprised how far you can go without losing clients
Now here's what I want to hear from you if you've been thinking about raising your prices
But you were afraid to lose clients was this helpful, or if you raised your prices in the past
I'd love to hear your story were you surprised by how many people said yes leave a comment now
Then if you know someone who you think is not charging enough for the amazing work. They do send them this video
You'll do me and them a huge favor and do me a favor hit that like button
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