http://www.schoolforstartups.co.uk/community/topic/is-it-possible-to-fix-your-prices-if-you-got-them-wrong The community space of the UK's leading provider of business training for entrepreneurs en-US Thu, 09 Sep 2010 21:21:33 +0000 http://bbpress.org/?v=1.0.2 q http://www.schoolforstartups.co.uk/community/search.php http://www.schoolforstartups.co.uk/community/topic/is-it-possible-to-fix-your-prices-if-you-got-them-wrong#post-42 Mon, 08 Mar 2010 09:30:43 +0000 Doug Richard 42@http://www.schoolforstartups.co.uk/community/ <p>I would start by setting a new set of published prices and announce that they go into effect immediately. Then begin to charge new customers the new pricing schedule. </p> <p>Second, prepare your invoice for your current clients in the following manner</p> <p>New Total XXX<br /> Discount for Long Term Client -XXXXX<br /> Net Price until end of 2010 YYYYYY</p> <p>This shows them that 1) they will continue to get the old prices for the next nine months or so. That you respect that as clients and puts them on notice that the prcie will go up.</p> <p>I would also attach a personal letter describing the changes and sharing with them your insights into the market costs and how you are still an affordable option. Possibly calling them as well, the good news is that you now have nine months to build an additional client base at the higher price and when the moment comes to raise the price to your old clients you can always negotiate a middle ground, so that they are closer to you price.... </p> http://www.schoolforstartups.co.uk/community/topic/is-it-possible-to-fix-your-prices-if-you-got-them-wrong#post-40 Fri, 05 Mar 2010 00:32:17 +0000 EnriqueSanguino 40@http://www.schoolforstartups.co.uk/community/ <p>Hi to all S4S community</p> <p>about my above question, i'd like to ask you what would you do<br /> if you want to correct your prices (Simply because we cannot afford charging<br /> those super-low rates anymore) to adjust them to the market prices of<br /> a service. </p> <p>i assume the client would leave us and find someone else<br /> to offer the same service</p> <p>I see some things could happen: </p> <p>1. The client (who already is happy hiring your services) will not<br /> be willing to pay the increase, and may find someone to replace you<br /> if you tell him you want to double your rates. </p> <p>2. If I put myself in a better position (get a larger SEO, then leads, then more sales)<br /> and then say "good bye, i don't need you anymore"<br /> because I could be more productive with another new client. </p> <p>3. get a new client and say good bye to the old one.</p> <p>I don't really like the idea of losing a solid relationship with a client that<br /> has been taken years to build. However when it comes to money,<br /> some people would not feel attached to anyone and would easily say goodbye.<br /> No one is essential. </p> <p>I am learning my lesson. It's not good to be the cheapest, because<br /> there is always someone who could be cheaper than you. Also, it sends the<br /> wrong signal when creating a negative perception of being cheap. </p> <p>Doug said, "price is discovering, it's not the sum of your desires". Since<br /> i've heard that I've been trying to figure out how much value we give<br /> to our work and how much clients are willing to pay for that. When<br /> comparing the market prices, I realise there is room for our prices to<br /> go up, it's only a matter of time to see if we could increase the prices<br /> as much a we want. </p>